Cardano, the blockchain platform known for its native token ADA, experienced a significant surge during the 2020 to 2021 bull run, with ADA reaching an all-time high of $3 in August. However, the excitement surrounding the activation of smart contracts after the Alonzo hard fork has since given way to disappointment as ADA has plummeted by over 90% in value. Currently trading at $0.32, ADA has struggled to maintain its value, with support levels hovering around $0.30.
The activation of smart contracts on Cardano was a major milestone for the platform, ushering in the Goguen phase and enabling developers to deploy dApps and compete with Ethereum. Despite the initial optimism, the sharp decline in ADA’s value following the activation of smart contracts has raised concerns among investors. Many are now questioning whether the activation of smart contracts on Cardano actually hurt the coin’s valuation rather than boosting it.
The Road Ahead for Cardano
As Cardano prepares to transition to the Basho stage and eventually to Voltaire, its final development phase, there are hopes that ADA will regain its value. The introduction of decentralized governance through Voltaire will give ADA more utility, allowing holders to vote on network improvements and funding projects. However, the current selling pressure on ADA suggests that the road to recovery may be challenging.
Despite the setbacks, there is still hope for ADA to rebound and regain its value. If buyers step in and push prices above $0.50, ADA could see a resurgence towards previous highs. However, if the selling pressure continues, ADA risks falling even further, potentially reaching lows of $0.22 in 2023.
While the activation of smart contracts on Cardano was a significant achievement, the subsequent decline in ADA’s value has raised doubts about the platform’s long-term prospects. As Cardano moves towards decentralization and governance through Voltaire, the future of ADA remains uncertain. Investors will need to closely monitor market trends and developments within the Cardano ecosystem to determine whether ADA can overcome its current challenges and emerge stronger in the years to come.
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