Automated market maker Cardaswap will get bridged to the Cardano blockchain after successful completion of the Alonzo hard fork.
The hard fork combinator event scheduled for September 12 is a major milestone as Cardano ushers in a transformative era of “smart contracts capability.”
ADA has surged 31% in the past two weeks, analysts set the next target at $3.
81% of participants on Polymarket bet in favour of Cardano’s smart contract launch by October 1, 2021.
As non-fungible token creators consider minting NFTs on Ethereum “unfeasible” due to high transaction costs, Cardano offers a viable and low relative cost alternative on its mainnet.
ADA rally continues as Alonzo Hard Fork event draws close
Input Output Hong Kong (IOHK), the blockchain development company behind Cardano, shared an update on August 26 outlining the final implementation in the launch of Daedalus, the full node wallet for native cryptocurrency ADA.
The development team is counting down to the Alonzo Hard Fork scheduled for September 12. The network is now prepared for a public Alonzo testnet hard fork.
Cardano price rallied over 30% in two weeks, and the announcement is driving the rally higher. ADA hit an all-time high of $2.95 last week, and analysts expect the altcoin to hit a target of $3.
Benjamin Cowen, a cryptocurrency analyst and YouTuber, recently shared his analysis in a strategy session on the video network. Cowen highlights the correlation between Cardano and Bitcoin. If Bitcoin stays above 20-week Simple Moving Average (SMA), Cowen expects Cardano to continue its price rally.
Is ADA likely to hit $3.00? The answer to that question likely is just if Bitcoin stays above the 20-week (moving average), it lies with that answer. If Bitcoin is able to stay above the 20-week for just… a day or two, definitely the next few weeks it seems very likely that ADA is going to blast through the $3.00 milestone.
The Cardano community now has renewed confidence in its smart contract launch on the mainnet following the updated announcement and the price rally. It is evident from a bet on the launch of smart contracts on the Cardano network. In an open-betting pool on Polymarket, a global information markets platform, 81% of the participants are in favor of Cardano’s mainnet launch.
Up from 64% eight weeks ago, now 81% participants are confident that smart contracts will arrive on Cardano mainnet by October 1, 2021.
On August 1, the founder of Cardano, Charles Hoskinson, updated the community on updates regarding the blockchain. He claimed that things are on schedule and that things are moving along nicely in regards to the Alonzo hard fork. This is a showcase that the blockchain is constantly being improved upon, and with the media attention, the ADA Tokens are bound to see an increase, especially given the increase in the circulating supply we’ll end up seeing after the hard fork.
EMURGO, which is a founding Cardano (ADA) entity, announced that it will launch a new platform intended to bridge the interaction between ADA users and decentralized applications (dApps) on the blockchain network. This will be done through the rollout of the Yorodi dApp connector, which will essentially get ADA holders access to decentralized applications on the Cardano blockchain directly from their browsers through a plugin. Through this plugin we can expect a much higher level of Cardano activity in terms of the circulating supply.
Should you buy Cardano (ADA)?
On August 1, Cardano (ADA) had a value of $1.31.
It experienced its all-time high value of $2.45 on May 16 of 2020, which gives us a perspective of how high the token has risen in value historically. When we compare it to its value on August 1, there is a 46% difference.
However, to get a clearer perspective of its recent hikes and drops in value, we will be analyzing its performance in July.
On July 4, it got up to $1.49, making it one of its highest recent points. On July 20, it dropped to $1.02, which gives us a perspective as to how low it has gone. Comparing July’s high with the all-time high, there is a 39% drop in value, or in other words, that much potential for the token to regain its value.
According to data from IntoTheBlock, Cardano (ADA) has experienced $16.41 billion in transactions greater than $100.000 in the last 7 days.
Furthermore, we can see an 8% increase in the trading volume of ADA tokens within the last 24 hours, which signals a heightened activity of the blockchain.
This being the case, at $1.31, ADA might be a worthwhile purchase as we can expect its value to rise by 40% after the hard fork rolls out, which would result in a value of $1.83 within the span of the month.
The Cardano project is very close to rolling out its smart contracts feature called Alonzo. IOHK, the development team behind the Cardano blockchain, is working to get the latest update that will add the long-awaited smart contracts to go live as of October 1st. Will the update occur within the established dates? Most people think it won’t.
