Cardano (ADA) well armed to find the 2 dollars

By: Bharggavi Ssayee

June 1, 2021 5:36 AM

The Cardano blockchain is fueling its weapons with the first steps towards smart contracts and decentralized applications. Alonzo derives value from ADA.

Like other altcoins, the price of ADA suffered over the past two weeks. The crypto asset's price moved away from its all-time high (ATH) of $ 2.46 on May 16. On May 26, however, the token began to rise.

Cardano hit $ 1.77. Over the past weekend (May 29 and 30), in a sluggish crypto market, the crypto-asset even showed 11% growth during the morning of $ 29 at $ 1.64. The trend is fragile, however, as for other assets.

Alonzo, Cardano's anti-Ethereum weapon

The blockchain, however, has cards in hand that could draw value from the ADA. The network today cannot compete with Ethereum, as its leaders hope. In a few months, the situation could be very different.

Thus, on Friday May 28, Cardano took its first steps towards implementing smart contracts. Thanks to this functionality, the blockchain will be fully able to accommodate decentralized applications (Dapps).

However, this integration of a major function is now initiated through the Alonzo update. This is the main novelty expected on the blockchain this year. It must bring Cardano closer to its rival Ethereum.

The publisher began deploying the Alonzo testnet on May 28. This network should be in production from the end of August. “The critical engineering path, the integration path, the coordination path and the community path are planned for the next 90 days,” announces its founder.

Major deadline for ADA in August

Charles Hoskinson indeed relies heavily on smart contracts. This feature is at the heart of Ethereum's success, which he hopes he can compete with. But in this area, ETH has a head start.

Ethereum smart contracts, launched in 2015, are a market standard. They are the keystone of DeFi on the first public blockchain. Since January 2021, decentralized finance has weighed 60 billion dollars.

With the formalization of Alonzo, Cardano can hope to restore the value of the ADA. For the moment, this effect is long overdue. As Decrypt noted, the announcement of a drop in the price of ADA followed. Saturday 29, however, the increase was at the rendezvous.

Over the past 24 hours, the native Cardano crypto asset has edged down 1.30% to $ 1.62. On the other hand, over 7 days, the trend remains positive with an increase of around 10%.