Key Takeaways:
- Cardano’s first decentralized exchange (DEX) SundaeSwap went live on Jan 20, and faced a flood of transactions it wasn’t prepared for.
- The Netwrok’s native token ADA lost 23% in three days, and faced losing an additional 13%.
YEREVAN (CoinChapter.com) — Cardano got its first decentralized exchange (DEX) officially following the launch of SundaeSwap on its mainnet this Jan. 20. Nonetheless, the DEX started running into technical issues right after going live.
In detail, many early users started complaining about congestion, platform errors and failed transactions on the SundaeSwap platform. Finally, the issues became so repetitive that they forced the DEX to a halt.
A called SundaeSwao “Wack AF.” Nonetheless, the team addressed the problem, with the SundaeSwap CEO Mateen Motavaf admitting that their issues have come out due to congestion on the Cardano network. Excerpts from his statement:
IF YOUR ORDER IS ON-CHAIN, IT WILL BE PROCESSED
ORDERS ARE FAILING DUE TO CONGESTION, PLEASE BE PATIENT.
said the executive.
At 0100 UTC, the team organized a Twitter Spaces AMA to answer all the questions. They also addressed the upcoming Cardano node upgrade, with Matt Ho, the chief technical officer, assuring the users that their transaction throughput would double.
Once the change happens on the 25th, we expect greater than a 2X throughput increase from strictly the memory bump by itself as additional protocol parameters become available.
the executive said.
The team also mentioned that they will address each transaction “in the order of placement” and that all orders may take days to process.
Also read: Cardano's first decentralized exchange launch boosts ADA price
While the SundaeSwap team worked to clear the congestion on the DEX, Cardano’s native token ADA plunged an additional 8% in the previous 24 hours.
ADA continued to fall
SundaeSwap difficulties could have triggered a sell-off. However, ADA’s troubles started on Jan. 18, following Bitcoin (BTC) freefall. The digital asset has lost 8% since. ADA mirrored the BTC price action and dove to $1.32 on Jan. 21.
In detail, ADA confirmed the Double Top pattern that CoinChapter reviewed in the previous Cardano report. The Double Top setup features two consecutive tops simultaneously, with a decline in between. Ahead of the SundaeSwap launch, Cardano bulls pumped ADA to $1.50, approximately the same level as the previous high.
Also read: Cardano (ADA) rallies double digits in 24 hours – what's ahead?
The Double Top is a bearish pattern that could take ADA lower than the dip between the two highs. The price action has already dropped to the $1.2 support. However, Cardano bears could dip ADA below the $1.02 support level if the pattern pans out.