Cardano is currently the fifth-largest blockchain by market capitalization. In 2021 it has generated great expectations and this contributed to the growth that its token ADA has experienced. The decentralized blockchain project is one of Ethereum’s biggest rivals on the market. For this reason, it is not surprising that users want to bet on their progress. This is what is currently happening in the Polymarket decentralized prediction market, based on the Polygon sidechain.
What impact will Alonzo have on the Price of Cardano (ADA)?
Prediction markets allow people to bet on the outcomes of real-world events, and somehow provide a way to know what people think about a particular situation. Currently, a group of users is betting on whether Cardano will launch the smart contracts by October 1, and most participants are skeptical of Cardano’s schedule. Shares traded at $ 0.43 for “yes” and $ 0.57 for “no”. Since the most expensive bets are the most correct, this indicates that market users are currently leaning more towards a prediction that indicates that smart contracts will not be available on time.
These bets do not seem to worry the founder of Cardano, Charles Hoskinson. In fact, he tweeted the page along with the comment “People, you really make me laugh.”
Smart Contracts arrive on the Cardano (ADA) Blockchain in August
What is the Goguen stage of Cardano’s development plan based on?
Since its founding in 2015, Cardano has been one of the most cautious developments in the ecosystem, adding features slowly and after multiple extensive research and testing. Today, six years after its launch, a new stage arrives for the blockchain that will put it to the test, allowing it to compete with the other third-generation blockchains such as Solana, Avalanche, Tezos, and with the main rival: Ethereum.
Following an elaborate development plan divided into stages, Cardano is in the Goguen era, which is the most significant for the blockchain because it will add support for smart contracts, native tokens and will open the possibilities to build a DeFi ecosystem within this network.
In order to do this, Cardano is performing a multi-phase upgrade known as ‘Alonzo’. Each phase of Alonzo – Blue, White and Purple – will bring more users, functionalities, and features to the network. On Thursday, July 15, the IOHK team successfully deployed the Alonzo White fork in the testnet. Once all the phases of Alonzo finish, Cardano will finally have functionalities such as DeFi and dApps.
This deployment is expected to be fully implemented between August and September of this year and launched on October 1st.
After years of building a foundation in Africa, Cardano and its developer Input Output Global (IOG) have been making considerable progress on the region. On April 30th, 2021, the company announced its partnership with World Mobile, a mobile network to connect millions and provide millions with “affordable” local internet connections.
At the beginning of July, the CEO of World Mobile Micky Watkins talked with Cardano founder Charles Hoskinson on the reasons that make Africa ideal for the partnership. Watkins acknowledged the high demand in the region to access the internet. Hoskinson added:
Internet is so much more than utility – it’s a human condition. It allows us to talk to eachother, connect with eachother, share ideas, and it’s the single biggest driver of change throughout the world. It spreads freedom, financial freedom, economic identity.
The partnership will build a network on top of Cardano and its blockchain infrastructure which will include IOG’s Atala PRISM solution. In a more recent interview with Delphi Digital, Watkins discussed how World Mobile combines a range of technologies leveraging a distributed infrastructure on the blockchain and a token supported for IOG.
A Scalable Solution On Cardano For A Problem Affecting Millions
In the interview, the COOs of World Mobile Alan Omnet and Andrew Soper also answer some questions on why they chose Cardano for the project. Omnet revealed that they considered other networks, such as Ethereum, but they believe that the transition from a proof-of-work consensus to a proof-of-stake could bring issues.
In addition, they called Cardano a more scalable network. The project and the platform have found themselves at a “right time”, as the network prepares to deploy its smart contract capabilities around September 2021 with the third and final hard fork combinator (HFC) event “Alonzo”. Omnet said:
(Cardano) has been formally proven that it’s going to work when it goes live, and when you’re building a financial network and the financial system and foundational infrastructure, you want to know that it is going to work from the start.
The platform’s commercial side was another appealed for World Mobile, as IOG has been growing a team on Africa for a while with close relationships with local governments, educating the population, and training local human talent. On their implementation, Omnet clarified that they are building a hybrid public-private chain.
Cardano will be the public component and the World Mobile Chain, running as a side chain, the private. The former will also operate as the public financial settlement layer, the latter as the distributed data layer. The project is on its latest iteration, integrating the latest changes introduced on Cardano by the previous HFC events.
So now we’re integrating that. It’s planned to be complete by the end of the year with the digital ID and full commercial rollout. So we’re not dependent on a smart contract piece to launch. However, we will add smart contracts as they become available.
