4 days after Alonzo HFC deployed over 40,000 smart contracts, Cardano sees how this will affect the price
To update: This article states that 40,000 smart contracts have been deployed on the Cardano network. However, it has been confirmed that the sources previously used were incorrect and the correct number of contracts deployed on the network at the time of this update is 2,334. Links have been updated to more detailed sources.
Smart contracts became a reality in the Cardano network after September 12th. After the launch of Alonzo Hard Fork Combinator, developers could now start creating smart contracts in the ecosystem. This would help developers create decentralized applications (DApps) to provide decentralized financial services (DeFi) to blockchain users.
With the number of smart contracts created on the network, there is no doubt that we will see an influx of new decentralized apps on the network. The project has said that they are helping developers bring their projects to life on the platform. By making the Cardano ecosystem as safe and developer-friendly as possible. The developers, in turn, have proven their trust in the network with the number of smart contracts already living in the ecosystem.
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Cardano sees over 40,000 smart contracts in four days
On the first day after the introduction, over 100 smart contracts were created in the first 24 hours. That number in itself was impressive. But the following days have shown an even accelerated schedule for creating these smart contracts. Thursday September 16 marks the fourth day after the Alonzo HFC and the current number of smart contracts on the network is now close to 41,000.
While most of these smart contracts are not going into effect now, developers are creating them to lock their tokens before their decentralized applications are released. It shows the number of projects developers are already working on to bring them into the Cardano ecosystem. With the rise of decentralized funding still going on and more and more people moving away from other leading smart contracts platforms in favor of a cheaper and faster alternative like Cardano, it is expected that more protocols will adopt their smart contracts on the network.
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Currently, these smart contracts are in a timelock contract that locks them down for a period of time until developers are ready to use them. This gives the developers the time they need to develop their protocols while having their smart contracts secured in advance for their use.
How does this affect this price
The effects of these many smart contracts being created on the Cardano blockchain may not be immediately apparent. However, there is no doubt that the speed at which the smart contracts are created will have a positive long-term impact on the price of the native ADA asset.
ADA price trending around $ 2.4 | Source: ADAUSD on TradingView.com
The rise of decentralized finance has been one of the main driving forces behind the success of Ethereum and, most recently, the success of Solana. In the same way, DeFi protocols on the Cardano blockchain will also effectively increase the value of your token. This is because users need to use ADA to conduct transactions on the blockchain once these decentralized applications are up and running.
While users don’t necessarily need to hold ADA coins, they do need to be purchased in order to trade and pay transaction fees. This will create a demand for the coin in the long run, resulting in a higher value of the digital asset.
Featured image from Decrypt, chart from TradingView.com