Connect with us

Cardano

Alonzo Fails as a Catalyst for Cardano Price! What’s Next for ADA Price?

Published

on

Alonzo has been live on Cardano’s network for about two weeks. The narrative leading up to the hard fork was highly conformist, with predictions that ADA’s price would skyrocket after its introduction.

The hard fork, on the other hand, turned out to be a ‘non-performer with little impact on the token’s price. In fact, ADA’s price dropped to as low as $1.98 in the days following its debut. As a result, one could say that ADA, like the rest of the market’s tokens, succumbed to the negative broader market trend

Apart from that, the deterioration of on-chain metrics has had a cascading effect on the price of the alt. So, unless and until the situation improves, a price trend reversal appears unlikely.

Advertisement

On-Chain Metrics

According to CardanoScan, the network’s transaction count has remained rather stable over the last few days, despite crossing 111k on September 17th. This clearly suggests that few people have been using Cardano’s network recently.

In recent months, the average transfer value has also been trending downwards. Notably, the same had a significant surge in the first few days of September before plummeting. For that matter, the fraction of active addresses has been decreasing. During the week of September 7 to 24, the same declined from 9.17 percent to 2.45 percent.

Users who have been active are, for the most part, just trying out and testing the network at this point. One could argue that the Cardano market is now devoid of any meaningful momentum.

Advertisement

Trend Reversal on the cards?

Cardano has a slew of launches planned for the fourth quarter. With the launch of Cardax DEX, users will be able to trade ADA for other native tokens. The exchange would also have its own utility token, called CDX. GREED will also be one of the first tokens to be released on the blockchain.

Several notable projects are planned to utilize Cardano ecosystem in the next weeks, ranging from Liquid, an open-source and non-custodial liquidity protocol, to SingularityNET, a platform that allows users to design and commercialize AI services at scale. In effect, the blockchain would be used by a new set of users.

However, a significant trend reversal appears improbable until and until Cardano adoption accelerates. In fact, it would only make logical sense to expect a direct influence on the altcoin’s price if the aforementioned future events genuinely contribute to the network’s growth.

Advertisement

News Source

Advertisement

Cardano

Can Cardano ever compete with Ethereum on the smart contracts front

Published

on

The lack of trust while engaging with different parties is one of the biggest challenges that people outside the “smart world” face. Due to the lack of transparency, people end up spending a lot of time and money on intermediaries, before finalizing an agreement.

Smart contracts, on the other hand, provide a solution to the aforementioned problem by eliminating intermediaries and making the system even more transparent.

The Ethereum-Cardano dilemma

Now, Ethereum has been in the space since its inception. It is, arguably, the uncrowned prince of the smart contract space. With time, however, competition has been on the rise, with Cardano being one of the latest ones to step into the arena.

Advertisement

Ethereum’s soaring gas fee has always been a major cause of concern for people from the community. This week alone, the fee has crossed 250 gwei and 350 gwei a couple of times.

In fact, when compared to the weekly average, the fee, at the time of writing, was at a fairly higher level.

Source: ethereumprice.org

In effect, Cardano-based smart contracts can take advantage of the aforementioned vulnerability of Ethereum. If it successfully manages to do so, then smart contract clients wouldn’t hesitate to swap their networks.

Advertisement

Well, Cardano is obviously new to this space and as they say – New utility means new adoption. However, there’s hardly anything for Cardano to show yet. The number of contracts executed has been quite low.

As per Statista’s chart, the rounded transactional volume did witness a massive spike post the Alonzo hard fork. However, it hasn’t been able to sustain those levels. In fact, it has been falling sharply over the past few days.

Nevertheless, it should be noted that Cardano has entered this space at the right time. It can leisurely experiment and see what works and what doesn’t because it has the luxury of time that other platforms might not necessarily have when they decide to join later.

Advertisement

Source: Statista

Cardano is the first blockchain to be developed using peer-reviewed research and evidence-based methodologies. In effect, several analysts have already started claiming that its output efficiency is higher and better than that of Ethereum.

Now, a new bridge is being built from Ethereum to Cardano. Using this bridge, NFT creators will be allowed to easily move their non-fungible tokens from the energy-intensive Ethereum blockchain to Cardano. In retrospect, this would be great for the latter network’s adoption.

