Summary
- The Mary hard fork upgrade has made it possible for native tokens to be created on the Cardano network. This could boost demand.
- The Alonzo upgrade is expected to be launched soon to provide smart contracts, thus possibly propelling up prices.
The recent push and pull between the bears and bulls for ADA was on show once more, even as the digital asset rose marginally by 5.7% in 24 hours to trade for $1.26 at the time of writing. At that price, ADA has lost 1.3% of its value in the past seven days.
A solid foundation for a price takeoff
Cardano has recently launched its first stablecoin. The stablecoin, AgeUSD has a new algorithm and will be launched on the Cardano network. The stablecoin is an outcome of the cooperation between Input-Output Global, Emurgo, and the Ergo Foundation. These are the principal developers of the AgeUSD stablecoin.
Cardano’s Mary hard fork upgrade has recently enabled the Cardano Foundation to launch a registry for native tokens for on-chain identifiers. Cardano will control the data on the native token in a regulated register. Moreover, the registry can combine minting regulations, token addresses, hashes, and public keys of on-chain identifiers.
ADA’s strong standing has won it a place in the digital currency platform IRA. The company recently announced the addition of ADA to the list of assets available on its platform. This signifies a promising growth outlook for the cryptocurrency.
Elsewhere, ADA will be available for use on iTrustCapital retirement accounts. iTrustCapital enables investors to have access to valuable metals such as gold and silver. The clients of iTrustCapital are charged a one percent trading fee, with no taxes included. This will expose ADA to a larger client pool.
The founder of ADA, Charles Hoskinson, in a recent interview, spoke about its much-publicized project in Africa, specifically Ethiopia. The African project is among the largest and most promising projects by IOG. Therefore, it will likely determine the trajectory taken by ADA prices in the coming months.
Hoskinson revealed that there will soon be a special Cardano360 in Africa, and more information will be disclosed. Furthermore, Hoskinson added that Input-Output Global (IOG) has collaborated with SingularityNET to merge their offices in Ethiopia.
The promise of smart contracts
Cardano has also turned its focus on strengthening its standing in the smart contracts segment. The company is counting on the conclusion of the Alonzo Upgrade is to help towards this. The Alonzo upgrade is expected to build the infrastructure and add equipment for the development of a functional smart contract on ADA. Coding for the smart contracts will be done using the Plutus language which is native.
Cardano’s move to establish its foothold on the DeFi segment has also hit a new milestone. A founding entity of ADA, Emurgo has recently launched a beta model of the MetaMask-like app known as the Yoroi Wallet dApp connector. This is intended to be a doorway to the decentralized application ecosystem. Successful venture in the DeFi segment by Cardano will boost ADA prices.
ADA/USD technical outlook
ADA will find the first support at $1.25, while the second support will be at $1.23. If the bulls drive the price upwards, the first resistance level will be established at $1.26 and the second one will be at $1.31.
