thecryptobasic.com
The Cardano blockchain settled a transfer of over $840 million worth of assets with a mere $0.5 fee, a lower figure than most blockchains and traditional systems.
The Cardano network recently showcased its ability to settle transactions with low fees by facilitating the transfer of over $840 million in ADA for just five cents, a feat that would have been unimaginable with traditional financial systems.
The transaction occurred on March 20, with the user transferring 1.32 billion ADA. The value brought the balance on the receiving address to 1.73 billion ADA ($1.07 billion), which it still holds at the time of writing.
While on-chain data does not reveal the identity of the entity behind the transaction, the Cardano community speculates that the move likely involved a centralized exchange. This thesis harmonizes with such large transactions involving exchanges with other coins like Shiba Inu.
For context, the transferred 1.32 billion ADA represents almost 0.36% of Cardano’s total circulating supply of 35.56 billion coins. As a result, any single entity controlling such an asset could potentially move prices.
How Does This Compare Against Other Blockchains and TradFi Solutions?
While Cardano often comes under criticism, the latest whale transaction demonstrates the blockchain’s efficiency, especially in terms of network fees.
The average Bitcoin transaction fee stands at 0.000087 BTC ($5.88) at the time of writing, while the average fee for moving tokens on Ethereum is around 34 gwei (the equivalent of $2.45).
This shows Cardano offers a much cheaper alternative for users in the crypto space. Additionally, the fee is relatively cheaper than traditional solutions like PayPal or Western Union, which charges around 3% as the standard fee for large transfers.
At the same time, the Cardano ecosystem has been building out its DeFi ecosystem as another avenue to attract capital and user interest.