As a show of support for Cardano’s Alonzo upgrade, Binance has announced stopping deposits and withdrawals on Cardano’s governance token. As widely reported in various, Cardano’s Alonzo update scheduled for the next three days will enable the launch of smart contracts.
Binance Supports Cardano
Binance also revealed during the announcement that trades on the ADA would resume immediately after the upgrade is complete and stable. Various analysts opined that this is Cardano’s most important upgrade as it enables developers to build DeFi apps for any transactions on assets on the platform without involving any third party, especially banks.
Defi apps consist of blockchain-built apps for financial transactions and which are often automated. When Cardano launched the testnet for its smart contract feature last week, the price of its governance token rallied to a new peak price of $3.36. However, Nomics data report today that ADA currently trades at $2.59.
Testnet With Bugs
After Cardano launched the testnet for its upcoming upgrade, it discovered that a user could only run one smart contract transaction. Hence, the team had to shut down the testnet earlier than planned. However, they remarked that they envisaged this possibility since it was the first test of the net since they started building it.
The Miniswap team released an analysis of the situation, stating that they have found the source of the problem, the possible solution, and the scheduled date to test the next iteration. Some of the competition criticized Cardano when this issue popped up saying the blockchain wasn’t built for this purpose.
The good news is that one of the Cardano-built decentralized exchanges, Sundaeswap, argued that it had created a workaround for the one user per transaction block issue and several transactions can now occur per block.
Can ADA Smash $9 This Year?
ADA’s performance this year has been its best since its inception. It is even projected to surge higher still. ADA price at the beginning of this year 2021 was $0.1813 and went on a bullish run like other altcoins till May this year. Despite the bearish trend between May and July, ADA maintains the $1 price range. It has continued to outperform most other altcoins between May and now.
Since last month, it has embarked on another bullish run with $3 its next key resistance. But most Cardano bulls are optimistic that ADA can close the year at over $9. No one can predict with accuracy whether ADA will surpass $9 by this year-end. Despite the fundamental and technical indicators, the market has proven unpredictable repeatedly.
Unexpected circumstances and FUD usually cause significant fluctuations in the market sentiments for all the cryptocurrencies, including ADA. But beyond these factors and based on the prevailing market conditions (including the high demand for Cardano’s product offerings), it is likely that ADA will surpass $9 this year. One key driver of ADA’s price and Cardano’s growth is institutional interest. Institutional investors continue to be amazed at its awesome features and what the future holds for the blockchain.
James Thompson