After launching smart contract capabilities, Cardano’s price is only falling since, turning negative after the Alonzo hard fork so let’s read more about it in today’s Cardano ADA news.
While Ethereum and Bitcoin touched plenty of all-time highs in the past two months, Cardano didn’t really see some strong peaks since September. Launching smart contracts didn’t seem to put a lot of power on its shoulders and the market cap, therefore, continued to decline. As of September 2nd, this year, ADA’s price peaked at over $34 and its market cap surpassed $100 billion which was eventually followed by a steep dropoff on September 7th alongside the rest of the market when El Salvador’s BTC law took effect.
ADA 24-hour price chart (Source: Coingecko)
Less than a week later, Input-Output as the team behind Cardano, confirmed the deployment of the Alonzo upgrade which brought smart contract compatibility to the network using the Plutus framework. ADA’s price saw a short rise back to $2.71 in the aftermath but then dropped back under $2.50 the next day. Things were quite bearish for Cardano ever since as it failed to pump alongside bitcoin back in October and has steadily declined to its lowest point in the past three months. The market cap of Cardano now rests below $50 billion and lost its position as a top 5 crypto.
The CTO Romain Pellerin disapproved of the comparison because Cardano and Ethereum were pitted as competitors. Pellerin himself even framed Cardano as he blockchain that will be on par with Ethereum once the smart contracts drop with a lower carbon footprint than the one of Bitcoin even. For this reason, Charles Hoskinson who is the founder of Cardano argued that Tesla should accept ADA for payments while Elon Musk said his company will stop accepting Bitcoin payments because of the strong environmental impact caused by mining. As a proof of stake, Cardano doesn’t require heavy energy consumption.
Charles Hoskinson, IOHK Founder
However, after launching smart contracts, Cardano has only been dropping. On the other hand, its competitor Solana, saw a parabolic growth over the year thanks to its consensus model that draw investors’ attention and allowed for a high volume of TPS and low energy consumptions making it the fifth-highest crypto market cap.