Cardano Soared 13% On Burn Mechanism Rollout Rumors

Cardano soared 13% on the burn mechanism rollout rumors and even became one of the best performers on the market in the past week as we can see more today in our Cardano news.

The Proof of stake networks leads the market as BTC and others stand behind. Avalanche recorded 30% in profits as ETH recorded 16% and Cardano 13% profits over the past week. ADA’s price traded at $0.89 as of press time and can see even more gains in the short-term with the marekt experiencing further gains.

Right after we could see further gains in the short term as the market experienced further gains. ADA’s price appreciation can be quite fueled by rumors about the potential implementation of the burn mechansim for Cardano and the news was shared on Twitter which triggered a reaction from the ADA community. The source of the rumor might also be a tweet from Clark Alesna who is a CEO of a company dubbed SAIB Inc and he even accepted a challenge from Hoskinson and said he will start production of a burn smart contract for ADA:

“It seems like no one really took Charles Hoskinson’s challenge to build a #Cardano $ADA burn smart contract challenge that he put out some time ago. So, I’m taking matters into my own hands and started to plan and code it this weekend. I’ll update you guys soon.”

The tweet and the replies suggest that Alesna was joking but the message was still taken seriously by media outlets which awaited a reply for Hoskinson. The Cardano founder, however, replied with a meme. The community seems to agree to a burning mechanism and that it will never be implemented on Cardano, saying the rumors were misleading and most of the users seem to agree that the system will bring the disadvantages right into the network, with one user noting:

“Misleading information. There will never be layer 1 chain burns. You can’t burn utxo protocol just like bitcoin. Token means layer 2 blockchain on Cardano may require burns. Have to get this clear. Why eth burn? Because they build very differently in terms of accounting model. We shall not talk about them as they are struggling to roll out decentralised proof of stake.”

Cardano soared 13% on the rumors but the data from the ADA ecosystem suggest that the network has been expanding since the implementation of the main smart contract capabilities and there are over 500 projects that are building on the network. Right now, the NFTs seem to be dominating the network and the marketplaces for the digital assets follow at a similar scale with wallets, GameFi, and decentralized exchanges.