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Cardano Summit 2023: Merging AI And Blockchain, Funding, And Day 2 Recap

In the financial center of Dubai, the Cardano Summit 2023 will gather some of the most prominent projects in the crypto space. During the three-day event, speakers, founders, and the community will voice views on the growing sector and the future of the network and blockchain technology as Cardano enters a critical stage in its development.

Cardano Summit 2023 Hints At What’s Next For The Ecosystem

The second day of the Cardano Summit 2023 was all about a debate on governance, community, funding, and bridging the Cardano ecosystem with new technologies, such as Artificial Intelligence. Governance and giving the community more power has been a key issue for IOG, Cardano’s leading developer.

Two years ago, the Cardano ecosystem celebrated its full decentralization as stake pool operators took over block production. Now, the ecosystem continues to move in that direction by implementing capabilities that will help the community retain that power.

Sebastian Zilliacus from Emurgo, a Cardano-based entity operating as their communication and educational arm, presented their vision to migrate social media platforms from centralized to decentralized environments.

In that way, users would finally break free from the control of third parties and can truly “own their identities.” In addition, teams presented tokenization solutions that could allow everyone to own a piece of precious metal and other “real-world assets” and ways to support displaced people by providing them with financial support using staking pools.

To break down these and other topics, including the union of blockchain and AI, funding, and the sentiment during the event, our team reached out to Sheraz Ahmed, Managing Partner at STORM, to get his unique insight.

Ahmed was the master of ceremonies on the Innovation Stage. He has attended the last three Cardano Summits while helping with the ecosystem in different endeavors, including Emurgo and its marketing and educational efforts. This is what he told us about AI and Blockchain:

(…) blockchain as a data management system can benefit from having AI integrated within it. I think that’s a really important part. I think it also kind of has the ability that blockchain and that we can use blockchain as an underlying for AI. So I think the two go really well together as a well-attended panel.

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 A New Way To Fund Projects On Cardano

On the other hand, the community was looking forward to the debate around funding and financial support. As Ahmed explained, funding in the Cardano ecosystem mostly takes place via Project Catalyst, which has seen some delays during the Bear Market.

In that sense, the debate focused on incentivizing Venture Capitalist firms and external funding to onboard the Cardano ecosystem. Ahmed said:

(…) cutting off funding can be cutting off the oxygen out of startups. And so they are looking at other ways of kind of funding. Charles Hodkinson gave an interesting analogy to this where he was like, well, the treasury at the Foundation Foundation, the CARDENA as a whole is kind of like a big reservoir of water.

That catalyst is just the pipe is the only pipe at the moment to be able to release all of this kind of treasury that they have to support the community. And that through SIP 1694, which is the Air Voltaire, which will be the new governance mechanism to allow for things to operate a bit more autonomously, will allow for the community to be able to distribute treasury in a much more facilitated manner. And so I think a lot of community excited about that because it means that the flood gates are open or will be open and it will allow for projects, the community and other things to be funded in a better way.

Once again, the Cardano ecosystem seems to be preparing for the next cycle from different angles by supporting developers today, incentivizing more developers to work on their blockchain, and keeping a strong community.

These elements could play out for the Cardano ecosystem during the next Bull Cycle, allowing it to gain an advantage over Polkadot, Solana, and other networks. Ahmed concluded:

We’ll just have to wait and see. And it depends on the wisdom of the community and where they decide to spend their resources (…). If they have a better distribution of funds and in a more long-term mindset where they’re not just spending the whole treasury in a year, two years, but they have a 10 to 20 year mindset, I think things can really happen. So that’s super exciting.

Cover image from Unsplash, chart from Tradingview

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Cardano Climbs TVL Ranks: 198% Yearly Surge Puts Network Among Top 15

Cardano (ADA), a Proof-of-Stake (PoS) Layer-1 (L1) smart contract network launched in 2017, experienced a largely quiet Q3 2023 in the overall crypto market. However, the network faced challenges with a decline in ADA’s price and revenue. 

Despite these setbacks, Cardano showcased growth in its treasury balance, stablecoin market cap, and Total Value Locked (TVL) ranking. Furthermore, the network’s infrastructure and connections to other ecosystems have paved the way for future decentralized finance (DeFi) sector developments.

Cardano Sees Decrease In Daily Active Addresses And Transactions

According to a recent report by Messari, ADA’s price declined for the second consecutive quarter, down 9.5% quarter-over-quarter (QoQ) to $0.25, in line with the overall crypto market’s 9.2% QoQ fall. 

The revenue generated from transaction fees also decreased by 29.9% QoQ, reflecting a decline in user urgency to transact during this period.

Cardano’s Treasury balance grew by 7.2% QoQ to 1.39 billion ADA. Although the treasury’s value in USD terms decreased by 3.0% QoQ due to ADA price depreciation, it demonstrated steady growth in ADA holdings. 

