TL;DR
- Justin Bons, founder of CyberCapital, suggests that blockchains like Cardano should learn from the strategies implemented by Solana.
- Bons advocates for competing platforms to adopt aspects such as bot activity and low fees from Solana, arguing that high bot activity can equate to increased usage, benefiting the blockchain economy.
- Cardano may face a turning point, emphasizing the importance of its response to the 50-day EMA and potential support at $0.4240 for a price reversal.
Justin Bons, founder of CyberCapital, has put forth a challenging proposal that has garnered attention in the cryptocurrency industry. He suggested that Cardano (ADA) and other layer 1 blockchains should take note of the strategies implemented by Solana (SOL). This assertion, made in a context where each platform seeks to stand out with unique advantages, has sparked discussions about the future of Cardano.
Bons advocates for a different approach, proposing that instead of criticizing Solana for its bot activity and low fees facilitating arbitrage, competing platforms like Cardano should adopt these elements. He argues that high bot activity equals increased usage and that the blockchain economy should not be affected by the nature of transactions, as long as the corresponding fees are paid. Bons compares this situation to the stock market, where bot activity has proven beneficial, suggesting that blockchains should follow a similar approach.
Instead of criticizing SOL, alt-L1s should emulate it
Yes, I am talking about you, ADA, HBAR, ALGO & EGLD!
Upset about the amount of bots? Attract more bots! Upset about low fees enabling arbitrage? Lower the fees!
Try & learn from SOL's success instead of blindly attacking it
— Justin Bons (@Justin_Bons) February 4, 2024
Bons Shifts from Criticism to Support: Why Should Cardano Imitate Solana?
Regarding the current situation of Cardano, it could encounter a potential turning point. ADA is interacting with the 50-day EMA, a crucial indicator to determine the immediate trend direction. The recent price drop below this level indicates a short-term bearish outlook. However, the possibility of a price reversal depends on ADA’s response to this key technical level, with support at $0.4240 presenting an opportunity for an eventual turnaround.
Bons suggests that, to replicate Solana’s success, Cardano could consider reducing fees and attracting more bot activity, which he sees as an indicator of network utility. Although this perspective has generated criticism, especially regarding network congestion and security risks associated with high bot activity, Bons maintains that networks should not discriminate between different types of activities, as long as they contribute to the overall utility and economy of the network.
It is noteworthy to highlight Bons’ shift in attitude towards Solana. Moving from a critical position to one of support, which has caused some skepticism in the community. Nevertheless, Bons asserts that his stance is based on truth. Regardless of its popularity, and underscores the importance of exploring innovative approaches in the competitive world of cryptocurrencies.
