On September 12th, 2021, Cardano successfully completed the final stage of its move to make the network compatible with smart contracts. The long-awaited Alonzo Hard Fork Combinator launch marked the start of a brand-new age for Cardano. The developer behind the project, IOHK, took to Twitter to announce the successful upgrade.
The brand-new upgrade has actually succeeded up until now, with over 50 smart agreements currently released on the network, and counting. Alonzo’s Hard Fork Combinator (HFC) marks completion of the roadway for smart agreements ability. But also marks the beginning of a lot of work yet to be done. The community has so far welcomed the upgrade with open arms. Although something stays an issue, the price has actually not increased in worth. Why is this?
Why ADA Price Is Down
Last week, NewsBTC reported on the possibility of the Cardano smart contracts deployment triggering a “sell the news” event. So far, this appears to have actually held true, or what this Twitter user appropriately refers to as “buy the testnet, sell the mainnet.” This does not mean that most users dumped their bags. In fact, a report from Cardano shows that at least 71% of ADA’s entire coin supply remains locked up in staking contracts, with the current total of staking wallets at approximately 825,755.
A significant factor that the price has actually not tape-recorded any considerable upward motion pertains to the truth that it will take a while prior to decentralized applications (DApps) are live on the network, as designers will require time to effectively check and release their apps on Cardano. This means that it will take a while for traffic to pick up on the network. Triggering a boost in the price of the token as more users purchase Cardano in order to perform deals on the network.
ADA price will most likely trend around its current price point for the foreseeable future while developers work to launch their apps on the network. With the variety of smart agreements being released on the network, there will be a big increase of DApps pertaining to the network, resulting in an increase in decentralized exchanges and finance on the network.
Only The Beginning Of The Road For Cardano
While the upgrade is a big leap for Cardano, it is no doubt that there is still a lot of work left to be done. To genuinely have the ability to take on currently developed networks like Solana and Ethereum, Cardano will have some bumps in the roadway. These will include some good and not-so-good DApps on the ecosystem, and great development teams and terrible ones alike.
Cardano has its work cut out for it considered that the environment is a permissionless, decentralized blockchain so it will need to handle the excellent, the bad, and the unsightly that includes this.
Security is also a big issue that the network will have to deal with as decentralized applications debut on the network. Already, Cardano has actually released a bug bounty in combination with HackerOne to discover vulnerabilities in its network, providing to $10,000 in bounty to hackers who report bugs. With all of the hacks recorded in the decentralized finance space recently, it is important that the network is as secure as can be for users to start trading on the network.
Currently, the price of ADA is trading listed below $2.5. The possession has actually tape-recorded a price dip of 6.50% in the previous 24 hr, resulting in a $0.20 loss.