Currently, 20% of transaction fees contribute to the treasury, providing a potential funding source for future projects.

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Moreover, Cardano experienced a decline in daily active addresses for the third consecutive quarter, down 28.9% QoQ to 41,100. Average daily transactions also decreased by 12.2% QoQ. 

However, the ratio of transactions to active addresses indicated that while the number of active users decreased, those present were power users, suggesting high engagement within the network.

Average daily dapp transactions decreased by 14.7% QoQ, but overall, they increased by 40.0% YTD. Non-fungible token (NFT) transaction activity declined for the third consecutive quarter, while NFT trading volume increased, highlighting the growing value of Cardano NFTs.

Cardano’s TVL Demonstrates Stability Despite Market Challenges

Cardano’s TVL remained steady, declining only 0.1% QoQ. However, its TVL ranking among all networks improved from 21st to 15th during Q3, indicating relative growth compared to other ecosystems. 

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The launch of two new stablecoins, iUSD and DJED, significantly contributed to the overall TVL growth, as the stablecoin market cap increased by 16.3% QoQ.

Per the report, Cardano also made progress in interoperability and core infrastructure during Q3. Partnerships with networks like Wanchain and developments in state channels, on-chain governance, and sidechains demonstrate the network’s commitment to expanding its capabilities. 

Overall, Cardano’s Q3 2023 reflects a period of challenges and growth for the network. Despite declining ADA’s price and revenue, the treasury balance, stablecoin market cap, and TVL ranking showcased positive trends. 

The network’s infrastructure developments and connections to other ecosystems position it favorably for future advancements in the DeFi sector. As Cardano continues to address challenges and foster innovation, it remains a key player in the blockchain landscape.

ADA Price Soars By 17% In 30 Days

Despite the sideways movement and declines in various indicators of Cardano’s overall ecosystem, ADA has experienced a significant surge of 17% in the past 30 days. 

Currently, ADA is trading at $0.2983, continuing its upward trend recovery over the past weeks following a sharp decline since July 13 and a subsequent consolidation phase. 

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This consolidation phase led to a breakout of the previous four-month trend, which halted on October 19, triggering the recent surge in the token’s price. However, looking at the one-year timeframe, ADA’s value has seen a decline of 26%.

Featured image from Shutterstock, chart from TradingView.com 

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Cardano, Solana, And Ethereum Under Heat, Data Points To More Trouble For Altcoins

Bulls pushed back and momentarily halted the increasing selling pressure impacting Cardano, Solana, and Ethereum. The altcoin market has been stabilizing over the last day, but fresh data points to potential issues in the short term.

As of this writing, Cardano (ADA) trades at $0.23 with sideways movement in the past day. Solana and Ethereum recorded similar price action over this period, but these assets have been slowly bleeding into support on the weekly chart.

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Cardano, Solana, And Altcoins Could Get Hit

Data shared by the Co-Founders of crypto analysis firm Glassnode via social media platform X indicates a rise in Bitcoin Dominance (BTC.D). The metric was slowly trending to the downside, but it found some support yesterday and could be poised to regain previously lost territory.

The metric measures the percentage of the total crypto market capitalization comprised of Bitcoin. In addition, whenever BTC.D reaches a certain point, it often leads to mini altcoin bull or bear markets.

The metric could hint at further losses for Cardano, Solana, and other tokens in the current scenario. The Glassnode Co-Founders stated:

It’s not just ETH feeling the heat; other major altcoins like Solana, Cardano, Dogecoin, Tron, Polkadot, and Polygon are also deep in the red. With Bitcoin’s dominance climbing past 51%, inching closer to its 2021 peak, altcoins are indeed feeling the pressure. To see the resurgence of the much-awaited Altcoins Season, a significant recovery will be essential.

As seen in the chart below, the Bitcoin Altcoin Cycle chart is moving closer to a “Bitcoin Season,” as indicated by the blue line. As Bitcoin Dominance trends upwards into the 50% territory, altcoins will likely keep seeing losses in the short time frame.

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However, the Bitcoin Altcoin Cycle chart shows that the BTC.D stands at a critical zone. The metric has bounced back into the Altcoin Season Territory in the past.

In particular, Cardano, Solana, XRP, Ethereum, and other altcoins enjoyed a substantial rally in July. If Bitcoin can’t produce a catalyzer, something to push it above the 50% area in dominance, then Altcoins can see some profits.

Ethereum could potentially hold the key to propel altcoins into a hot season. On this cryptocurrency’s price action, the Glassnode co-founder stated:

From its weekly resistance at $1,744, ETH has tumbled, marking an 8% decline in just two weeks, landing it at $1,574. While the price seems to be consolidating, the upward slope of the RSI suggests buyers are vying for higher levels. Yet, with sellers resisting this advance, they might (…).

Cover image from Unsplash, chart from Tradingview