Cryptocurrency News

Cardano price falls despite launch of smart contracts

  • InputOutputHK, the company behind Cardano, announced that the company had successfully deployed the Alonzo upgrade
  • Despite a successful smart contract launch the price of ADA dropped more than 10% today as investors "sold the news"
  • Now that smart contracts have launched, the question is whether Cardano can compete with other low-cost blockchains

Cardano has finally launched its smart contracts upgrade called Alonzo, but despite the successful launch, the price of ADA went down today. 

Cardano successfully deployed Alonzo Upgrade

InputOutputHK, the company behind Cardano, announced that the company had successfully deployed the Alonzo upgrade. The upgrade introduces smart contract features via the Plutus language on the Cardano blockchain. IOHK stated that this is just the beginning of what the company has been trying to accomplish.

Cardano aims to compete with the Ethereum ecosystem, but the project has seen a lot of criticism for not offering smart contract functionality. With the Alonzo fork, Cardano will now allow smart contracts to be written using Plutus scripts, which the team describes as “a purpose-built smart contract development language and execution platform using the functional programming language Haskell.”

It also added that 150 projects are developing concepts under Cardano’s innovation program Project Catalyst, and about 800 projects have applied for $4 million in funding. In the blog post, however, Cardano warned investors, explaining that the Dapps are primarily experimental at the moment. The project pointed out that there is a risk that bad actors will try to take advantage through hacks or exploits.

The price of ADA has fallen by more than 10%

The price of Cardano its token ADA surged as investors eagerly awaited the launch of smart contracts and were betting on their success. It was third on the market cap charts at an all-time high of just over $3 earlier this month. But it seems investors preferred to “sell the news,” as ADA saw its price plummet today, falling more than 10% from its high of $2.77 on Sunday to $2.37 at the time of writing.

Even though the price has fallen today, holders do not seem to be unhappy with Cardano’s recent performance. ADA is up more than 1,600% since the beginning of 2021, and with the successful launch of smart contracts, investors got what they were promised. The question now is whether Cardano can compete with other low-cost blockchains like Avalanche and Solana, as well as Ethereum.

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