Could Cardano Be the Next Leading Blockchain for NFTs?

Sabrina Martins Vieira

Second only to Ethereum, Cardano has everything it needs to become the next benchmark in the NFT space; whether it will be able to develop quickly enough remains to be seen

Contents

  • Why did Cardano skyrocket like this?
  • But will this make the altcoin the next NFT star?

Just after Ethereum (ETH), the big star of the non-fungible token (NFT) segment was Solana. However, one of ETH’s major competitors was hit by the collapse of FTX and Alameda Research, giving way to another smart contract network, Cardano (ADA).

It’s important to be aware that Cardano’s growth in the NFT arena didn’t come until after the Sam Bankman-Fried (SBF) empire collapsed. For example, on October 27, DappRadar reported that, in just one month, the trading volume of Cardano non-fungible tokens has reached the $19 million mark.

Indeed, it has been an immense joy for altcoin holders as, in addition to Cardano becoming the third largest NFT protocol, its number of transactions has reached a peak not seen since May 2022.

Why did Cardano skyrocket like this?

Shortly after some delays, the Cardano network underwent the Vasil hard fork in September of this year. This update worked directly on the scalability of competitor Ethereum. With the launch of a smart contract platform and a higher level of scalability, it is only natural that more investors will look to ADA network NFTs.

Speaking about the successful growth of NFTs on Cardano, Pieter Nierop, a member of the Cardano Fans Staking Pool, argued that there are three factors that cause non-fungible tokens to grow with the cryptocurrency. I’m:

  • NFT transactions do not fail;
  • Costs are low;
  • You don’t waste your money on gas rates.

With these points highlighted, it is safe to say that Cardano can stand out from its main rivals.

At the time of writing this article, Solana has shown the market a completely unstable network, with transactions interrupted in moments of high usability, in a hacker attack or simply in a misconfigured node. Ethereum, on the other hand, needs no comment when it comes to high transfer fees.

Additionally, Cardano has a strong community and seeks to form major partnerships for its launches, including NFTs.

In April 2022, for example, the NFT Clay Nation project launched an official collaboration with Snoop Dogg to bring iconic clay animation, dirt fields, and music content to Cardano.

Obviously we cannot fail to point out that with the altcoin it is possible to send multiple Cardano NFTs in a single transaction. This is true even if they come from different collections.

It also has ledger guaranteed accounting integrity (not a smart contract) and ouroboros consensus validated security. Also, its monetary policy rules are 100% regulated, no surprises.

But will this make the altcoin the next NFT star?

It is a fact that the highlighted points help to increase the usability of Cardano. However, to say that this alone may be enough for the altcoin to cement itself as the leader of NFTs may not be Cardano’s best claim.

The Cardano team needs to find a working point where research for the development of cryptocurrencies does not lag development and is as fast as the market requires.

Cryptocurrency investors like agile solutions and projects that take time to make their deliveries end up losing ground to others that don’t have such a strong network. Solana is there to prove the information is true.

Despite being a cryptocurrency with constant disruptions on its blockchain, this hasn’t proved to be an impediment for Solana to stand out in the NFT segment. On the other hand, the pursuit of an error-free network meant that Cardano did not grow as fast as his rival.

Of course, the research work done by the altcoin team should be appreciated, as Cardano users have nothing to complain about in terms of instability. But finding a way to provide the best services, without taking years to do so, could be what differentiates Cardano in the world of non-fungible tokens.

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