- Cardano Hydra protocol just recorded a 1 million TPS in a testnet mode.
- With a high-performant protocol, demand for ADA will grow, fueling an ATH retest.
Hydra, a scaling protocol on the Cardano blockchain, has clinched a new milestone: surpassing 1 million Transactions per Second (TPS). With this new achievement, Hydra is now one of the fastest protocols in the blockchain ecosystem. ADA, the native asset of the Cardano blockchain, stands to benefit from Hydra’s achievement.
Hydra’s Journey to 1M TPS
Over the past few years, Cardano has consistently ranked among the top ten most valuable digital assets by market capitalization. It is one of the fastest layer-1 networks in blockchain and boasts impressive TPS capabilities.
BREAKING: 1,000,000 TPS achieved on hydra!
Cardano is just getting started! pic.twitter.com/JlCNHFpP8C
— Dan Gambardello (@cryptorecruitr) December 4, 2024
However, the emergence of blockchain interoperability prompted most chains to improve their scalability. The Cardano network developed the Hydra Protocols, a scalability solution to remain competitive among other smart contract blockchains.
Per a CNF report, the layer-2 scaling solution aims to facilitate mainstream Decentralized Finance (DeFi) adoption. Technically, Hydra is designed to improve transaction speed and reduce delays by processing certain operations off-chain.
This design enables concurrent transactions using unique structures known as “Hydra Heads” or state channels. When the protocol comes online, these transactions are bundled together and registered onchain.
As CNF reported, developers recently tested the classic video game “Doom” on Hydra, showcasing the platform’s ability to handle real-time applications.
The protocol’s transaction strength grew with the progress of the Hydra Doom tournament. Today, the team announced that Hydra had achieved 1 million TPS with over 25,000 concurrent gamers. This achievement debunks previous claims that the protocol could not reach the milestone.
It is important to note that Hydra’s new record is in a game test. The protocol’s theoretical throughput will be tested in a real-world simulation, and people will transact on it.
As revealed in a CNF post, the Hydra team continues to enhance improvements in network reliability. They also increased their efforts to run the Hydra head-on preview to ensure that empty decommits did not cause serious issues.
Bullish Developments on the Cardano Ecosystem
Meanwhile, Hydra’s 1 million TPS milestone coincides with increased on-chain activity in the Cardano ecosystem. The well-known economist Benjamin Cowen revealed this positive outcome for the ecosystem in an X post.
Cowen shared a chart indicating a daily surge in unique addresses active on the Cardano network. The chart illustrates that the number of active addresses on the Cardano network has increased substantially recently, reaching over 100,000 distinct wallets.
Consequently, robust user activity has fueled a bullish rally in ADA. The price reached a multi-month high of $1.32 before retreating to approximately $1.22 at press time. Continuing the ongoing bullish trend based on what Hydra innovation will usher in could ignite further price rallies.
Some analysts set a target of $2.453 in the near term, while others predict ADA might rise to $10. As of writing, the coin is up 1.72% to $1.2016.
