Crypto: Cardano, the 2.5% Inflation that Annoys the Competition

The leaders of Cardano are ambitious about making their blockchain more efficient and competitive, despite obstacles and challenges such as inflation. Cardano stands out with an extremely low inflation rate of 2.5%, much lower than that of its competitors. This low rate, both a source of admiration and criticism, positions Cardano as a unique force in the cryptocurrency world.

Cardano: A Crypto with Controlled Inflation

Cardano (ADA), which according to Charles Hoskinson will soon surpass Bitcoin, is distinguished by its exceptionally low inflation of 2.5% over the past year. In comparison, Solana has a rate of 14%, Avalanche 15%, and Cosmos 13%.

This huge differential reflects the economic stability of Cardano and makes this blockchain a safe haven for investors. As highlighted by an influential member of the Cardano community, ADA Whale:

“Cardano has reached significant levels of steady adoption with low inflation. These are what we call fundamentals.”

Cardano had an inflation of 2.5% over the last 1y. For comparison, Sol: 14%. Avax: 15%. Cosmos: 13%. Dot: 10%

Cardano has achieved stable, significant levels of adoption with low inflation

These are what we call the fundamentals. And it explains why Cardano will remain up there

— ADA whale (@cardano_whale) August 8, 2024

Imagine for a moment a scenario where Cardano’s inflation reaches 15%: it would be a general panic among investors, pushing many to sell their ADA for rarer assets like Bitcoin.

Fortunately, this hypothesis remains in the realm of fiction, as Cardano continues to stand out with its low inflation rate. This feature makes it a “sweet spot” in the crypto world, attracting both praise for its rigorous management and criticism from its competitors whose inflation remains high.

Between Massive Adoption and Persistent Criticism

However, not everything is rosy for Cardano. The blockchain remains under fire from critics due to low network activity and slow progress of its DeFi ecosystem.

The Total Value Locked (TVL) of Cardano in decentralized finance protocols, which had reached a peak of $468 million in March 2024, dropped to $170 million after a decline in the price of the ADA cryptocurrency.

Even if a slight recovery has been observed, this drop has fueled the discourses of the detractors.

Cardano’s three main DeFi protocols – Minswap, Indigo, and Liqwid – represent more than 50% of this TVL, showing a significant concentration in Cardano’s DeFi ecosystem.

Despite these challenges, the community remains optimistic about Cardano’s ability to overcome these obstacles and continue to grow.

• Cardano DeFi TVL: March 2024: $468M → Today: $170M

Cardano, with controlled inflation and a record transaction volume allowing it to soar, remains a safe bet in the world of cryptocurrencies, despite the challenges.