Watkins added that the partnership was formed from two different visions, but with a common goal. IOG seeks to bank the unbanked, and World Mobile connects the unconnected. Plutus is well on its way for launch by late 2021 with Alonzo moving forwards on its testnet.
In the meantime, World Mobile continues to consolidate partnerships in different sectors. Via their Twitter handle, the company announced a new partnership with Fulham FC, one of the most important football clubs in London. Watkins said the following on the cooperation, calling it a major accomplishment for the blockchain industry:
We are so excited to begin this partnership with Fulham FC. It’s crucial to us that we share the same values as our partners, and we’re confident that based on Fulham FC’s history, we have a shared viewpoint. This partnership will help spread the word on our mission to connect Africa and beyond, giving everyone an opportunity to get involved.
Cardano will now be able to offer smart contracts and other blockchain applications.
This 2nd stage in a multi-stage “alonzo” process is called “alonzo white”.
The upgrade could help the company compete with the popular ethereum network.
The cardano network has completed an upgrade that will allow it to incorporate more advanced smart contracts and decentralized finance applications to its blockchain.
The Swiss company’s developer Input Output HK, a research and blockchain engineering firm, made the announcement in a tweet on Wednesday.
“Delighted to report around 19.44 UTC today we successfully forked the alonzo testnet to the new alonzo white node. The new network is happily making blocks already,” the company tweeted.
Smart contracts are effectively contracts that execute automatically once a series of conditions have been met. They also allow engineers to use the blockchain to perform a range of functions like send information, or documents. DeFi applications allow two counterparties to exchange capital, or assets, without an intermediary.
The Cardano Foundation has launched a developer portal to aid developers to build on the network.
Ten NFTAs were minted in celebration of the launch.
The Cardano Foundation on July 12 announced the launch of the Cardano Developer Portal. The portal launch was announced in a tweet. According to the tweet, the goal of the portal is to make building on Cardano easier using ‘brand new content and resources.’
Created by Ethereum co-founder Charles Hoskinson, Cardano is a third-generation, Proof of Stake (PoS) blockchain platform. The decentralised platform was launched in 2017 with its native coin ADA named after the mathematician Ada Lovelace. It was created to be more efficient than existing Proof of Work networks like Ethereum. Scalability, interoperability, and sustainability are touted as key features that put Cardano above PoW networks like Ethereum.
Easier building on the Cardano blockchain
The developer portal showcases some tools and features on the network that developers will find useful. These include; The ability to integrate Cardano into websites and applications, NFT and token creation without the use of smart contracts, and Transaction tracking through the use of metadata.
To celebrate the launch, the team minted the first-ever Non-Fungible Tokens of Appreciation (NFTAs) on the Cardano network.
“After months of writing, polishing and checking, we are confident the portal now has a very solid basis, covering everything currently possible on the Cardano mainnet. Whether you want to implement transaction metadata, mint native tokens, integrate Cardano, operate a stake pool or get your project funded: there is something for pretty much everyone. All this, right before the Alonzo hard fork which will bring smart contract capabilities. So yes, I am super excited,” says Tommy Kammerer, Developer Community Lead.
The ten NFTAs are all based on thumbs-up photos of Cardano community members expressing their approval for the newly launched portal. They come with a QR code, which, when scanned, leads to the Cardano blockchain explorer where a user can verify ownership of the token. The tokens also grant the bearer the chance to highlight a topic of choice on the developer portal.
Sidney Vollmer, head of Brand and Communications at the Cardano Foundation added;
Both the scope of topics covered in the Portal and the way that we are promoting them with these NFTAs show the amazing possibilities Cardano offers. It is something lots of people still need to get accustomed to. With the help of our community, they will.
In September 2020, the concept of tokenization, the representation of an asset as a token on the blockchain, and explored what tokenization may look like in the near future on Cardano.
It was discovered that with the arrival of native custom token capabilities on Cardano as a component of Goguen, the stage will be set for the proliferation of tokens that power decentralized applications (DApps) and smart contracts on the blockchain.
Tokenization is one of the most powerful use cases for blockchain technology. But while it was looked in-depth at the types of blockchain-based tokens and the benefits of representing assets as tokens, it hasn’t explored yet which industries could be transformed most significantly by tokenized assets on the blockchain.
Real Estate is particularly ripe for disruption by tokenization, it is equally important focus area in the quest for mainstream blockchain adoption.
