In the past two years, there had been phenomenal growth in the decentralized finance (DeFi) sector even though the crypto winter season was on.
Within this sector, the lead DeFi protocol is that of Cardano while the number two and three spots are secured by Lido Finance and Aave networks.
Charles Hoskinson on DeFi and Decentralized Identities
According to the CEO of Cardano, Charles Hoskinson, DeFi shall play a crucial role in the development, growth, and strengthening of the crypto space.
These were the words that Hoskinson said while responding to questions thrown at him by the virtually present participants.
While explaining his argument, Cardano’s CEO first of all made mention of the newly implemented travel rule by the Financial Action Task Force (FATF).
He explained that a user would be unable to access assets if the person had moved assets into a self-custodial wallet out of an exchange.
Digital Identities for Transactions
Hoskinson opined that this problem can be solved by affixing ‘decentralized identities’ with the transactions.
He suggested that this solution can be applied to transactions irrespective of whether they have been executed either by regulated or non-regulated entities.
According to Hoskinson, the decentralized industry is already acquainted with the such a concept and hence the idea of ‘digital identities’ makes more sense.
Future Prospect of DeFi
Explaining further the dynamic role of DeFi in the development of the crypto industry, Hoskinson said that DeFi will become an area of competition.
He said that it will take about two years that the entire industries of the world will see DeFi as the ultimate competitor.
Cardano Rebounding Ahead
As regards his company’s native digital currency, Cardano, Hoskinson was hopeful of rebounding ahead.
In the past 24 hours, a value surge of 4% has occurred for Cardano and the asset is now swapping hands at $0.319.
The coin is almost there to break beyond the crucial resistance point of $0.320. If this happens, then Cardano would likely take the opportunity of increasing its value above $0.333.
Watchful Against Bearish Momentum
However, Cardano (ADA) has to keep a close eye on the bearish momentum. Any further bearish sentiment affecting the ADA price could lead ADA below the support level of $0.315.
In that process of incurring value loss, ADA would also likely break beneath its Exponential Moving Averages of the past 50 and 30 days.
On the other side, if ADA is able to keep the bullish momentum going, then further value increases are expected. If bullish momentum continues then it wouldn’t be too far to see ADA crossing its value above $0.298.
To keep the bullish momentum intact, ADA must need to ensure that at the end of daily trade without any declines. Otherwise, the declines would certainly invalidate this momentum leading the coin’s value below $0.285.
For now, things are not going in favor of ADA as whichever card it has tried throwing in the crypto market has not worked out well.
The platform reportedly launched Vasil, the upgrade for the entire Cardano blockchain hoping it would bring masses and success to their protocol.
However, things did not work out the way Cardano developers had expected them. Recently, Cardano has announced putting a halt on the development of their stablecoin.
This has also acted as a negative factor for Cardano, showing that the platform is currently struggling to earn a strong rally in the market.