ADA Drops 50% In One Week, Perfect Buying Opportunity?
Cardano (ADA) has had an impressive run since 2020. Its native token has soared beyond two major price marks at $1 and $2. Due to Bitcoin’s price recent retracement, investors could have another shot at buying ADA before a major milestone is deployed.
ADA trades at $1,48 with small losses in the daily chart and a 22% correction during the past week. In the monthly chart, Cardano’s native token still records a 22.1% profit.
As part of its Goguen era, Cardano has deployed several updates with 2 Hard Fork Combinator events, “Mary” and “Allegra”. Now, Input-Output Global (IOG) has been conducting a stress test for the components of HFC “Alonzo” and the smart contract platform to be implemented with this event, Plutus.
According to IOG’s latest update, the Plutus team has been working on improving specific elements of the platform to allow “constant space contract instances”. Thus, Plutus’ smart contract will have reduced “redundant events” captured and stored on the platform.
The Marlowe team, a programming language that will simplify the process of using smart contracts on Cardano, has been focused on the integration with Plutus application backend (PAB). Simultaneously, they have worked on the website design and developer’s documentation.
Cardano’s Alonzo On Track For Deployment
One of the main reasons Cardano could have experienced such a rally is due to the expectations of Plutus and its smart contract capabilities. DeFi had a boom during 2020’s summer and more competitors, such as Binance Smart Chain and Polkadot, have emerged and received a positive response from users.
Cardano could be a more decentralized, secure, and cost-efficient transaction. Cardano’s inventor and IOG’s CEO Charles Hoskinson recently gave an interview for the crypto news website Cryptobriefing. Hoskinson confirmed that IOG will launch a Pioneer Testnet “soon”.
This phase will extend for two months. Plutus will undergo a “feature freeze” at the end of June and will be a final step before its implementation. According to IOG’s CEO, developers are already working on the dApps:
It will be about four to six weeks to actually do the hard fork and turn on smart contracts for the mainnet. We have also started the Plutus Pioneer Program where we are training over 1,000 developers who expressed interest in writing decentralized applications (dApps) on Cardano.
Hoskinson added that Cardano’s new ecosystem will have dApps with various use cases such as NFT marketplaces, decentralized exchanges, lending and borrow platforms, oracles, stablecoins, and others. The platform will facilitate tools to migrate projects from Ethereum to Cardano (ADA). On this subject, Hoskinson said:
We are finalizing arrangements with two dozen different dApps or platforms to come on over. That will happen over the next 180 days. It is a little hard to begin that conversation (…). Usually, the conversation is not explicit migration from Ethereum to Cardano. Instead, what we have seen industry-wide is that projects want to become multi-chain.
With Bitcoin’s dominance on a downtrend, after dropping below 40%, and altcoins with negative performance, investors could take advantage of the moment to “buy the dip”. The crash has come before the full implementation of Plutus with “Alonzo” drives new users into the platform.