Cardano looking toward $3. Big deal? You bet!
$3 for a native asset after six years in existence may not seem like much to write home about, but there is far more to Cardano’s native asset and its recent performance than just the monetary value.
Yesterday, ADA, which is the native asset on the Cardano blockchain platform, reached a new record high of $2.89 at 9,00am during the European morning, however the reason is perhaps more interesting than the peak in value.
The reason is that many investors are now fully on board with the importance of smart contracts and their role in decentralized finance (DeFi), and given Cardano founder Charles Hoskinson’s recent announcement of the forthcoming launch date for smart contracts on the Cardano network, interest in the ADA asset is up.
On September 12, the long-anticipated upgrade to the popular cryptocurrency platform called Alonzo will take place, and ADA aims to use blockchain technology to solve real-world problems. For example, it has partnered with the Ethiopian government to track the educational progress of 5 million students on its network.
Given the multi-use nature of Cardano, smart contract availability is likely to be of great interest.
Yesterday, CoinTelegraph reported that a number of analysts, including pseudonymous chartist PostyXBT, have observed that the Cardano token had entered a “price discovery mode.” Meanwhile, David Gokhshtein hinted that ADA/USD might continue its bull run until the smart contract release takes place on September 12.
This is an interesting development for decentralized finance, especially given that Charles Hoskinson was an Ethereum co-founder, and Ethereum is basking in an enviable limelight as a technological tour de force, especially given its interaction with DeFi protocols such as Uniswap, and its smart contract capability.
Bearing this in mind, it is perhaps an interesting point to consider Charles Hoskinson’s abilities when it comes to smart contract devleopment and positioning Cardano as a comprehensive platform for many DeFi purposes.
Therefore, the September 12 upgrade is a very detailed one and as well as the smart contract functionality that the cryptocurrency world is focusing on, this upgrade also includes Plutus, a Turing-complete smart contract language written in Haskell, and a specialised smart contract language, Marlowe, designed for non-programmers in the financial sector.
Cardano’s smart contract languages allow developers to run end-to-end tests on their program without leaving the integrated development environment or deploying their code.
Given the potential opportunities, the jump to almost $3 is perhaps understandable, and one thing is for sure, that being the need for any users considering the importance of DeFi to select a high quality, regulated exchange which can operate as a stable and effective fiat on-ramp, and handle this capability when accessing the full functionality of these ever increasing DeFi protocol services.