While many traders see the launch of smart contracts as a catalyst that will bring Cardano (ADA) to its ATH, analyst Ben Armstrong says it may take some time before another milestone is reached as Cardano is in a time of “maturation”.
Why is Cardano a private altcoin
Rather than having a whitepaper, Cardano is the first Blockchain platform based on a scientific philosophy and research. According to Armstrong, this peer review system applies design principles to tackle issues such as scalability, interoperability, and regulatory compliance. Ben Armstrong:
This progress did not happen overnight.
Learning from the mistakes of its competitors, ADA started to use the PoS consensus mechanism instead of the energy-intensive PoW. In particular, Charles Hoskinson says that Cardano uses only 6 gigawatt-hours of energy per year, not even 0.01% of the 115.85 terawatt-hour Bitcoin. The ADA price was also only around $0.18 on January 1, 2021. A $1,000 investment in those days is worth $13,450 today.
Investors prefer ADA pools
Since the end of March 2021, it has created a decentralized network from a community of 2,868 stake pools each Cardano block. According to statistics from Cardano data collection tool pooltool.io, there are currently 831,000 wallets staking ADA. This represents an increase of 35% since June. Over 71% of the entire ADA supply is currently staked, worth approximately $60 billion.
Not only that, Armstrong also highlights Cardano’s solid evolution through updates via Byron, Shelley, and Goguen:
All these previous updates formed the basis of the Alonzo hard fork. The latest update is also named after a mathematician and American pioneer Alonzo Church. Over the past few months, Alonzo has appeared in several stages consisting of Blue, White, Purple, Red, Black stages and finally the mainnet launches on September 12. This marks the completion of the Alonzo hard fork and the final phase of Goguen coming.
Cardano developers will have access to NFTs
This development enabled smart contracts to be written for Cardano using Plutus scripts that developers can use to create NFTs. In terms of ADA’s growth, Armstrong emphasizes that if you truly believe in Cardano and its ever-growing ecosystem, we need to be patient and not get caught up in FUD. Armstrong’s other analyzes for the ADA price were:
I know that countless traders believe the ADA price will rise on September 12 after the Alonzo mainnet launch. You probably already know that this isn’t the case. In fact, we’ve seen a pullback since then. But it’s okay. Charts move up and down every day. This helped market activity. Focus less on daily and hourly charts and more on the big picture. This is just the beginning for Cardano.
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