The sobering reality of Cardano’s Alonzo hard fork

They say that in the market, you buy the hype and sell the reality. Cardano (ADA) is finding that out the hard way.

A month ago, Cardano touched an all-time high at just over $3, propelled by news of its Alonzo hard fork that launched Plutus-powered smart contracts. It was a development that had been widely anticipated in the cryptocurrency community for months. The smart contract functionality eventually targets allowing users to create decentralized applications and mint Non-fungible Tokens (NFTs) on the Cardano blockchain. With one of the most active developer communities, the Alonzo hard fork was meant to take Cardano to the next level. Which it did. For a while.

Cardano, which was trading at just over a dollar towards the end of July, suddenly sprouted wings and started an upward climb. By the first week of September, ADA had touched a high of $3 and more than doubled its market cap with over $99 billion. It looked it was finally ready to assume its mantle as Ethereum’s challenger.

However, then started a downward slide in ADA price, perhaps propelled by the realization that it would take some time before all of the promised functionalities to be implemented on the Cardano blockchain. Experts pointed to how a similar timeline for Ethereum had taken over two years. After the hype had been bought, it was now time to sell the reality.

That is not to say that it’s all doom and gloom for Cardano. ADA’s price now seems to have settled in at just over $2, still double what was the case just a couple of months ago. As Cardano edges more and more towards the promised land, ADA will slowly make its way upwards. But it would be unrealistic to expect any of this to happen within the space of a few months or even a year. Rome, as they say, wasn’t built in a day.

Leave a Reply

Your email address will not be published. Required fields are marked *