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Cardano founder Charles Hoskinson reacts as a significant portion of ERGO (ERG) tokens moves to the Cardano network.
A recent update from Rosen Bridge confirms that the Cardano ecosystem is attracting capital from the Ergo blockchain.
Ergo is a Cardano-compatible network that enables smart contract applications. The network utilizes the same transaction model as Cardano, meaning dApps and related protocols, can run on both platforms.
While Cardano and Ergo have their respective DeFi ecosystems, the latest update from Rosen shows that investors are moving more from Ergo to tap into the opportunities available on Cardano.
Since the launch of the Rosen Bridge over the past year, analytics from the on-chain protocol show that investors have transferred 624,000 ERG to the Cardano blockchain.
For context, the 624,000 ERG coins moved from Ergo to Cardano represent 0.85% of the coin’s circulating supply of around 76.6 million coins.
Additionally, that amount will be valued at around $1.4 million, with ERG currently trading at $2.24. ERG bridged to the Cardano blockchain has the ticker rsERG and is usable across ADA-based DeFi protocols.
Cardano Founder Celebrates Milestone Amid DeFi Growth
Reacting to the latest milestone by Rosen Bridge, Cardano founder Charles Hoskinson wrote on X (formerly Twitter), “Welcome home, Ergo.” Hoskinson obviously hopes that the ERGO coins being bridged remain on Cardano for the foreseeable future.
Welcome home Ergo https://t.co/RRumkjRZFT
— Charles Hoskinson (@IOHK_Charles) February 29, 2024
Meanwhile, the increased bridging of ERGO to Cardano comes at a time when the latter’s DeFi ecosystem is thriving. This week, the total value of asset locked (TVL) on Cardano reached a new high of $438 million, surpassing the previous records set in December and early January.
The growth in DeFi reflects a rise in the price of ADA, Cardano’s native coin. ADA gained 40% in the past month, hitting a new yearly high in the process. The cryptocurrency may eventually see the widely predicted $1 price if it continues on the same growth trajectory.