Can Cardano’s Ongoing Development Help Its Price Climb Higher?

2021/11/10 09:20:49

The crypto market has remained stable in recent days, with bulls finally pushing through resistance levels in the past 24 hours. The image on a somewhat higher timescale is dominated by both buyers and suppliers, and that sentiment translated into BTC hitting its new all-time high as it passed the $68,500 mark.

Bitcoin and altcoins seemed to be drifting apart in terms of correlation, with BTC moving around the $60,000 mark for a few weeks and altcoins being under pressure earlier this month are starting to rise. 

However, Bitcoin managed to hit a new all-time high, and numerous altcoins followed. A couple of cryptos still haven’t managed to reach their ATH levels yet, one of these being Cardano, one of the greatest instances of markets drifting lower after initially outperforming Bitcoin.

Cardano was the first among the top five cryptos in market cap to break through the all-time highs set in May. However, the markets have shifted, with ADA crypto falling and the rest of the market nearing their May highs.

Nonetheless, the Cardano project's core does not appear to follow the trend of its price. In other terms, the community's updates and advancements are prospering despite the mini downtrend in price.

Cardano Wallet Count Surges to 2 million

The Cardano Foundation revealed on Monday that there are now over 2 million Cardano wallets. The network passed the previous milestone of 1 million ADA wallets earlier in May this year.

The primary reason for the surge in the number of wallets can be associated with the recent big upgrade on the Cardano network – Alonzo, a hard fork, allowing smart contracts to run on its network. Once the Alonzo update is effectively deployed, the Cardano network will be fully interoperable with Ethereum's smart contract framework. As a result, the Cardano network is expected to expand even more.

The second speculative reason can be the shift in his attention to increasing blockchain use in Africa. In a tweet last week, Cardano's creator, Charles Hoskinson, indicated that 5 million Ethiopian pupils are on pace to receive an ID using the Cardano blockchain to track their academic progress.

Cardano’s Tech Development Progresses

Post-Alonzo, Cardano's technological growth is gaining speed. During an ask-me-anything session, Hoskinson was questioned about the progress of Cardano's layer-two scaling solution, Hydra, where he said that they are adding resources to Hydra, have been looking for teams to parallelize the tasks because it's a significant commercial priority. He also added that it would be critical to offload a significant portion of the transaction volume generated by all of the new apps.

Fund6 Raises $4 million, Almost Double the Previous Round

To provide some context, Project Catalyst was founded a year ago to gain public support for Cardano-based projects. It's crucial to Cardano's goal of establishing on-chain governance through the use of treasury money to fund innovation. After the first stages of an idea, cooperation, and submission, ADA owners vote on the initiatives they want to see financed. Holders of the five specific wallets have the option of voting yes or no on the proposed proposals.

Fund6, the most recent round of voting, was branded the biggest and greatest innovation fund ever by developers of IOHK. A total of $4 million was available in this round of financing. This is nearly double the amount of money available to Fund5, which had $2.125 million available. Daniel Ribar, who works in the public and media department of Cardano Project Catalyst, has revealed the results of the Fund6 vote. He took the opportunity to emphasize that Project Catalyst is a paradigm of governance transparency.

Only 20 of the over 102 concepts submitted met all of the criteria, including budgetary constraints, to be considered for a portion of the public financing. An open-source SDK for smart contract developers, SaaS, and a wallet avatar customization option was the top three projects with the most votes.

Cardano (ADA) Price Analysis

With a market valuation now trumping $77 billion, according to Coinmarketcap, the ADA cryptocurrency is less than $3b away from reaching a new milestone. However, it is not quite close to its immediate peer, Binance Coin (BNB), which has topped $105 billion in market capitalization as of November 9.

The buyers' power was high once the market started an upswing from $1 a few months ago. The momentum pushed prices to new highs of $3 and even broke past it without any big setbacks. However, after hitting resistance, the trend shifted, as shown in the below price chart of ADA/USDT. The market fell into a pullback phase, and the selling gained momentum every step of the way.

Cardano Price Chart on the Daily Timeframe on KuCoin | Source: ADA/USDT

But as far as the current price action is concerned, the ADA coin is now trading at $2.33, around a key resistance level that dates back a month ago. This level might as well be the market's bottom, with Cardano absorbing the positive sentiment in the whole crypto market.

Stay tuned and watch the KuCoin Blog for the follow-up articles related to this topic. All the best!

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