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Cardano, like most altcoins, lost a major portion of its value when the cryptocurrency market fell in mid-May. While ADA had recovered some of its losses at the time of writing, it was still a long way from its all-time high of $2.45.
Nonetheless, the level of optimism connected with Cardano is as high as it has ever been. This is an oddity in several respects, not only because much of the crypto-market is still recovering from the aforementioned depreciation event, but also because the communities of other alts, such as Dogecoin, have consistently witnessed a reduction in positive attitude.
What is the reason behind this? And, may ADA repeat its price movement from the summer of 2020, when the alt increased by about 550 percent in just four months?
This is a difficult issue to answer in a market as unpredictable as the current one. However, there are some encouraging signals that imply Cardano will have bullish price activity in the near future. This was a viewpoint recently shared by prominent trader Lark Davis as well, with the analyst predicting that ‘Cardano Summer’ will arrive shortly.
And there’s excellent cause to be optimistic. According to IOHK’s Charles Hoskinson in a recent interview, the Alonzo hard fork, the anticipated update that would finally let developers to construct smart contracts on Cardano, is on track for a late-July or early-August release date. In reality, the first Alonzo testnet went online only a few days ago.
While Hoskinson later modified his words, stating that he is attempting to “manage expectations” and that “Alonzo does not need to be on the mainnet in 90 days,” the impact of his statements was evident on the community, with ADA rising by more than 30 percent shortly after.
Smart contracts, he went on to say, are the “capstone, the holy grail of utility.” Ergo, it is only understandable that ADA’s value will hike on the foundation of the expectations associated with it. Something similar was also alluded to by Davis in a recent video, with the analyst stating,
“Smart contracts are coming and they are coming very soon and you can see the price building that anticipation in.”
“Smart contracts are obviously going to kick off a revolution in terms of what’s possible on Cardano,” he added.
However, this is not the only change. Cardano’s ERC-20 converter is also reaching the testnet phase, which will likely spark future integrations with Cardano. Will it, however, cause a bigger exodus from the Ethereum network? Davis pointed out that it was unlikely.
It’s also worth noting that this isn’t an impossibility. Previously, projects such as SingularityNET shifted from Ethereum to Cardano, citing a “lack of clarity,” as well as speed and cost problems.
Finally, the analyst emphasized that, according to the conclusions of a recent CoinShares analysis, ADA had its biggest weekly inflows from institutional managers. Simply put, this means that institutions are now looking beyond Bitcoin and Ethereum, emphasizing the comeback of the whole crypto-market.
As a result, it is reasonable to expect greater price objectives for Cardano in the future, with ADA likely to challenge its ATH again shortly. A more certain declaration on the reality, on the other hand, would be based on how the rest of the market performs, particularly Bitcoin and Ethereum. Because of the devaluation of these two cryptos, ADA has dropped to $0.92 on the charts. If corrections occur again, a new ATH will have to be postponed.