Saturday, January 28, 2023
  • Cardano announced its partnership with Ethiopia in 2022, marking its first significant descent towards Africa’s crypto ecosystem
  • Cardano has failed to market their products and efforts in Africa adequately
  • Shiba Inu and Dogecoin have significantly risen since their area of expertise surround the constant interaction with crypto traders in other sectors apart from the crypto market

Over the years, numerous altcoins have gained some sense of fame. This is either due to their partnership or their unique application of blockchain technology. Aside from the usual cryptocurrencies, crypto traders have firmly supported altcoins such as Cardano, Polygon and Solana. Each one of these altcoins has had its eyes set on Africa’s crypto ecosystem for some time now.

Most crypto exchange platforms saw this as an opportunity and established their roots in Africa’s crypto ecosystem. Before long digital assets became one of the rising norms in several counties. South Africa, Nigeria, Kenya, Tanzania and Egypt are among the few countries known for their immense contribution to the crypto market. This article highlights the strides that Cardano is one of the top crypto markets and whether they are helpful.  

Why Cardano Focused on Africa

One of Cardano’s core principles is exposing Africa to the crypto market and digital assets. By doing so, it can accommodate all those individuals who do not have access to financial services due t various circumstances. With this in mind, Hoskinson Charles introduced DeFi through Cardano. Many consider the Cardano blockchain network one of the most advanced decentralized networks that cater to DeFi services today.

Also, Read What Cardano envisions for Africa(Opens in a new browser tab)

Its strides have made significant headway. Africa’s crypto ecosystem has embraced the concept of cryptocurrency and blockchain technology. Essentially, leapfrogging other continents such as the US and Europe. Charles expects that it is a fact that has always been evident even before the crypto market set foot in Africa’s ecosystem.

Cardano-&-Africa

Cardano seeks to empower Africa’s crypto market through its sophisticated blockchain technology.[Photo/Medium]

In an interview with the Financial Times Crypto and Digital Assets Summit, Cardano’s founder stated that a simple factor plagues Africa’s crypto ecosystem; more demand with a lack of supply. This fact has led to numerous African s suffering due to the lack of financial services. It merely requires the spotlight for a change.

When Chainalysis released its findings on Africa’s crypto adoption rate, it awed the entire world. This significantly followed up with numerous organizations flooding the continent with scheduled Tours, blockchain education centres and Summits. These are facts that Cardano foreshadowed during its path to presenting DeFi to various nations.

Cardano announced its partnership with Ethiopia in 2022, marking its first significant descent towards Africa’s crypto ecosystem. Cardano announced its partnership with the Ethiopian Ministry of Education, which aimed to provide a blockchain digital identity for students and teachers.

Also, Read Cardano (ADA) partners with Empowa to build eco-friendly housing for Africa.

This innovation would significantly boost Africa’s blockchain adoption rate and showcase an additional application of the technology ushering in the 4th Industrial revolution. Cardan has also made significant strides in other African countries such as Tanzania, Kenya and South Africa. The crypto exchange also released Africa’s own native digital asset, ADA. The primary purpose of this crypto coin is to act as the native token for an African blockchain network. It uses the new PoS mechanism, essentially curbing additional demerits of the crypto market.

Cardano’s momentums are slowly regressing in Africa’s ecosystem.

As mentioned earlier, Cardano has one of the most sophisticated decentralized blockchain networks that efficiently caters to DeFi services. Its native crypto coin ADA utilizes the PoS consensus mechanism making it one of the few contenders for the title Ethereum Killer. Despite its superior functionalities and services, it may need something else to dominate Africa’s crypto ecosystem.

Cardano has failed to market their products and efforts in Africa adequately. Aside from the various interviews conducted by Hoskinson and a few announcements on their progress, they generally have not released any captivating announcements. In 2022-2023 we lived in the age of attention. If a crypto trader, organization or news article can get the mass attention of individuals, they hold unprecedented power.

Cardano

Cardano is slowly losing its value as a digital asset within the crypto market due to its inability to hook crypto traders.[Photo/FinancialTimes]

This fact is especially crucial for the crypto market. Take the FTX crash. Its fall was not determined by the instant withdrawals of its crypto traders but rather by the simple article posted on CoinDesk. The crypto market is a shaky industry. Any sense of danger leads to an instant mass transaction caused by crypto traders trying to save their investments.

Also, Read Cryptocurrency trading: Top African countries dominating crypto space.

Dogecoin recently surpassed Cardano taking its 6th position within the crypto market. Unfortunately, there was essentially little announcement from the crypto exchange. Blockchain technology, Web3, digital assets and the crypto market run on their ability to gather attention from individuals. Massive demand for Bitcoins caused them to increase their value exponentially. Ultimately Cardano may have superior blockchain technology, but its inability to acquire attention will be undoing.

Cardano’s plan for 2023

Cardano has announced that it still intends to honour its various promises during 2021 and 2022. One such promise is the arrival of nonsynthetic stablecoins. The concept behind it is generally familiar, which ADA investors have longed for two years. These digital assets will likely increase its DeFi functionalities, effectively increasing its speed within Africa’s crypto ecosystem.

Cardano halted this upgrade due to the increasing difficulty for crypto exchange platforms to maintain the 1:1 ratio of stablecoins to the US dollar. This will be a big step for Cardano, and may redeem itself and climb up the ladders of the crypto market once more.

The second initiative Cardano has promised is its attempt at network scaling through Vasil’s hard fork. This is another hurdle, as top blockchain networks such as Bitcoin and Ethereum have highlighted the technical concerns of network scalability. According to them, it diversely affects the blockchain network transacting daily. Cardano has expressed willingness through their preparation for Hydra, a layer two scalability solution. Hydra aims to improve transaction speed through low latency and high throughput without giving low transfer rates.

Conclusion

Cardano has showcased its superiority as a blockchain n network and its initiative to assist Africa’s crypto ecosystem, but its slow pace is wanting. The crypto market is built on functionality, transparency and attention.

Shiba Inu and Dogecoin have significantly risen since their area of expertise surround the constant interaction with crypto traders in other sectors apart from the crypto market. Their diverse nature allowed both cryptocurrencies to be solely dependent on crypto traders. Cardano may have superior blockchain technology as a digital asset, but it still has some way to go within Africa’s crypto market.

 

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