Cardano (ADA) did manage to work past $3.10 on September 02, 2021; however, pulled back and worked out a correction.  Where will this wave likely stop? Fibonacci retracement levels show support at $2.72, $2.39, and $2.13.  The expected target price is $3.50.

Cryptocurrency is a new market.  It is highly speculative.  Irrespective of how promising things might be, anyone who is investing in crypto, should be prepared to lose it all.  Almost all sectors, whether business, arts, science, or music, are adopting blockchain technology rapidly.

Cardano’s Mary hard fork makes it possible for the orderly transition of Cardano from a single asset ledger supporting only ADA into a multi-asset ledger. Thus, ledger users will be able to support ADA coins and any other future token created on the Cardano blockchain. Users are empowered to develop their own unique tickets, including NFTs, to transact directly on the Cardano platform. Now, all that users are looking at is a place to trade the custom tokens and assets.  Cardano does not have an exclusive decentralized exchange for its asset type.

Meanwhile, there is Cardax, a decentralized exchange that allows users to trade ADA for any Cardano Native Token. Cardax is expected to launch when its external audit is finished. This will probably be in Q4 2021. However, they do not have a specific date yet.

The Cardax White Paper by Ryann Morrison, the details of which are subject to change at the time of reporting, stated, Cardax being a decentralized exchange that the EAMM Protocol powers, focuses on providing liquidity to projects which issue native tokens on Cardano.

Cardax focuses on combining the order book model and the AMM model.  The order Book model works best with highly liquid trading pairs, while the AMM model works better for illiquid pairs as long as there is enough liquidity around a price to fill a significant market order.

This model permits anyone to become a market maker by either starting a liquidity pool or participating in an existing one by minimizing slippage.  This model reduces the risk of impermanent loss, provides more price transparency, and allows token issuers to create a new pair without needing a big amount of capital to serve as collateral.

Cardax reportedly is trying to be the Uniswap of the Cardano ecosystem. It is focused strengthening the Cardano cryptocurrency ecosystem.

AMM faces the problem of high entry fee. If the user does not have the ADA token then the user will only get a small portion which is illiquid. This is the main problem which UniSwap has been experiencing and Cardax is set to solve it. We will witness how it works in the forth coming days.