ADA Falls as Cardano’s Smart Contracts Hit Roadblock

Altcoins Cardano Smart Contract
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Fredrik Vold
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: Adobe/Skórzewiak

 

The price of Cardano’s native token ADA failed to continue its rally and is now down by almost 15% from its all-time high, reached five days ago as reports have been circulating about users being unable to make swaps on the first-ever decentralized exchange (DEX) built on Cardano’s “Plutus” smart contract platform.

At 09:45 UTC, ADA, ranked 3rd by market capitalization, was down by more than 9% over the past 24 hours to trade at a price of USD 2.63. Today’s drop also means that ADA is now in the red over the past 7 days, with a drop of almost 4%. However, the price remains up nearly 78% for the month, by far outperforming its smart contract competitor Ethereum (ETH), as ETH rose by 19% over the same period.

Other cryptoassets from the top 10 list are down 2%-9% today.

ADA price chart:

 Source: CoinGecko

Despite early excitement surrounding Cardano’s smart contract-enabling “Alonzo” upgrade, a number of users have reported problems with using the first decentralized exchange on the platform, Minswap.

Quick to comment on the issues were several figures in the Ethereum community, with for instance Anthony Sassano, writer of The Daily Gwei newsletter, sharing screenshots of discussions between Cardano community members while commenting that “ADA fanboys are finally discovering that you can’t peer review your way out of fundamental issues.”

According to the screenshots, taken from the r/Cardano subreddit, one user claimed he was unable to make any swaps on the DEX. To this, others replied that it is due to “a fundamental issue” with Cardano, and that the UTXO (unspent transaction output) model the blockchain uses “can only handle one transaction per block.”

Meanwhile, in an attempt to refute some of the allegations that have been made against the platform, Cardano development firm Input Output also took to Twitter to publish a thread on Sunday where it took aim at what it called “outright FUD and misinformation” surrounding Cardano’s smart contract functionality:

“And to be clear, dapps [decentralized applications] are NOT limited to 1 transaction per block. By designing your service or application with multiple UTxOs, you can enforce more parallelism. This is inherent and – we believe – one of the advantages to eUTxO design as we have implemented it in #Plutus,” Input Output wrote about the allegations that had been made against the platform.

The public testing phase for the DEX has now been halted, and users who try to open Minswap are met with a page saying that the team has had to “shut down our testnet temporarily,” and that a post-mortem report and a proposed scaling solution will be published “in the next few days.”

___

Learn more:

– 6YO Cardano Still Compensates Lack Of Adoption With Plans & Hopes
Ethereum Needs to Try Harder To Keep Its Dominance in a Multichain Future
Cardano’s Hoskinson Keeps Bashing Ethereum As ADA Outperforms ETH

More Articles

Blockchain News
Winklevoss Twins’ Crypto Exchange Gemini Mulls Stock Market Debut
Shalini Nagarajan
Shalini Nagarajan
2025-02-07 05:34:48
Bitcoin News
Utah One Step Closer to Becoming First US State with Bitcoin Reserve
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-07 04:48:13
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors