Key interoperability milestone nears on Cardano as EVM-compatible Layer 2 launches
Cardano might be set to hit a major interoperability milestone amid the debut of Milkomeda, an EVM-compatible Layer 2. The Milkomeda C1 mainnet is expected to launch on March 28.
Think AVAX C Chain, but for Cardano. When most of us have been talking about the dozens/hundreds of dapps coming to Cardano we weren’t even really factoring this one in. With a high TPS EVM compatible layer 2 coming to Cardano within days, things are legit going to get wild https://t.co/7dZvXt5tBh
— ADA whale (@cardano_whale) March 26, 2022
In late February, Milkomeda, a Layer 2 Protocol (Rollups) delivering EVM capabilities to non-EVM blockchains in collaboration with Nomad, a novel interoperability protocol, launched a bridge testnet between Cardano and Ethereum. Now, the bridge is expected to go live in mainnet.
Once deployed, assets can be sent back and forth between the two blockchains via the bridge. Milkomeda will work to achieve both sidechain and multi-blockchain interoperability visions.
Users holding tokens on the connected chain can move these assets to Cardano and vice versa, simply by wrapping them on the sidechain that links the two blockchains. These tokens become native assets on Cardano mainnet and perform the same functions as native assets on Cardano, once wrapped.
ADA price action
ADA was trading at $1.12 at the time of publication, up 3.05% on the day. By market value, ADA is the seventh-largest cryptocurrency, with a 28.79% drop in the last seven days.
After a drop to the $1.07 level the day before, ADA recovered to highs of $1.14 as seen at press time. ADA has rallied more than 80% since hitting lows of $0.80 on March 15. ADA rose above the crucial barrier at $0.95 to climb higher.
As it stands, ADA might be forming a bullish pennant that might lead to a continuation of its upside move. In this case, the next barrier is at $1.52, while support remains at $0.95.
IntotheBlock analytics reports increasing accumulation across the board in different tier addresses. The on-chain analytics firm notes that addresses holding 10-100 ADA and 100,000-1 million ADA have increased their balances by 12% and 11%, respectively, since March.