It looks like the crypto market is poised to enjoy a bullish weekend as the star cryptocurrency, Bitcoin broke through another important resistance at $22,000. Ethereum is on a similar pace, leading the other top ten altcoins including BNB, XRP, Cardano and others.
Among these altcoins, Cardano is considered to be one of the major currencies that will enter the bullish momentum. Cardano’s ADA reached its ATH in 2021 and since then the altcoin has not reached that level. However, the Cardano network is driving strong fundamental and developmental activity.
Meanwhile, experts claim that the upcoming updates of Gimbal Network will fuel ADA prices. According to reports, the update is scheduled for February 11 and should happen on testnets. Whereas immediately after three days, i.e. February 14, the next update will be introduced. Upon successful update, smart contract developers on Plutus will have multi-threshold signature designs.
Charles Hoskinson: Token Consumption Increases Market Volatility
On the other hand, Cardano has a total supply of 45 billion ADA, more than Bitcoin’s supply positioned at 21 million. Hence, the community is in discussion regarding token burning which will push the price of ADA higher.
This token burning is a method used to reduce the total supply of a particular currency so that it creates demand. This will in turn fuel the price action of the currency. However, even though this method has helped many currencies, Cardano founder Charles Hoskinson opposed token burning.
This is because he thinks that this method does not create any core value for the network and he also sees this method as manipulative. Additionally, Hoskinson claims that token consumption will reduce liquidity and increase market volatility, which will impact investors.
Therefore, the Cardano network is mainly focused on upgrading its technology rather than burning tokens, which is a short-term solution.