Cardano on Recovery Amidst Plutus and Alonzo Upgrade Buzz

Cardano had experienced a rough patch recently as the valuation of its native coin tumbled down to $1.079454 on Sunday by 03:39 GMT. This translated into a 24.8% loss on the day, which is the biggest since March 12, 2020. The loss in the valuation impacted the total market cap of the network, with the latest figure pegging at $39.84 billion. In terms of percentage, Cardano now represents around 1.96% of the market capitalization of the entire cryptocurrency domain. In the last 7 days, the ADA prices oscillated between $1.07 and $1.38 and is still down by around 30% compared to its all-time high of $1.56 recorded on April 14, 2021.

It is important to keep in mind that soon, the smart contract will arrive on the Cardano blockchain as preparation in this regard is going on in full swing. For this, a protocol upgrade will be introduced by the name of Alonzo, following which the smart contracts will debut on Cardano. This protocol will be available for the users in a couple of months from now. Once launched, it will open a host of opportunities for users as well as app developers in the decentralized finance (DeFi) space.

Hot on the heels of the smart contract feature on Cardano will be the launch of AgeUSD stablecoin. This stablecoin is originally announced by Emurgo, which later on decided to partner with Cardano for the project. The stablecoin is different in its operating philosophy, and unlike Ethereum-based stable coins, it doesn’t depend upon the positions of the collateralized debt. Ergo is the blockchain on which the stablecoin will run, and it aims to prevent the repetition of infamous events such as Black Thursday for MakerDAO.

Cardano is an attractive investment opportunity, and if you are interested in the blockchain, it makes sense to have Cardano on the list of your investment. This layer-1 blockchain project has carved a niche for itself, and though it’s unlikely to replace Ethereum (as touted by many), it will have a place for itself in the future. Specifically, in the ecosystem of global computers, Cardano is a name that commands a special mention. It will be interesting to witness how the recovery of Cardano will pan out in the near future. Stability in the price is expected, and the upcoming launches of the stablecoin and protocol upgrade will help the blockchain network climb the crypto price ladder again and also affect the cardano price prediction. The partnership between Cardano and Emurgo for the launch of stablecoin is also an important development that will surely have a bearing on the valuation of Cardano in the times to come.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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