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The recent announcement regarding Cardano’s Alonzo hard fork has sent shock waves in the crypto world. According to the blockchain’s founder Charles Hoskinson, Cardano should fully support smart contracts by Friday, 20 August. Furthermore, the hard fork seems to have the potential to propel Ada’s price levels to new heights.
What the Alonzo Hard Fork Offers
The Cardano blockchain has development grouped into five key stages. Each stage is meant to make it a better version of itself. The five stages are Byron, Shelley, Goguen, Bansho, and lastly Voltaire. Within all these development stages are upgrades that usher them through with significant changes.
The Alonzo upgrade is the last within the Bansho development era. Named after the late legendary mathematician Alonzo Church, it will make the blockchain compatible with smart contracts. Smart contracts are crucial in supporting decentralized finance, supporting Dapps and tokens, such as NFTs. The Ethereum blockchain has always enjoyed dominance in this aspect, which catapulted it to the current top levels and being second only to Bitcoin in size.
3 Stage Alonzo Upgrade
The Alonzo Upgrade has taken three stages, namely white, blue and purple. Alonzo white had limited support of some 500 smart contract users who formed a closed group.
The Alonzo purple testnet, which started on 9 August 2021, made it the first fully public manner to support DeFi. That is huge news in a DeFi world dominated by Ethereum.
Recent Price Movements Give a Good Pointer
Following the announcements regarding the hard fork, the market reception has been positive. The price made a mind-blowing 50% price gain in one week in anticipation of a well-sustained DeFi surge. It has posted prices of $2.15 recently, price levels not seen since May 2021.
If these movements are relevant, Ada’s prices should soon go through the roof. In addition, the price of Ether has been able to outpace Bitcoin’s rate of price gains thanks to its robust DeFi space. With Cardano set to be a key anchor of DeFi with the Alonzo hard fork, it may just as well go past the single-digit dollar price and offer much more.
Predictions are also quite bullish regarding where the coin’s price could settle down. Price predictions for a few months up to 6 years down the line suggest that Cardano could become the biggest challenger to Bitcoin and Ethereum in market cap.
Analysis from renowned groups predicts that Ada will hit $10 later this year. Predictions further see the end of 2022 prices hovering at around $22, which is phenomenal. But that isn’t the most stunning prediction. For instance, by 2027, ADA’s price could be as high as $100.
Ignore ADA at your Expense
Cardano’s founder, Charles Hoskinson, is also part of the brains behind Ethereum as a co-founder. The development plan he has laid out for the Cardano blockchain is among the most robust and aggressive of any crypto project. Price movements and upgrade reception from the crypto community have also been positive.