Cardano is less than one month away from finally deploying its Alonzo smart contract capability upgrade that will enable the development of decentralized applications on the platform.
High anticipation in the crypto community ahead of the launch has led to speculation that ADA is on the verge of the biggest breakout in its history.
In the last 24 hours, ADA breached the $1.50 price level for the first time since July 08, in a move that has been termed as the coin already showing signs of a raging rally.
According to David Gokhshtein, CEO of PA Coin and member of Forbes Financial Council, ADA is going to have an outstanding performance in the coming weeks as a result of the smart contract launch.
“$ADA is going to do well in the coming weeks. Smart contracts would give Cardano a super boost.”
IOHK: Smart Contract’s Public Testnet Is Live
Hong-Kong-based research and Development Company behind Cardano’s development IOHK announced Friday that it has successfully spun up the last color-coded stage of the Alonzo, dubbed Alonzo Purple.
The company has also begun the process of onboarding new users to the testnet, which will be the first public testnet with smart contract capabilities.
“With the support of our OG community testers on the Blue and White phases, #AlonzoPurple will be the first fully public Cardano testnet to support #smart contracts.”
Cardano’s major shortcoming so far has been its inability to support the development of smart contracts, unlike Ethereum which is the world’s main dapps ecosystem.
Cardano’s third-generation blockchain technology, according to founder Charles Hoskinson, will seamlessly accomplish what Ethereum failed to do (and therefore trying to upgrade) and is already way ahead in development.
Ethereum, whose market share Cardano has been eying since its inception, has a market capitalization of $363 billion, which is over 7 times more than Cardano’s $50 billion.
Why the Price of ADA is Likely to Soar Soon
Analysts have speculated in the past that in the next year, the price of ADA could double if the launch of smart contracts picks up fast.
Additionally, in July 2020, Hoskinson promised that Cardano could have thousands of DApps running on its ecosystem by the end of 2021. So far, the IOHK team has been able to deliver on various promised upgrades as outlined on Cardano’s roadmap.
DApp developers on Ethereum have in the past migrated to other blockchains including Binance’s Smart Chain. The entry of Cardano’s smart contract and its promised capability to bridge the ERC-20 token standard might trigger a wave of migration from Ethereum to Cardano.
Moreover, the hype around Cardano and the affordability of ADA right now is highly likely to attract more investors who hope to get in early on a good deal that could appreciate as high as Ethereum in the future.
Other developments include ADA’s recent monumental listing in Japan, adding it to the small list of cryptos approved in the country. The listing will allow Japanese citizens to buy ADA from crypto exchanges that are authorized in their country and thus exposing ADA to the crypto-friendly environment in Japan.
Meanwhile, Charles Hoskinson has joined other leaders in the cryptocurrency industry to protest against the proposed crypto tax rule, which has been a hot topic in the space since the beginning of the month.