The Cardano ecosystem is poised to explode with the introduction of its first decentralized exchange, ushering in a new age for the blockchain network.
Despite the fact that blockchain-based digital assets have been traded since 2009, a functional gap has existed between on-chain transactions and trust-based centralized exchanges. The success of decentralized exchanges has now overcome this gap.
DEXs such as Unsiwap’s constant product automated market maker make it possible to trade blockchain tokens without the use of market makers, bids, or asks. This defies centuries of financial market practice and serves as a foundation for a new decentralized financial system.
Decentralized Exchanges have also sparked a DeFi (decentralized finance) frenzy, in which people can act as their own banks and trade transparent financial products and derivatives on trustless blockchains.
The total value locked (TVL) of Ethereum increased by over 1000 percent in a year due to a convergence of fundamentals, with Uniswap accounting for a significant portion of that growth due to the blockchain network based project tokens being accessible on the automated market maker (AMM).
One of the main reasons the Cardano blockchain network was created was to bank the unbanked, and the most anticipated Cardano DEX has provided the foundation for a successful DeFi explosive growth.
The launch of the SundaeSwap may be to Cardano what the Uniswap was to Ethereum, as it would trigger a massive capital rotation that would lock massive value into the ecosystem.
Despite launching in September 2017, Cardano has been heavily chastised for failing to deploy smart contract capabilities.
In September 2021, the network launched the Alonzo hard fork, which included smart contract features. Many people have lost patience with the network’s slow progress, but SundaeSwap could change that.
The Cardano community was recently notified of an update that addresses scaling plans for 2022 as well as the creation of new Cardano-based projects. Cardano founder Charles Hoskinson cited a tweet from the briefing that showed 199 projects are now being built on the Cardano network.
SundaeSwap’s launch before of the other projects scheduled to debut would mean that the exchange has enough liquidity on hand to flow into these projects when they launch, making them accessible and tradeable, and thereby locking enormous value into the ecosystem.
On Monday, the Cardano network native token traded within striking distance of its three-week high, with the strong momentum owing to the upcoming SundaeSwap news.
Cardano is currently trading at $1.47, with a 24-hour trading volume of $4,437,040,992 USD. In the last 24 hours, Cardano has lost 3.70 percent of its value. With a live market cap of $49,397,555,702 USD, Cardano is now ranked #5 on CoinMarketCap.