Reading time: ~2 m
The launch of the SundaeSwap DEX exchange on the Cardano blockchain, as expected, led to a series of new records: the size of TVL investments, the number of wallets and the volume of transactions. Despite the unequivocal positive of these events, the ADA coin has undergone a sell-off and ends the week 19% lower than it started.
The size of Cardano’s fall is not the worst in the top 10 rankings, which includes cryptocurrency, but it is below the results of Bitcoin, Binance Coin and Dogecoin.
Analysts call the reason for the “drain” of ADA, a sharp jump in the workload of blocks, filled in early January by 32%, now they are clogged with transactions “to the eyeballs” of 93.19%. At the same time, the launch of SundaeSwap increased the TVL capitalization of the blockchain to $80 million. This is an insignificant amount compared to the tens of billions of investments frozen on competitors’ blockchains.
It is enough to simply assume, based on the given statistics, that the launch of any other not the largest DEX will overload the network, sending transactions to hourly waits. However, according to numerous statements in social networks, a number of users have already experienced a long freeze in the exchange operations on SundaeSwap.
Their problems may be related to the DEX exchange puncture code, but they put the entire Cardano DeFi ecosystem at risk. Statistics show 96% dominance of SundaeSwap in the influx of TVL investments.
The popularity of the new DEX could also have a negative impact on the Cardano rate if investors start leaving its liquidity pools en masse. Such a situation may occur if the dispute between SundaeSwap and the investors of the CardStarter startup goes to court.
In the past, the two projects decided to team up to create a DEX exchange on Cardano. CardStarter investors were required to provide liquidity for CSWAP tokens, the “fusion currency” of the two projects, which was then traded on the Uniswap DEX. As a reward for their loyalty, they must become members of the incentive program after the launch of SundaeSwap on Cardano.
In fact, the minuscule reward disappointed CardStarter investors. While they are expressing their claims on social networks, reducing the reputation of the flagship Cardano project, but going to court will scare away many users from cooperating with the DEX exchange.
#suitable #Cardano #DeFi
