If there is an “old school” cryptocurrency that benefits from this year 2021 it is undoubtedly the ADA of the Cardano project. A coincidence of timing ? Or a perfect synchronization conducted to the rhythm of a competition turtle ? In any case, this increase marks its deployment being finalized within this bull market. This makes it one of the biggest successes in YTD among the major projects in this ecosystem. And allows its historical investors-who have not moved on in the meantime-to record substantial gains of around 15,500%. But is it just the beginning ?
It is difficult to make a place for yourself among the multitude of projects that populate the universe of cryptocurrencies. And even more so when the goal is to offer an alternative to Ethereum, drowned in the middle of the horde of killers waiting their turn. A sector where the Cadano project is a grandfather if we count in crypto years. And who has to face dashing competitors like Solana and her currently exploding SOL. Or the Avalanche network’s AVAX, which is investing tens of millions of dollars in its emerging DeFi ecosystem.
A dynamic within which the ADA cryptocurrency has not failed to be noticed. This with recent announcements that are beginning to look like concrete advances for future users. And institutional investors increasingly numerous and enthusiastic to place some balls. This mainly because it is now in very good 3rd place on the podium of this sector.
A position acquired following good performances recorded since the beginning of this year which show +2350% in YTD. With as its last flight, a rise of more than 10% that has just allowed it to validate a new ATH. A new record reached overnight just above the symbolic $ 3 mark. But that however requires a confirmation in daily time unit to turn into an effective purchase signal.
Smart contracts arrive on Cardano
But before talking about returns, it seems worth asking the question of why. And everything seems to indicate that this increase is related to the announcement made yesterday on Twitter. The latter making official the effective implementation of the long-awaited smart contracts on the Cardano network. Finally, more specifically on the test version of his latest and umpteenth hardfork codenamed Alonzo. Because other steps are still to be expected before this is made functional. And in particular the upgrade of the main network of Cardano scheduled for the next 12 September. Could this be the date of the next ADA increase ? A simple assumption that does not in any way constitute financial advice, we agree…
« Since 20: 20 UTC today, Cardano’s Testnet officially supports smart contracts developed under Plutus. Final tests and integrations to come. OPS will now upgrade their core network nodes. Then, next stop … upgrading the main network. Still on track for September 12th. Forward ! “- Input Output
Smart contracts that DeFi what the cinder block is to the construction of a house. An essential element for the development of protocols and other decentralized applications (dApps) for economic and/or financial purposes. And in the case of Cardano, this comes through the use of its programming language named Plutus. A system that does not offer current compatibility with Solidity and the “virtual machine” of the Ethereum network (EVM). And according to the information circulating, there is no suggestion that this may be possible for several years. Probably the next project of what will be a multi-chain option that already seems very late.
To new heights for the ADA ?
In any case, this new THA allows the ADA to stay in the race of the current increases in the sector. This is not necessarily the case for projects like Tezos (XTZ), decidedly lagging behind with only 55% on the counter in YTD. A move that puts Cardano in the line of Solana and its cryptocurrency SOL which has also just registered a new ATH above$128 the day before yesterday. Or ETH which confirmed the break of its resistance of$ 3350 towards new highs very likely.
But then, why only $ 3 for this ADA ? Perhaps because its supply of 45 billion units (and currently 32 billion in circulation) is significantly higher than the average of other projects in the sector. And that even with a marketcap of $ 98.1 billion and a 3rd place in the ranking of cryptocurrencies, its unit price remains low. Because it would have to have its market capitalization reach that of Ethereum (442 billion) for its price to hope to exceed$11. And obviously, Cardano is not (yet ? Ethereum !
