Amid growing excitement, the Cardano team has finally delivered on its promise.
On Friday night, the team officially announced the long-awaited smart contract launch date - September 12.
With constant notifications regarding updates, the community can see how the team is racing against time to ensure a smooth transition.
This has excited the Cardano community as well as crypto traders. Many people have not stopped buying ADA tokens since the team announced Alonzo Purple, the final test phase, is ready to go live on August 6.
Following this announcement, Cardano has begun entering the final phase of the Alonzo upgrade to integrate smart contract functionality on the Cardano network. This helped the ADA price explode from $1.40 to above $2.25, up more than 50% in just one week.
A question arises now: "Is the uptrend sustainable?"
In fact, ADA has many advantages that help push car prices higher.
Performance growth from excellent developers
Many projects have been built on smart contract functionality on the testnet.
Developer activity has increased significantly since the Alonzo testnet started. Just a few days from August 6, Cardano hit the top spot on Github when Alonzo Purple started recommending projects.
It is noteworthy here that the number of projects committed to development is increasing. On August 11, the number of committed projects increased to nearly 600 from 545 just two days earlier.
This shows that more and more developers are working or trying to build on Alonzo, which is a very encouraging start.
ADA's rise is supported by strong fundamentals, typified by growing developer activity as a sign of adoption.
Bullish sign on technical chart
The rally was fully matched by an increase in trading volume on exchanges - a sign of a sustained recovery.
While a sudden burst of volume is not a good thing, a steady increase in ADA volume is a good sign that more investors are rushing into the market every time the price moves higher. .
With the recent listing of ADA on Japanese exchanges, the token has easily reached a market of more than 100 million users that was previously unable to purchase.
Japan is the third largest economy in the world and has the highest cryptocurrency adoption rate in the world.
Moreover, the low circulating supply of ADA is also one of the reasons why the price may continue to rise.
Currently, 71% of the total supply is being invested in securing the network. This is the highest rate for any crypto project.
Staking amounts have increased 11% since the beginning of June, when the Cardano network surpassed the 600,000 address mark for the first time. Prior to Alonzo's launch, the number of addresses had grown to 749,400 unique addresses at the time of writing and is still growing.
One important point we can draw from looking at staking indicators is that no one is selling their ADA tokens even after the price increase over the past week.
Cardano staking program has no lock-in period. This means that users are free to unsubscribe at any time to sell tokens.
The fact that this team continues to grow despite the strong increase in the price of ADA, demonstrates the long-term commitment from the Cardano community. This also means that there are not many ADA tokens circulating in the market to buy and sell.
All of the above factors point to explosive times ahead for ADA.
However, RSI is the only obstacle that can slow this train down as the index is currently in the overbought zone.
The price may encounter some resistance and consolidate as it moves near the ATH at $2.47. This will be a good opportunity for the RSI to cool down a bit before the final breakout wave.
However, as we come to the smart contract implementation date on the Mainnet, some issues may still affect the dynamics of ADA. For example, due to the unexpected events surrounding the hardfork on September 12th, the price may be affected.
Additionally, the way ADA tokens are used in smart contract applications could create an opposite 'hinder', as it remains unclear how ADA tokens will be used to run applications. used on the Cardano network. .
However, until user reports start popping up after the Cardano smart contract goes into effect, the hype could continue to push the ADA price higher after the RSI cools down a bit.
Although the hardfork is still almost a month away, traders need not worry about the hype going away as the Cardano Foundation has a lot of work to do to keep the excitement going.
Many marketing activities take place to promote awareness
To celebrate the transition to the Smart Contract Era, Cardano hosted a conference called “Cardano Summit 2021” which will be held online on the 25th.
– September 26, about two weeks after the hardfork.
The event will take place on a global scale with each Cardano Center in each continent, 20 events will be community-led and expected to have at least 50,000 participants.
The Cardano team put a lot of effort into marketing the event, with numerous twitter updates to promote it, including sending out conference invites to community members in each country.
This can bring better awareness to those who are not familiar with the token or the update. and the end result could be bringing in a new set of buyers.
The entire crypto market is entering a new bull run, an important update coming soon, good adoption, a pretty serious imbalance in supply and demand, and a bunch of marketing events, it seems. the time is ripe for ADA to take off.
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