The price of Cardano's native ADA token failed to continue its rally and is now down nearly 15% from its all-time high, reached five days ago, as reports circulated about users being unable to make exchanges on the first decentralized exchange (DEX) built on Cardano Cryptocurrency (ADA) smart contract platform “Plutus”.
At 09:45 UTC, ADA, ranked 3rd by market cap, is down over 9% over the past 24 hours to trade at $2,63. Today's drop also means that ADA is now in the red for the past 7 days, down nearly 4%. However, the price remains up nearly 78% on the month, far outperforming its Ethereum token (ETH) smart contract competitor,
since ETH rose 19% in the same period.
Other top 10 cryptoassets are down 2%-9% today.
Cardano Token Price Chart (ADA):
Despite the initial excitement around Cardano's smart contract-enabled “Alonzo” update, several users have reported issues with using the platform's first decentralized swap, Minswap .
Quickly several figures from the Ethereum token (ETH) community made up the issues, sharing screenshots of discussions among members of the Cardano cryptocurrency (ADA) community.
According to the screenshots, taken from the r/Cardano subreddit, a user stated that they were unable to make any exchanges on the DEX. To this, others responded that it is due to “a fundamental problem” with the Cardano Cryptocurrency (ADA), and that the UTXO (unspent transaction output) model that the blockchain usa “can only handle one transaction per block.
Meanwhile, in an attempt to refute some of the allegations that have been made against the platform, cryptocurrency development company Cardano Input Output also took to Twitter to post a thread on Sunday where it took aim at what it called “FUD total and misinformation” about Cardano token's smart contract functionality:
“And to be clear, dapps [decentralized applications] are NOT limited to 1 transaction per block. By designing your service or application with multiple UTxOs, you can impose more parallelism. This is inherent and we believe one of the advantages of the eUTxO design as we implement it in #Plutus ”, wrote Input Output about the claims made against the platform.
The public testing phase for DEX has now been stopped, and users trying to open Minswap are greeted with a page saying that the team had to “temporarily shut down our testnet” and that a post-mortem report and a proposed scaling solution will be published “in the coming days”.
