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The 2022 bear market has caused major headaches for cryptocurrency holders. Cardano (ADA) has seen a decline of 78% in the past 12 months. But 2023 could be a turning point for the altcoin.

In 2022, even with lower prices, gimbal managed to undergo a major update: the hard fork Vasil. The upgrade came to the altcoin’s network to improve the performance of the cryptocurrency by increasing its scalability.

Additionally, Vasil enables hosting of decentralized finance (DeFi), smart contracts, and other dApps segments, which has allowed Cardano to expand into key areas of the crypto market.

Thus, the ADA blockchain becomes functional for many sectors that could be bullish catalysts for Cardano in 2023.

Stable Coins

Undoubtedly, stablecoins are the fastest growing assets in recent years due to their low volatility. Stable assets are used by all categories of investors, whether beginners or confirmed.

Stablecoins are among the strengths of the Ethereum (ETH) network, accounting for a large portion of major altcoin gas prices.

At the time of this writing, three stablecoins are in the top 10 by market capitalization, accentuating the potential of these assets.

With the arrival of Vasil, Cardano is poised to enter this realm and leverage the use of its blockchain. By 2023, cryptocurrency holders can expect at least two stablecoins to launch on the ADA network.

USDA stablecoin is first on this list. It will maintain its peg to the US dollar by being backed by fiat assets.

Anzens, one of the teams responsible for launching the stablecoin, has partnered with a US-based regulated financial services firm. Accordingly, it will make cash deposits with the USDA in accordance with regulations.

The other 2023 stablecoin on the ADA network will be Djed. It aims to keep its value as close to $1 as possible by leveraging Cardano’s smart contract design.

In order to achieve this goal, Djed maintains a base currency reserve while mining and burning other stable assets and reserve currencies to contain fluctuations.

Cardano and Africa

The year 2023 will also see the advancement of Cardano’s work on the African continent.

The altcoin team has successfully signed contracts with African governments, like Ethiopia, for example, where Ethiopian developers can apply blockchain technology to the country’s agricultural industry.

In case Cardano developments expand in Africa next year, mass adoption may come to ADA.

The continent could also see an application for decentralized finance (DeFi), considering that the difficulty of banking access for Africans is enormous.

A more pronounced presence of Cardano on DeFi could make it Africa’s blockchain of choice for new applications in this space, increasing not only adoption but also on-chain cryptocurrency activity.



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