Cardano’s price has only gone down since its inception, despite growing interest in the Alonzo hard fork.
While Ethereum and Bitcoin have hit many all-time highs over the last two months, Cardano hasn’t. The launch of smart contracts did not appear to give it much of a boost, and its market valuation continues to fall.
ADA’s price peaked at over $3, and its market cap nearly surpassed $100 billion. This was followed by a steep drop-off on September 7th alongside the rest of the crypto market, when El Salvador’s Bitcoin law took effect.
Input-Output, the developers behind Cardano, verified the implementation of the Alonzo upgrade nearly a week later. By using the Plutus framework, smart contract compatibility was added to the network. The value of ADA rose briefly to $2.71 in the aftereffects, then fell back to $2.50 the next day.
Since then, the outlook for Cardano has been bleak. It has steadily plummeted to its lowest value point in 90 days after failing to surge alongside Bitcoin in October. Its market capitalization has dropped beneath $50 billion, and it has dropped out of the top five cryptocurrencies.
Cardano as Payment
Cardano and Ethereum were regular rivals by the cryptocurrency world earlier this year, despite CTO Romain Pellerin’s disapproval. According to Pellerin, it will be “on par with Ethereum” after removing smart contracts, with a substantially lower carbon footprint than either Ethereum or Bitcoin.
As a result, Cardano founder Charles Hoskinson has urged for Tesla to accept ADA as a form of payment. Elon Musk announced in May that his company would no longer accept Bitcoin payments due to the cryptocurrency’s mining causing environmental damage. Cardano does not require such high energy consumption because it is a proof-of-stake network.
While Cardano awaited smart contracts, Solana, a competing blockchain, grew at an exponential rate during the year. It is currently the fifth-largest cryptocurrency market capitalization, thanks to its proof-of-history consensus methodology, which permits for a huge volume of TPS and minimal energy usage.
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