After taking the top 3 of the cryptoactives market, Cardano (ADA) has been the subject of many discussions, mainly in relation to its price.
To answer investors’ doubts, we went after those who understand Cardano in Brazil and around the world to help you price and invest better.
Does the ADA’s recent rise have fundamentals?
According to data from Coingolive, the ADA had a 14.7% increase in the last 7 days and surpassed the bitcoin valuation (+3.15%).
The price hike, however, did not come for macro reasons such as increased adoption and actual usage or even some important news. The institutions behind the cryptocurrency are still working to close deals with governments and companies, but this week nothing was published.
So what motivated the price hike? First, bitcoin is recovering from the disproportionate drop in April and altcoins generally respond more strongly to btc’s ups and downs.
But that’s not the only thing that propelled Cardano, Allonzo Purple was launched and tests are going well so far. Allonzo Purple is one of the latest testing stages for launching smart contracts on the blockchain.
The creation of these contracts opens the door for the development of Dapps, NFTs, ICOs and farmings, with the potential to attract new investors and billions of dollars as with Ethereum or the Binance Network (BSC).
Cardano heavily criticized:
Speculating on this possibility, Cardano investors have been betting on a big rally. However, there are many doubts about the future of cryptocurrency, especially when we talk about something that is competing with the powerful Ethereum.
The community’s enthusiasm grew in the week of the 11/08 with good results of the cryptoactive and this was shown on social networks that had the third biggest peak of volume in history.
Some investors had to comment on the recent rally. One of them was Galaxy Digital CEO Mike Novogratz, who made serious criticisms of the Cardano project:
“… I spoke with twenty of the smartest people I know in this market, and zero of them said that Cardano is having traction with the developers” tweeted the billionaire.
It is a great concern for all smart chain projects to attract good programmers. That’s why Binance chose to simply copy the Ethereum code structure, making it easy to migrate from Dapps.
The ADA has a completely new language and some NFTs, DeFI and Dex projects are emerging, but there is still a lot to build. It will take a great effort on the part of the community to attract and train talent.
And in this sense, Charles Hoskinson (creator of the project) has been partnering with universities around the world for years, at the end of the year it will be time for him to reap the rewards or be disappointed.
Price drop after upgrade?
We spoke with Sabrina Coin, the ADA representative in Brazil, and she is confident in the long-term project, but admits that a possible drop could happen after the launch of smart contracts, on September 12th.
“I believe it can go up yes, but with time. Right after [a atualização], I think it could go through a correction because it’s already well in the hype.”, stated Sabrina.
In my opinion, profit taking is very likely, what is uncertain is the ADA’s ability to attract and retain talent. Is crypto-market billionaire and investor Mike Novogratz right?
We’ll be bringing more data and interviews with members of this community in the next posts, so stay tuned to Cointimes’ Telegram, Facebook and Instagram.
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