On September 12, 2021, a much-awaited Alonzo hard fork upgrade on ADA had been completed successfully. The community members are now allowed to create and execute smart contracts on the public blockchain. The network despite celebrating the milestone, observes that it is still in the early days of the project with no expected Cardano(ADA) price spikes.
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Why ADA Price Is Stagnant Despite Smart-contract Launch?
- On September 4th, 2021, Minswap was the first dApp to go live on Cardano public testnet. The upgrade experienced backslash for imperfect user experiences. Popular Ethereum educator Anthony Wassano slammed Cardano, addressing the fundamental issues faced by ADA’s smart contract testnet launch.
- Crypto community and developers questioned Cardano’s ability, as it could able to process only one transaction per block. Addressing the FUD, IOHK released technical documentation to assist developers but seems nothing worked out as ADA price remains stagnant even after the launch.
- Concurrency issues: This means two different users cannot communicate with a smart contract at the same time.
- Alonzo upgrade is not up to date. ADA’s slow development will become ineffective once ETH 2.0 comes into effect. Additionally SOL’s rust contract, Matic smart contracts fascinating the crowd.
When Will Cardano(ADA) Price Hit $5?
However, amid rising FUD, the Cardano network urged the user base via tweet to maintain sensible expectations followed by the Alonzo upgrade launch.
The ADA network hailed Alonzo hard fork as a milestone step for the blockchain’s DeFi capabilities. Cardano aimed to rival Ethereum’s monopoly in hosting dApps and web3 applications. Moreover, testnet results are not final, it takes a few more months until it lives up to its set standards.
However, the hype for Alonzo Hardfork’s upgrades recently spiked Cardano’s price to record new highs. ADA rallied by 190% from $1.12 in mid-July to $3.10 on September 3rd. Trend and RSI factor hints ADA is now looking for a strong support zone at $2.40. Fixing scalability issues that exist in the present upgrade would help the price to break the resistance at $3.10.
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