Cardano ($ADA) developer Input Output has proposed increasing the network’s block size by 11% from 72 KB to 80 KB after network load surged above 90% with the launch of a popular decentralized finance (DeFi) platform.
In a tweet, Input Output noted the update’s proposal comes as it works on increasing Cardano’s network capacity. With the upgrade each block would be around 11% larger, meaning the blockchain would be able to accommodate more transactions.
Track live crypto price of 10000+ coins!
Blocks on the blockchain, it’s worth noting, are batches of confirmed transactions recorded on the blockchain. A larger block size means more transactions can be included within it, so the network can accommodate more transactions.
Input Output also proposed an increase to the performance of the Cardano blockchain’s smart contract platform Plutus, saying script memory units per transaction would increase to 14 million from 12.5 million. These script memory units are the data that can be included in a single transaction.
The proposals come in a bid to increase transactional volumes on Cardano as its decentralized finance scene grows. As CryptoGlobe reported, the cryptocurrency’s network load started surging between January 14 and 15, weeks after the launch of the network’s first usable DeFi application MuesliSwap, which went live after conducting an under-the-radar offering and got to over $1 million in total value locked in two days.
Cardano’s blockchain load seemingly started surging ahead of the launch of SundawSwap, a “native, scalable decentralized exchange and automated liquidity provision protocol.” The exchange is backed by cFund, Alameda Research, and Double Peak Group. The load peaked well above 90%.
Since its launch, SundaeSwap has seen the total value locked on its platform explode to surpass the $72 million mark, while MuesliSwap’s total value locked has since swollen to surpass $4 million. In total, DeFiLlama data shows DeFi on Cardano is currently close to having $70 million of total value locked.
Notably, a notice on SundaeSwap’s website notes that the Cardano network is now “extremely congested” and as a result token swaps “may fail or not go through until congestion decreases.”
CryptoCompare’s latest Asset report has shown that in December the number of addresses holding Cardano grew to a new all-time high of 4 million. The report detailed the 4 million figure includes a significant decline in the number of traders holding the cryptocurrency, which plunged 29.4% from 981,000 to 692,000. Long-term holders, the report adds, grew 5.78% to 279,000 last month.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Pixabay