Cardano

Solana

Value

Avalanche

Cosmos

<p>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.</p> 
<h2 id="h-cardano-a-crypto-with-controlled-inflation">Cardano: A Crypto with Controlled Inflation</h2> 
<p>Cardano (ADA), which according to Charles Hoskinson <a href="https://www.cointribune.com/en/here-is-why-cardano-will-soon-surpass-bitcoin/" target="_blank" rel="noreferrer noopener">will soon surpass Bitcoin</a>, is distinguished by its <strong>exceptionally low inflation of 2.5%</strong> over the past year. In comparison, Solana has a rate of 14%, Avalanche 15%, and Cosmos 13%.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1"> 
 </div> 
</div> 
<p>This huge differential reflects the <strong>economic stability of Cardano</strong> and makes this blockchain <strong>a safe haven for investors</strong>. As highlighted by an influential member of the Cardano community, <a href="https://x.com/cardano_whale/status/1821610561328836617https://x.com/cardano_whale/status/1821610561328836617" target="_blank" rel="noreferrer noopener">ADA Whale</a>:</p> 
<p>“<em>Cardano has reached significant levels of steady adoption with low inflation. These are what we call fundamentals.</em>”</p> 
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="en" dir="ltr">Cardano had an inflation of 2.5% over the last 1y. For comparison, Sol: 14%. Avax: 15%. Cosmos: 13%. Dot: 10%<br><br>Cardano has achieved stable, significant levels of adoption with low inflation<br><br>These are what we call the fundamentals. And it explains why Cardano will remain up there</p>— ADA whale (@cardano_whale) <a href="https://twitter.com/cardano_whale/status/1821610561328836617?ref_src=twsrc%5Etfw">August 8, 2024</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div> 
 </div>
</figure> 
<p>Imagine for a moment <strong>a scenario where Cardano’s inflation reaches 15%</strong>: it would be <strong>a general panic</strong> among investors, pushing many to sell their ADA for rarer assets like Bitcoin.</p> 
<p>Fortunately, this hypothesis remains in the realm of fiction, as <strong>Cardano continues to stand out with its low inflation rate</strong>. 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.</p> 
<div class="affiliate-button"> <a class="affiliate-button__link" href="https://bitpanda.pxf.io/c/2801338/1295465/15871" target="_blank" rel="noreferrer noopener">Discover the Bitpanda platform</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noreferrer noopener">This link uses an affiliate program.</a> 
</div> 
<h2 id="h-between-massive-adoption-and-persistent-criticism">Between Massive Adoption and Persistent Criticism</h2> 
<p>However, not everything is rosy for Cardano. The blockchain remains under fire from critics due to <strong>low network activity and slow progress of its DeFi ecosystem</strong>.</p> 
<p>The Total Value Locked (TVL) of Cardano in decentralized finance protocols, which had reached a peak of <strong>$468 million in March 2024</strong>, dropped to $170 million after a decline in the price of the ADA cryptocurrency.</p>  
<div class="tradingview-widget-container tradingview--mini-chart"> 
 <div class="tradingview-widget-container__widget"></div> 
 <div class="tradingview--mini-chart--dark"> 
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ADAUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script> 
 </div> 
 <div class="tradingview--mini-chart--light"> 
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ADAUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script> 
 </div> 
 <div class="tradingview-widget-copyright">
  <a href="https://fr.tradingview.com/symbols/ADAUSD/?exchange=BINANCE" rel="noopener" target="_blank"><span class="text-primary-color">ADAUSD chart</span></a> by TradingView
 </div> 
</div>  
<p>Even if a slight recovery has been observed, this drop has fueled the discourses of the detractors.</p> 
<p>Cardano’s three main DeFi protocols – <strong>Minswap, Indigo, and Liqwid – represent more than 50% of this TVL</strong>, showing a significant concentration in Cardano’s DeFi ecosystem.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2"> 
 </div> 
</div> 
<p>Despite these challenges, the community remains optimistic about Cardano’s ability to overcome these obstacles and continue to grow.</p> 
<ul> 
 <li>Cardano DeFi TVL: March 2024: $468M → Today: $170M</li> 
</ul> 
<div class="affiliate-button"> <a class="affiliate-button__link" href="https://bitvavo.com/fr/affiliate/coinmedia?a=_cta" target="_blank" rel="noreferrer noopener">€20 bonus for registering on Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noreferrer noopener">This link uses an affiliate program.</a> 
</div> 
<p>Cardano, with controlled inflation and <a href="https://www.cointribune.com/en/crypto-cardano-soars-with-a-record-transaction-volume/" target="_blank" rel="noreferrer noopener">a record transaction volume allowing it to soar</a>, remains a safe bet in the world of cryptocurrencies, despite the challenges.</p>

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

Table of Contents

Cointribune EN

Other articles published on Aug 11, 2024

Livepeer's Integration with Aptos: Enhancing Decentralised Streaming Solutions Along with the Wor...

Binance Labs' New Investment: What is Particle Network?

The Bull Market Will Return in 2024, Top Crypto To Buy Before

Binance Secured Over $73M in Stolen Funds from Hacks in 2024

$ONDO Leads RWA Tokens with $1.23B Weekly Trading Volume

Federal Reserve Restricts Crypto Banks

Join our free newsletter for daily crypto updates!