In light of the imminent launch of the DApp-compatible Alonzo hardfork, ADA grew by over 10% yesterday
Many cryptocurrencies have surged over the weekend, but Cardano (ADA) has led the onslaught.
In mid-May, ADA hit an all-time high of $ 2.51, but then lost more than half of its value due to the infamous crypto crash. After falling below $ 1.40 on Saturday, ADA was able to gain on Sunday and Monday and has recovered to $ 1.73 at the time of writing this article.
One likely reason for this new dynamic is the growing buzz around the upcoming Hardfork launch. Named after the American mathematician and computer scientist Alonzo Church, Alonzo-Hardfork opens up new possibilities for Cardano.
The update integrates Plutus scripts into the blockchain, enabling the deployment of smart contracts. This allows Cardano to support a number of DeFi apps for the first time.
IOHK, the company that built the Cardano blockchain, announced last week the launch of the first Alpha testnet, Alonzo Blue, known. A select group of SPOs and Plutus pioneers are now laying the groundwork.
The full launch will be in a series over the next few months color-coded phases place. The first testnet is followed by Alonzo White running performance benchmarks and demo dApps. The testnet is expected to be released in early August with Alonzo Purple.
Although Cardano is still behind Ethereum in development, the Cardano blockchain is currently more efficient and cost-effective than Ethereum due to the proof-of-stake consensus mechanism.
With the update to Ethereum 2.0, Ethereum will also move to the proof of stake, but with the rollout of the Alonzo hardfork, Cardano could reach smart contract functionality before Ethereum gets its long-awaited upgrade.
Currently, many investors want ADA as a hedge against possible problems with the introduction of Ethereum 2.0 in their portfolio.