Cardano Has Bullish Catalysts Now
ADA, the native currency of Cardano, formed a classic bearish ‘head and shoulders’ pattern weeks back (I explained that in this article). The cryptocurrency was really struggling to achieve a renewed rally as it was trading below the 50-day moving average and 99-day moving average. Many analysts predicted a bullish-to-bearish trend reversal for ADA which had outperformed BTC and ETH in this bull run so far. In the crypto market, the performance of altcoins is often dependent on BTC and this time BTC showed a new vigour and started to trade above its 200-day moving average. ADA also crossed its crucial 1.4 USD resistance quite swiftly. The cryptocurrency is currently trading above 2.1 USD and dethroned BNB from the number three rank as per market capitalization. What worked for ADA?
Cardano’s founder Charles Hoskinson, a few days back, announced that Cardano smart contracts were coming soon. Today, Nigel Hemsley, head of delivery at Cardano, revealed the release date of Cardano’s Alonzo Purple upgrade. Alonzo will bring the smart-contract capability to Cardano after a long testnet. This upgrade will be released on September 12 and Cardano will finally achieve much-anticipated capabilities. This will also ensure completion of the Goguen era of Cardano and should start Basho – the 4th era focused on interoperability and scalability. DeFi or decentralized finance applications will also run on the blockchain after the launch of the Alonzo mainnet.
Input Output (IOHK), a blockchain engineering company founded by Hoskinson and focused on the development of Cardano, launched ‘Project Catalyst Fund6’ with $4m worth of ADA today. It is an ambitious fund that will help build Cardano’s ecosystem and aims to fund 150 projects. The IOHK official blog post says that “funded proposals can also benefit from an invitation to join our successful Plutus Pioneer training program, where participants can learn how to implement Plutus smart contracts into their application.” Cardano has a vibrant community and the supporters are really excited about the developments.
Image Source – Cardano ecosystem
While the launch of smart contracts is extremely bullish news for Cardano, another recent development must be noted. The Cardano Foundation minted the world’s first Non-Fungible Tokens of Appreciation (NFTAs) recently and published a detailed blog post. These tokens are different from Ethereum tokens as there is no involvement of smart contracts and these are native tokens. The NFT standard is called CIP 721. The NFTAs were given to 10 key developers of Cardano as tokens of appreciation. The market buzz is that many NFT projects are coming up on this blockchain.
World Mobile, an Africa based proposed mobile network is building a hybrid public-private chain in partnership with Input Output Global (IOG). Cardano will be the public chain and World Mobile Chain will be the private sidechain. The value settlement will take place on Cardano by default. IOG will bank the unbanked and World Mobile will connect the unconnected. The partnership was announced in April 2021 but the launch of the smart contract capability on Cardano may give World Mobile the opportunity to become the killer DAPP of Cardano very soon.
Unlike other projects, Cardano relies upon academic research and so the development has been really slow. While new projects like Algorand, Solana and Avalanche displayed rapid execution with continuous raw experiments, Cardano focused on providing a scalable finished product and the team published so many research papers regarding the underlying technology. The approach of Cardano has been significantly different and most probably a certain investor class is very optimistic with the project due to this. The recent surge in interest can really fuel up the demand for ADA and take it to a new all-time high. Closely observe the daily candle closings for the next few days and DYOR before investing.
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