- Cardano’s high stakes African project key to its growth.
- ADA’s prices could gain from Cardano’s venture into smart contracts.
- Cardano is keen on limiting the domination of its blockchain by “whales.”
Cardano gained a marginal 0.3% in 24 hours to trade at $1.219 at the time of writing. The cryptocurrency has been trading sideways for the past five days but has risen by 4.8% over its price recorded 7 days ago. ADA has been among the best-performing cryptocurrencies over the past year, during which it has risen by 574%.
Time to live up to the hype
Cardano has for a long time been billed as an “Ethereum killer,” but it is yet to live up to the title. The listing of ADA on Coinbase about two weeks ago was among its biggest gains in the recent past. However, that has not had the same impact on ADA’s prices as the hashtag “RelistXRP” had on Ripple.
Nonetheless, demand for Cardano remains high, according to founder Charles Hoskinson. He has this week described the demand as “overwhelming.”
As part of its focus on efficiency and expansion plan, Cardano plans to launch its blockchain on the Alonzo testnet. According to the company’s CEO Charles Hoskinson, the launch could come as early as next month and is expected to enable the Cardano blockchain to carry out smart contracts. The Alonzo upgrade will be in the form of a hard fork but will be initially carried out on a test basis. The finalized mainnet rollout will be ready in August 2021.
Cardano’s entry into the smart contracts segment will offer an excellent platform to expand its market footprint and help propel ADA prices higher. Also, it will present the Cardano blockchain with an opportunity to take on Ethereum, which has had a strong grip on smart contracts. It will also be able to leverage on its efficiency to create a competitive alternative to the Ethereum decentralized finance (DeFi) protocol.
In an effort to endear it to users, Cardano is reducing its d-parameter and adjusting the k-parameter. The development will provide a fair chance to all users by preventing large-scale pools from having control over the production of blocks. In essence, Cardano hopes that this will minimize the chances of whales dominating the blockchain, thereby making it attractive to more users.
The high stakes project
Cardano has this week announced a breakthrough in one of its premier projects. Through an “ask me anything” session, CEO Charles Hoskinson revealed that the project could become a reality as soon as April. Dubbed “Africa Special,” the project has been billed as the largest deployment of blockchain in the world and will initially be launched in Ethiopia.
Hoskinson revealed that the company is in the process of hiring staff for its Ethiopian project. He added that the previous delays had been caused by Cardano’s failure to pass the proposal by a special committee as required by local laws, but the matter was resolved and signed off on March 26th.
The African project could prove to be Cardano’s most significant turning point yet. It aims to create opportunities for the continent’s people through digital identities linked to Cardano’s ecosystem. These include access to credit facilities, insurance, efficient medical record-keeping, among other services, which will create $5 trillion worth of wealth. Success in this frontier will certainly propel ADA prices higher.
ADA prices will find the first support at $1.201 and the second support at $1.223. If it breaks past this level, it will encounter resistance at $1.271.