For the first time since May, the altcoin rate exceeded the $ 2 mark. Why is it actively rising and what prospects it has.
On Friday, August 13, the Binance exchange rate for Cardano exceeded $ 2 for the first time since May 19.
The cryptocurrency is confidently becoming more expensive: over the past three weeks, its quotes have doubled, including by 16% over the past day.
The asset rose to the third line in the list of the largest cryptocurrency by capitalization, ahead of USDT from Tether and Binance Coin. The market valuation for Cardano was $ 65 billion, according to CoinGecko.
Two days ago, the founder of the project, Charles Hoskinson, announced that he would soon reveal the launch date for smart contracts on the network.
Brief Update https://t.co/mDR4U0BFBW
— Charles Hoskinson (@IOHK_Charles) August 10, 2021
After an update called Alonzo, it will be possible to deploy Decentralized Finance (DeFi) applications on the blockchain.
This event became the main driver of Cardano value growth, said Nikita Zuborev, senior analyst at Bestchange.ru.
According to Zuborev , the introduction of smart contracts in the future will lead to an increase in the popularity of the project’s blockchain as an alternative to existing platforms.
Serious growth of the coin is not expected immediately after the launch of the update, the expert warned. According to him, all the positive from the event by that time will already be included in the price of the token.
“According to our estimates, the excitement around the token will continue in the coming days.
But it should be understood that in the very near future, investors may need a respite, which, before continuing growth, will provoke consolidation at current levels or below, ”Zuborev predicted.
Zuborev, pointed to the RSI indicator (an indicator of relative strength that allows you to assess who – buyers or sellers – had a greater influence on the price for a selected period), which is in the overbought zone for Cardano.
This means that the price can turn down at any moment, provoking a short-term correction.
It is expected that smart contracts will appear on the Cardano network in September 2021, added Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service.
In Nikita opinion, after the announcement of the exact date and up to the launch of smart contracts, the altcoin rate has a chance to grow significantly.
The expert emphasized that the asset shows positive dynamics not only thanks to the news about the project itself, but also in response to the general rise of the crypto market.
On August 11, the bitcoin rate for the first time since mid-May reached $ 46.7 thousand, today it is $ 46.4 thousand.
Over the last month, the cryptocurrency has risen in price by more than 50%, but many altcoins, including Cardano, outstripped it in terms of profitability.
The head of the data analysis department of CEX.IO Broker Yuri Mazur noted that market participants have long been waiting for positive news from the creators of Cardano.
The expert believes that the altcoin will remain bullish. At the same time, the specialist predicts that the growth of the asset will be limited by the level of $ 2.5, that is, 25% higher than the current values.
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