Algorand is now on Cardano? Decoding the true picture

Charles Hoskinson, the co-founder of IOHK (Input Output Hong Kong), tweeted that Algorand was now on Cardano in a rather dramatic manner. Hoskinson responded to a tweet announcing that Milkomeda, a layer 2 protocol, was now live on Algorand.

Here’s AMBCrypto’s Price Prediction for Cardano(ADA) for 2022-2023

Getting into the real details

Cardano and Algorand are both examples of non-EVM blockchains, meaning they do not have the Ethereum Virtual Machine functionality. To such blockchains, Milkomeda exists to provide interoperability service and bring EVM functionality to them. 

A recent tweet made by the protocol made the announcement that the A1 Rollup was successfully deployed on the Algorand mainnet.

To further serve the Algorand ecosystem, Cardano-based DEX Blueshift has partnered with Milkomeda to offer its DEX model through the use of Milkomeda’s A1 Rollup. The Blueshift protocol has given the Algorand ecosystem access to the DEX model built on the Milkomeda Cardano C1 sidechain.

When the architecture of both chains is examined, it is easier to comprehend the significance of the Milkomeda A1 rollup for both Cardano and Algorand. 

Interoperability and communication problems arise because Cardano uses a UTxO architecture while Algorand uses an Algorand Virtual Machine (AVM) architecture.

In fact, this is the main problem facing the blockchain industry. With the A1 rollup, L2 protocols like Milkomeda are attempting to address this issue.

Falling and falling

The price movement of ADA has not been great lately. A daily timeframe price chart examination revealed that the price has been falling. A price range made it possible to see that ADA saw a significant decline in May, losing more than 50% of its worth. Its price dropped from roughly $0.87 to between $0.6 and $0.4.

Additionally, it was noticeable that ADA had dropped from its previous support level of $0.42 and $0.41 to approximately $0.351.

It could be seen that the area of support had changed into resistance. The price was at $0.354 at the time of writing, up 1% over the previous trading period. All in the daily timeframe.

Source: TradingView

Bullish sentiment persists

The price of ADA was still drawing some bullish sentiment despite the downward trend. Santiment data showed that the ADA’s weighted sentiment index had a 0.37 score. When compared to other assets, ADA had the third-highest level of surrounding optimistic sentiment.

Source: Santiment

It has been a significant obstacle for the crypto and blockchain industry to ensure that different blockchains can communicate with one another seamlessly.

There have been a number of proposed protocols to solve this issue, but no one has come up with a truly groundbreaking solution yet. The crypto ecosystem will be able to grow and develop in exciting new ways once the interoperability problem is resolved.