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Early data show that fears of a severe pre-Memorial Day selloff in cryptocurrencies were exaggerated.
Cardano’s ADA cryptocurrency was back in the limelight on Sunday, leading a sluggish market rebound after reports that the developer network was getting closer to deploying smart contracts.
The combined value of all cryptocurrencies rose 4.4% on Sunday to $1.6 trillion, according to data from Coingecko. Among the majors, it was Cardano’s ADA leading the rally with a 17% gain. ADA peaked at $1.70, according to TradingView, and was last seen hovering just north of $1.63.
At current values, Cardano was the fourth-largest cryptocurrency with a total market capitalization of $52.9 billion.
On Sunday, every cryptocurrency in the top-20 saw rises. The price of Bitcoin (BTC) increased by 3.5 percent to $35,833, Ether (ETH) increased by 4.3 percent to $2,431 and Binance Coin (BNB) increased by 6 percent to $327.
Despite the slight rise, market mood remained bearish this weekend, with investors speculating on whether Bitcoin has indeed bottomed out. The Crypto Fear & Greed Index has dropped to 10, on a scale of 1-100, with lower values indicating “extreme fear.”
What’s driving ADA?
On Sunday, the occurrence of oversold conditions following the most recent market fall looks to have played in ADA’s favor. Saturday, the cryptocurrency temporarily breached the oversold sign on the hourly Relative Strength Index before dramatically recovering over the next 24 hours.
ADA was one of the top-performing digital assets prior to the May 19 crypto market flash crash. It peaked at $2.46 on May 16 before plummeting by 55% during the next week. Beyond the quick adjustment in market sentiment, the fundamentals of ADA remain unchanged.
On a more basic level, ADA fans are ecstatic with the release of the Alonzo smart contract testnet by Cardano’s development team, Input Output Hong Kong, or IOHK. As Cointelegraph previously reported, IOHK planned to gradually launch Alonzo’s testnet in May and June. Over the next month, early users will be able to try Alonzo Blue, the first alpha testnet.
As IOHK explained:
The ‘Alonzo’ hard fork will bring exciting and highly-anticipated new capabilities to Cardano through the integration of Plutus scripts onto the blockchain. These will allow for the implementation of smart contracts in Cardano, enabling the deployment of a wide range of new DeFi applications for the first time.
Cardano founder Charles Hoskinson recently indicated in a YouTube video that attention will shift to solving the scalability issue once the Alonzo rollout is complete.