Another X-factor

Development activity is another key yardstick that can be used to assess where different networks/protocols stand.

Advertisement

Well, Cardano has been able to maintain fairly high levels on the development activity chart, relative to Ethereum. Even at the time of writing, Cardano had an upper hand when compared to its counterpart.

Thus, going forward, Cardano does have a golden chance to give Ethereum neck-to-neck competition.

Source: Santiment

However, to emerge as a winner, Cardano would have to provide top-notch cross-chain interoperability, fast transactions, and predictable fees, among other services and facilities.

Advertisement

It has started off in the right direction, but only time will tell if it can surpass Ethereum’s popularity.

News Source

Advertisement
Continue Reading

Cardano

Cardano price at make-or-break point while ADA remains indecisive

Published

on

  • Cardano price is traversing a symmetrical triangle pattern, suggesting that a 16% explosive move is likely.
  • A decisive close above the setup’s lower trend line will knock ADA down to the $1.99 to $2.10 demand zone.
  • Transactional data shows that the resistance barriers are hogging the bulls’ path.

Cardano price has been on a tight consolidative move for more than a month. However, this coiling up is a precursor to an explosive move. While on-chain metrics are all hinting at a bearish outlook, technicals suggest that there is hope.

Cardano price shows lack of buyer interest

Cardano price has set up three distinctive lower highs and five higher lows since September 21. Connecting these trend lines shows that the price action is squeezed and reveals the formation of a symmetrical triangle.

Since this pattern has no directional bias, it could break out either way. The target for this technical formation is obtained by adding the distance between the first swing high and swing low to the breakout point.

While the situation might seem black and white, it is not. Investors can expect Cardano price to breach the lower trend line first and enter the demand zone ranging from $1.99 to $2.10. 

Advertisement
ADA/USDT 9-hour chart

ADA/USDT 9-hour chart

IntoTheBlock’s Global In/Out of the Money (GIOM) model shows that the immediate yet stable support level is $2.11, where roughly 147,87 addresses purchased a whopping 2.85 billion ADA.

Although the bullish move assumes that ADA bounces off the $1.99 to $2.10 demand zone, a decisive close below this area will put these investors “Out of the Money,” further increasing the selling pressure and invalidating the bullish thesis. 

In this case, ADA might continue its descent and head toward its intended target at $1.78.

Advertisement
ADA GIOM chart

ADA GIOM chart

Further adding credence to the bearish outlook is the 60.7% decline in the number of large transactions worth $100,000 or more.

This on-chain metric serves as a proxy of high-net-worth individuals and can often help spot bullish trends. However, over the past six months, the number of such transactions has dropped from $3,500 to $1,370, indicating a reduction in institutional money flows.

ADA large transaction chart

ADA large transaction chart

While things are looking gloomy for the Ethereum killer, the demand zone ranging from $1.99 to $2.10 could be the salvation for bulls.

Advertisement

If the buying pressure increases, pushing ADA to re-enter the symmetrical triangle, there is still a chance that Cardano price will make a run at the upper trend line. A decisive close above $2.24 will put an end to the bearish thesis and indicate a bullish breakout from the symmetrical triangle, propelling ADA by 16% to $2.62.

News Source

Advertisement
Continue Reading

Cardano

Cardano Projects Say Success Comes With Interconnectivity

Published

on

  • Cardano projects assemble to share their experiences on the blockchain.
  • Four projects talk about the switch from Haskell to Plutus and much more.
  • Almost all agree that the next hard fork should come with a read-only UTXO feature.

Cardano’s project leaders have a chat. In detail, five powerhouse projects on the Cardano (ADA) ecosystem exchange thoughts and share their experiences over the time spent on the blockchain.

In particular, CTO and Co-Founder of DCSpark — Sebastien Guillemot leads the discussion. He talks with leaders from four projects on the Cardano blockchain. Specifically, these include Pi Lanningham of Sundae Swap Labs, Ben Hart of MLabs, Ilya Oskin of ErgoDex, and Dewayne Cameron of Liqwid Finance.

