Cardano’s Next Alonzo Update Boosts ADA Price Despite Big Lag

The Cardano Foundation is led by Charles Hoskinson, founder of Cardano and also a co-founder of the Ethereum blockchain. On April 6, through his YouTube channel, I speak of Cardano’s roadmap covering the next four years in a video titled “Some Musings about the Roadmap.”

In these musings, he mentioned that, although the Cardano developers are working on solving the scalability problem and Cardano’s approach to it will only be devoted to this topic once the Alonzo update is complete. The scalability phase of the Cardano roadmap is as follows, after the completion of the Goguen update. This phase is called Basho, in honor of the seventeenth century Japanese haiku master.

Cardano (ADA) has quickly become one of the top 10 cryptocurrencies in the world by market capitalization. It currently ranks seventh, with a market capitalization of more than $ 41 billion. It represents almost 2% of the entire cryptocurrency market. According data of CoinGecko, Cardano hit an all-time high of $ 1.55 on April 14.

The Deadalus and Alonzo update

On April 1, the foundation He launched the Deadalus update, which introduced support for native tokens on the Cardano blockchain, along with the Project Catalyst Fund3 voting record, effectively starting the countdown for Cardano to become a fully decentralized blockchain.

This countdown has come to an end. Cointelegraph spoke more about the Deadalus update with a representative from the Cardano Foundation. They declared: “Daedalus users can now use their wallet as a single unified interface to receive both ADA, as well as a number of other native tokens deployed on the Cardano blockchain.“In addition, they discussed that Cardano has become a fully decentralized network, elaborating:

“We are delighted to report that the countdown D = 0, signaling the complete decentralization of the Cardano blockchain, has also been included in the latest Daedalus implementation. This marks a momentous milestone in which all Cardano staking groups They are operated by community run betting group operators. “

On its official website, Cardano claims that this decentralization event makes it one of the most decentralized blockchains in the world. Goguen’s next and final phase on the Cardano roadmap is the Alonzo update, previously delayed. The update will bring the functionality of smart contracts to the blockchain. The development of this update is possible thanks to the Plutus platform, which brings a native smart contract language to users of the Cardano blockchain, as mentioned in a blog of IOHK on Plutus.

Before the Deadalus update, Cardano went through its Mary hard fork, which introduced tokens to Cardano’s unspent transaction output set that allows miners to process custom tokens and non-fungible tokens with the same cost efficiency as the blockchain’s native currency, ADA.

Furthermore, Cardano developers have even found a way to mint and sell collectible NFT tokens without the functionality of smart contracts. Cointelegraph discussed with Johannes Jensen, product and project manager at eToroX – a digital asset platform. He said:

“The Alonzo hard fork introduces a more complex coordination problem as the surrounding ecosystem of service providers will have to prepare for the hard fork and subsequent Cardano-based smart contracts and tokens entirely.”

ADA Could Hit $ 2 Soon Due To DeFi Growth

Cardano’s ADA has seen almost 10% gains in the last 14 days. Considering that the important $ 2 mark is $ 0.6 from the current trading price, at the current rate of growth, it is highly unlikely that ADA will exceed the $ 2 mark in the near future.

Yet another possible “DeFi summer” is one of the main reasons that could drive growth. If we use the DeFi summer of 2020 as an indicator for this year, DeFi markets will likely grow to new highs in 2021. In fact, one-year earnings for ADA currently stand at 3,490.8%.

According data From DappRadar, the total locked value (TVL) in decentralized finance protocols reached its all-time high of $ 70.43 billion on April 16. Since the beginning of this year, the TVL has grown almost four times, at the time of writing this article. The TVL went from 30,740 million dollars on January 20 to 64,470 million dollars on April 19.

This period has marked immense growth for this subsector of the cryptocurrency market. On this, Jensen further opined: “There is no doubt that the final stages of the Goguen phase at Cardano will bring a number of existing trends in DeFi, such as automated market makers and the loan market, to the web.“.

However, most of the DeFi protocols in existence today are built on top of the Ethereum Blockchain. Ethereum has also onboarding development teams for major DeFi protocols, such as Uniswap, Yearn.finance, and others. Although even Cardano remains positive about its reach in the DeFi markets, the foundation representative said: “We are confident that as more of our components become available, we will see a multitude of DeFi solutions and indeed all kinds of DApps built and migrated to the Cardano blockchain.“.

Related: Life Beyond Ethereum: What Layer One Blockchains Are Bringing To DeFi

With its use cases and the upcoming Alonzo update that will bring smart contracts functionality, Cardano is well positioned to become an alternative DeFi platform to Ethereum. The adoption between decentralized applications and DeFi protocols will also affect the price of ADA.

In addition to expanding its footprint in DeFi markets, Cardano is making efforts to improve blockchain adoption in markets such as South America, Africa and Southeast Asia. The platform aims to offer the capacity of the blockchain to several different use cases, such as logistics, agriculture and commerce. Cardano is working with Emurgo, an emerging markets consultancy, to achieve this goal. Here, Jensen said:

“If they are successful in convincing leaders in Africa, South America and Southeast Asia to use the Cardano blockchain, the yardstick will shift from Ethereum-based DeFi applications to global trading and trade processing applications. “.

Cardano already has use cases in the supply chain realm. The Cardano-Scantrust solution enables companies to use various blockchain functions to help to multiple aspects of your business. In addition to helping business solutions, the Cardano Blockchain is being embraced in new areas.

Recently, the first Cardano-based stablecoin was announced, AgeUSD, which is an algorithmic stablecoin protocol that was developed on the Ergo blockchain in collaboration with Emurgo and Input-Output Global. This stablecoin will be available on Cardano along with the Alonzo smart contract update.

The “Ethereum Killer” narrative has been around the cryptocurrency market almost since Ethereum gained the limelight. There has been little development in this regard as Ethereum remains the king of the DeFi ecosystem. However, Cardano takes a very positive approach to this entire narrative, with his representative stating:

“We are less interested in competing for market share and more in offering best-in-class components for the decentralized future. […] We prefer to focus on interoperability and cooperation with other Blockchains, as we believe that decentralized technology is too important to fail. We work for the good of the entire Blockchain industry and the adoption of blockchain technology as a whole. “

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Cardano’s Next Alonzo Update Boosts ADA Price Despite Big Lag

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