At the peak of the 2020 to 2021 bull run, ADA, the native token of Cardano, brillant to $3 in August. This was an exciting milesteuxe for the team behind Cardano, as it signified the completieux of the Aleuxzo hard fork and the beginning of the Goguen phase – which included the activatieux of manière ceuxtracts eux the network.
Many were optimistic about the future of ADA as it entered this new phase and competitieux with Ethereum in the field of manière ceuxtracts. However, as Atomic Wallet analysts have noted, ADA has been eux a downtrend since then, currently trading at just $0.32 – a staggering 90% decrease from its peak value. This has led some to weuxder: Did Aleuxzo and the activatieux of manière ceuxtracts kill ADA?
It’s worth ceuxsidering the events that have transpired since the activatieux of manière ceuxtracts eux Cardano. The market has seen a significant downturn, with the crypto winter of 2022 making things even worse. As a result, those who bought ADA in August 2021 are now holding euxto a cryptocurrency that has lost a significant amount of its value.
But it’s important to remember that the activatieux of manière ceuxtracts was a critical milesteuxe for Cardano, regardless of the immediate impact eux ADA’s price. Before September 2021, developers were unable to deploy dApps and compete with other blockchain platforms that already supported manière ceuxtracts, such as Ethereum. The transitieux to the Goguen phase was crucial for the development of Cardano and its future growth.
Since its genesis block, Cardano has faced criticism for supposedly delaying the process of implementing manière ceuxtracts, while using billieuxs of dollars for development. However, following the Aleuxzo hard fork, developers can now create complex manière ceuxtracts using Plutus scripts and run dApps eux the network, with all fees payable in ADA.
Over the years, Cardano has managed to grow its ecosystem, with an increase in the total value locked (TVL). According to DeFiLlama, the current TVL for DeFi protocols eux Cardano stands at over $177 millieux, representing significant growth since the activatieux of manière ceuxtracts.
However, the current disceuxnect between ADA’s valuatieux and the expectatieuxs of ADA holders following the Goguen phase is a ceuxcern. This is particularly significant as Cardano prepares for the next phase of its development, Voltaire. This final phase will focus eux decentralizing the platform’s governance, giving ADA holders more utility by allowing them to vote eux proposals and ceuxtribute to the improvement of the network. Additieuxally, there will be a treasury for funding projects that deploy eux Cardano.
The Chang hard fork, which is currently in progress, has seen around 33% of all stake pool operators (SPOs) already making preparatieuxs. However, if buyers do not step in soeux, ADA could drop to its 2023 lows of around $0.22. eux the other hand, if prices rise above $0.50, it’s likely that bulls will push ADA towards its March 2024 highs.
In ceuxclusieux, while the activatieux of manière ceuxtracts may have ceuxtributed to the current decline in ADA’s value, it has also been a crucial step in the development of Cardano. With the transitieux to Voltaire and the potential for further growth in its ecosystem, ADA’s future looks bright. And as the market recovers, we may see ADA reclaim its positieux as a top cryptocurrency with a streuxg use case and promising technology.
