In a quiet overall crypto market, Cardano (ADA) is able to stand out positively and reaches a two-month high. The reason is the announcement that the upgrade Alonzo will be launched in September.
Cardano (ADA) is trading above USD 1.80 for the first time since the beginning of June and is currently outperforming Bitcoin (BTC) and other important altcoins. The reason for ADA’s interim spurt can be found quickly: Cardano founder Charles Hoskinson took to Twitter to make an “announcement of an announcement.” He said that they will be able to say when the Alonzo hard fork is coming, which will enable smart contracts on Cardano. Hoskinson promised the timing would be before Cardano Summit 2021, which is announced for September, so far without a more concrete date.
Why is Alonzo so important at Cardano?
Since March, expectations at ADA have been stoked toward Alonzo, and since April, Alonzo has been tried out in a testnet at Cardano. As the most important innovation, Alonzo will bring Smart Contracts to Cardano and thus allow to build ADA DeFi projects. Previously, it had been hoped that Alonzo would launch in August, but Cardano investors seem to be fine with the delay of a few weeks.
Observers note that Hoskinson chose a good day for ADA to make his announcement. That’s because a parallel record-breaking hack rocked the DeFi division. The equivalent of $600 million went missing from Poly Network and, according to findings so far, a flaw there was exploited, which lies in the cross-chain functionality. Cardano also comes with such functionality, actually technologically incompatible blockchains and ecosystem to connect. But Cardano sees itself as a strictly scientific project and tests upgrades rigorously. This concept has lured many developers towards ADA and it is commonly expected that with Alonzo Cardano will be able to stir up the market for DeFi in the long term – without attracting negative attention due to security gaps.
Conclusion: ADA on the rise – waiting for Alonzo
Cardano has managed the feat of rising to the TOP 10 of the most capitalized cryptocurrencies even with limited functionalities. With Alonzo, ADA could actually catch up with Binance Coin (BNB) and, prospectively, Ethereum (ETH). This is because high-revenue ecosystems for DeFi have already established themselves around BNB and Ethereum, and this is where Cardano’s supporters sense good opportunities to quickly gain market share with a technologically superior overall package. For the moment, however, ADA’s attention is focused on when the time schedules for Alonzo will be further concretized.
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