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Cardano sits third among cryptocurrencies with the biggest market capital just above Binance Coin. Critics questioned its position as a top altcoin at the start of the week following a hitch related to its smart contracts platform.
The network’s native token ADA set an all-time high last week above $3 after an impressive run. It, however, fell steeply this week on Tuesday, bringing the momentum it had built coming from the weekend to a halt. Although the token has managed to work a way out of its lows, it is yet to get over the losses completely.
A quick look at the recent developments around the blockchain and what they mean to the token.
Cardano team responds to rumors of Smart Contracts fail
The public testing phase for the first DEX was halted suddenly over the weekend as some users complained that the smart contracts platform was incapable of handling more than one transaction at a time. The story quickly made rounds on Reddit and Twitter, with some critics discrediting the network entirely, saying that it hadn’t quite justified its market position and capital.
Many users continued reporting problems when interacting with the protocol, which prompted Cardano developers to shed light on the matter. The team refuted the allegations that the platform couldn’t handle more than one transaction per block.
The InputOuputHK Twitter handle further noted that the problems being experienced by the users were related to the decentralized exchange on the platform Minswap and not the network. Minswap, which was testing Plutus, seemingly launched their product in haste without ascertaining it was ready to be rolled out.
Interestingly, the developer team commended Minswap on its launch, observing that the move helped identify issues that could now be addressed. The team also expounded more on the Unspent Transactions Output (UTxO) blockchain model and its significance in the thread.
Smart Contract launch date on mainnet confirmed
Input-Output HK announced via Twitter on Tuesday that the mainnet launch for the Cardano smart contract platform was slated for 12 September. The Twitter thread detailing the news added that the Alonzo Hard Fork Combinator event would help set the groundwork for “an exciting new era of #smartcontracts” on the blockchain.
The upgrade will introduce smart contracts capability to the network, potentially attracting more developers and investors. Decentralized exchanges will be able to enter the ecosystem after the hard fork. From a market standpoint, the final deployment would lift Cardano into the range of other smart contracts platforms like the newcomer Solana and Ethereum.
Cardano (ADA) performance in the market
Cardano’s ADA token successfully broke above $3 (settling at $3.10) on Thursday last week after many attempts and multiple rejections at the level. However, the token failed to keep up with the momentum dropping to the $2.80 – $2.90 range, unable to retest $2.96 on Friday.
ADA traded at this range at the start of the new eek but fell sharply to $2.04 on Tuesday as altcoins fell alongside the flagship crypto Bitcoin in a marketwide collapse. The token peaked at $2.57 on Wednesday, but the brief upswing was followed by another correction to $2.21 as per coinmarketcap. It has managed to stay above $2.40 for the most part since then and is currently changing hands at $2.47- down 20.79% from its record high.
Investors appear to be patiently watching the movement as the token continues trading in the red. The trading activity over the last few days hasn’t been positive, but the charts remain bullish for ADA, especially with the Alonzo upgrade on the horizon. The event will potentially define ADA’s price course over the weekend and through to next week.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.