Fantastic news was shared by Cardano founder Charles Hoskinson. Nearly a year after the announcement, the Cardano Development Team has launched a new solution known as Hydra Heads.
Another Cardano milestone
Hydra Heads is one of Cardano’s key protocols, being a so-called second layer solution. It aims to increase the level of network security as well as develop scalability in the ADA space. With the goal of being one of the leading designs within smart contracts, Cardano is committed to maximizing throughput. Low transaction times, combined with low memory usage, is what is expected from a Hydra Heads implementation. This is a key building block for the ecosystem. It leverages the capabilities behind the Extended Unspent Transaction Output (EUTXO) model to lay the foundation for more advanced designs.
Charles Hoskinson announced the success via Twitter. He further provided the content published by developer Sebastian Nagel and provided additional words:
“I am extremely proud of the Hydra team for reaching this milestone. This is some of the fastest and best applied research in the Cardano ecosystem.”
Cardano chases the competition
Cardano is not slowing down and continues to grow. Following the long-awaited launch of smart contracts and the activation of bridges for ERC-20 tokens, the ecosystem is becoming increasingly useful. As of mid-March 2022, there were 517 projects in it. Most of them are NFT collections. DeFi solutions are also popular, as well as new wallets.
Success is not reflected yet in the price
In early September, the ADA price reached its ATH of $3.16. Since then, a period of regular decline began, with few upward breakout attempts. The bottom recorded in late February marked the Cardano price at $0.75, a decline of more than 76% from the peak and in just a few months. Positive news is not driving price action. It is worth noting that the downward spike began with the launch of the long-awaited smart contracts. Thus, the principle of buying rumors and selling facts played out.
Looking at the chart we can see the forming of a pennant. At this point, there is little to support a reversal of the ongoing trend. The ADA price is below all key moving averages, with the 50-day SMA (red line) close to the upper boundary of the pennant, which could strengthen resistance and strongly counter further breakout attempts.