Together the titans swap stories about how far they’ve come on this ecosystem. One of the points of discussion is the transition from developing with Haskell to Plutus. Another core topic of discussion was the importance of a larger Cardano community in order to see growth.

Advertisement

The talk ended with possible improvements these developers and project leaders would like to see in perhaps Cardano’s next hard fork. Let’s dive in and see how these conversations went. The talk first began with a quick round of introductions.

Meet the Leaders of Cardano’s Active Projects

First up is Ben, he is a partner and Plutus consultant at MLabs, he is also the director of Cardano operations at MLabs. Ben has worked very closely with Plutus over the last 8 months along with many other different applications on the network.

Next is Pi, the CIO of Sundawe Swap Labs, his goal is to build a decentralized exchange that will serve the very core of DeFi. To him, it’s very simple: provide someone with a token to access the means to gain another token.

Advertisement

On the other side, there is Ilya, he is the lead core developer on ErgoDex. Lastly, Dewayne is the CEO and co-founder of Liqwid. He has been in the Cardano ecosystem for a long time. His journey began when he joined a catalyst project in early 2018. Since then, he has come a long way.

All four experts come from different backgrounds but one thing they have in common is the fact that they’re all familiar with developing and coding. On that note, Sebastien asked the four what their experience was like with the move from Haskell to Plutus coding.

On this matter, there was a pretty unanimous reply. Ben says that Haskell and Plutus have an interesting relationship. He says this is because of the way Plutus is built. Thus, it is a simple switch for users to swap out Haskell for Plutus. In addition, he adds that Cardano uses eUTXO, this makes it a different model from blockchains like Ethereum and is the first to do so.

Advertisement

Ilya expresses that the difference was more towards learning specifics rather than learning a whole new code. Likewise Pi also agrees on how there wasn’t much to unlearn but rather more to add on to their existing knowledge. Dewayne says that it was more of tailoring to a new design pattern which was easy enough to get once you get going.

Cardano Is Set to Grow With Its Community 

Next Sebastien brings up a pretty interesting point, he says that for all four projects it is imperative for the community to grow in order for the projects to succeed. Thus, he asks the party what steps they are taking in order to secure that success.

No doubt, all four say that this is evident to their projects but it is in fact the spirit of decentralization that shines through. For instance, with a DEX, stablecoins could offer liquidity to the exchange. This is why ErgoDex offers a software development kit for developers to build on top of it.

Advertisement

Likewise, Pi says that it takes a village to raise a child. Cardano is still in its infancy, and it is up to the community as a whole to bring it to the top. As a firm believer in interconnectivity and cooperation, Pi stresses the imperative nature of inclusion and trust for true growth. With this model in place, all sides of an agreement can benefit together and find value.

Meanwhile, Dewayne says that composability is the name of the game here. By building partnerships, projects can come together to create new functionalities. In turn, this could create new value, which not only offers value to users and partners but also to the blockchain as a whole.    

Finally, Ben adds his two pence. He says that with DeFi and NFTs booming recently, the only way to go is up. There are always new and interesting ways to elevate a project. In fact, he says that once the first layer of DeFi projects is underway, it will get a lot more interesting to see what builds on top of that layer.  

Advertisement

Lastly, Sebastien asks, what is the most important thing that these developers would like to see roll out in the next Cardano hard fork? On this the answer was almost unanimous, 3/4 chose read-only inputs for UTXO. 

In conclusion, the assembly certainly led to some interesting conversation. The highlight according to this reader would be the very clear dedication and support that reverberates off of these leaders. Like any blockchain, one of the main points of success comes through the community-driven faith in the project.

Clearly, the Cardano community is in good hands. It is very nice to see that leaders within the community are here for the long haul. Much like the founder of Cardano himself — Charles Hoskinson, the drive is to support one another, build, grow, and expand until the final barriers are broken through.

Advertisement

Just recently, Hoskinson addressed the greater crypto-verse in order to shake the FUD out of nay-sayers. He said that Cardano is just getting started and is still very much working towards meeting every milestone on its roadmap. The next phase of Cardano will soon be here and the road ahead looks very promising. So, stay tuned to see what Cardano will bring next.

News Source

Advertisement
Continue Reading