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Cardano approaches ATH, could it hit $3 to $5 post-Alonzo hard fork?

Photo by Executium on Unsplash

Cardano (ADA) touched $2.17, is it inching to create a new All-Time High?

If you have invested in Cardano, you might be happy with the extraordinary performance of ADA over the past three weeks. The currency has more than doubled in value and was positioned at $2.17 at the time of publishing this blog. At this mark, it is all geared to retest its all-time high of $2.46 and set a new record.

Since its release in 2015, Cardano has been one of the fastest-growing blockchain assets in the crypto industry and has been in the top 10 by market capitalization.

Also Read: Should You Invest In Stablecoins? Are They Really Stable?

So What Is Fuelling Its Rise?

It was after the blockchain’s chief developer announced a September 12 release date for the ‘Alonzo’ upgrade that Cardano jumped past the $2 mark for the first time in almost three months.

The mainnet hard fork will bring smart contract functionality to Cardano, allowing the blockchain to incorporate more apps, including Decentralized Finance (DeFi) platforms. ADA has been termed as ‘Ethereum Killer’ as the upgrade will enable automated cryptocurrency lending and trading. With its smart contract feature, ADA is well-positioned to challenge Ethereum.

Adding on to the excitement of those waiting impatiently for the Alonzo upgrade, Cardano’s Head of Delivery, Nigel Hemsley, had shared that ADA’s Alonzo Purple upgrade would take place on 12th September, slightly earlier than what was expected. In a recent Cardano 360 episode on YouTube, Hemsley said, “Once we hard fork the testnet, it gives us this period of stability where we can test it and so can exchanges. We will submit a proposal for a mainnet hard fork and also patch you with our Plutus application backend so we can have a complete smart contract release ready for people to use, ready for the Alonzo hard fork on Monday, September 12.”

The mainnet hard fork could be the first test for the blockchain company as it will determine if the developer community embraces the new functionality or maintains a safe distance from it. The investors will, in turn, mirror the sentiments and responses of the developers.

Also Read: Staking vs Yield Farming: What’s the best way to earn passive income from cryptocurrencies?

What Happens Post the Alonzo Upgrade?

ADA price began rising steadily as many are waiting with bated breath for the hard fork. And the price of the currency is expected to rise further as we inch closer to the launch of smart contracts. Industry buzz is growing stronger around the notion that ADA could surpass the long-term resistance of $3 after the hard fork in September. Discussion boards and crypto groups are betting that Cardano’s price could touch as high as $4 or $5 in the coming month.

Source: Coinmarketcap

What followed Ethereum’s London hard fork could serve as a precedent for Cardano investors to follow, and the currency could surpass the $5 long-term resistance. Subsequently, ADA could exceed the forecasted $10 mark as early as 2025.

Conclusion

The Alonzo launch is probably the most awaited event in recent times in the crypto-verse. Investors can expect to grow their profits as the traffic on the network increases, fueled by the DeFi development.

Analysts are hinting that the price of Cardano could surge to $20 or even $60 in the coming years, but a lot is hinging on the acceptance of the smart contracts post the Alonzo Hard fork upgrade. For now, the spotlight rests on Cardano as investors are watching its movement enthusiastically.

What are your thoughts? Do you believe Cardano will surge to $5 post the Alonzo hard fork? Leave your comments below.

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Anita Iyer

Anita Iyer

Simplifying complex cryptocurrency topics for easy reads. https://muckrack.com/anita-iyer-crypto