The real estate industry has long been a favorite of wealthy traditional investors, who see bricks and mortar as a safe hedge against stock market volatility and other types of assets.
But real estate’s attractiveness to high net worth individuals raises the barrier to entry for investors without deep pockets, as properties are most often purchased as a single lot—and prices usually start in the hundreds of thousands of euros.
To help smaller investors pool their resources, property crowdfunding and joint venture investment schemes exist, but they are fraught with their own pain points. For example, selling a partial stake in a jointly owned property would involve finding a buyer for your portion, selling the entire property, or having your equity bought out by the other investors.
As a result, liquidity is often the most common problem with these approaches to real estate investing. Simply put, it is often too difficult to exit your position, or takes too long to realize profits from your property investment.
Instead, investors are turning to an alternative option—tokenization. According to professional services firm EY, non-fungible tokens (NFTs), are particularly well-suited to use in real estate because two properties rarely share the same value and features. NFTs would allow a single property to be represented as a predefined number of tokens.
Let’s say a property worth US$1m has ten original investors, all of whom own 10 tokens each, with one token worth US$10,000. These tokens would be stored as native tokens on a blockchain protocol and could be traded on secondary marketplaces peer-to-peer.
Alice, one of the token holders, decides she would like to release 50% of the equity from her investment, as the property has gone up in value. Instead of finding a buyer for her equity stake, or asking the other investors to buy her share of the property, Alice would simply list five tokens on a secondary marketplace powered by blockchain.
The purchaser, who could be anywhere in the world, would buy the tokens and become the new owner of 5% of the property. The ownership agreement could then be delivered and signed in the form of a smart contract—completely transforming the way we invest in property and opening access to investors with smaller portfolios.
The future of tokenization
Almost any asset can be tokenized, and a huge range of contract agreements can be represented through a smart contract.
But despite the clear benefits of blockchain-powered tokens, innovation will only happen once regulators worldwide recognize tokenization and adapt existing legislation to enable it to flourish. This is one of the core reasons that the Cardano Foundation is dedicated to helping shape legislation globally.
The future of tokenization also lies in its ease of access for the masses. For example, in DeFi, consumer desire for greater APY on savings and investments is strong, and lending protocols’ value proposition is clear—but access and a steep user learning curve is a major barrier to adoption.
Ease of access is decided by the complexity of both the underlying blockchain protocol and the way smart contracts are deployed on it. On the Cardano blockchain, there are multiple initiatives to promote the inclusion of all participants regardless of their technical ability.
Investors are showing signs of becoming increasingly confident in the potential of smaller cryptocurrencies, despite this quarter’s market correction, with new eToro data revealing increases in the numbers of cryptoassets being held during the last quarter (Q2).
Perhaps surprisingly, Cardano’s ADA has leapfrogged Bitcoin to become the most held in the second quarter of 2021, seeing a 51 per cent increase on the previous quarter. Bitcoin, which led the cryptoasset bull run at the start of the year, remained popular with a 42 per cent increase in demand.
However, it was eclipsed by ADA and slipped from first to second place.
Simon Peters, crypto market analyst at eToro said the growth and use case potential for Cardano’s native ADA token had clearly provided plenty of attraction for investors.
“During Q2, Cardano provided a clearer roadmap for its upcoming Alonzo hardfork – currently in a testing phase,” he said.
“If successful, it will bring smart contract functionality by allowing the writing and deployment of smart contracts for the first time on the Cardano blockchain.
“This upgrade will be significant as it will enable developers to build projects on the network, helping Cardano to position itself as a real ‘competitor’ to the likes of Ethereum.
“The price of ADA climbed 15 per cent over the last quarter, suggesting investor optimism around the Alonzo hard fork and Cardano’s ability to challenge Ethereum long-term.”
Ethereum, which has seen a 220 per cent price rise so far this year, also gained in popularity with a 79 per cent increase in investors holding the asset. This is ahead of the highly-anticipated London hardfork, slated for later this month, which will see increased functionality added to the network and preparation for the Serenity (ETH 2.0) upgrade scheduled for next year. It will also see the EIP-1559 update which will change how gas fees are paid on Ethereum 1.0 going forward. This will see base fees adjusted to market rates, with the option of speeding up transactions by tipping miners.
“Cryptoassets have had an exciting year, with big milestones achieved in terms of price movements and increased institutional investment signalling more adoption by the traditional financial services ecosystem,” added Simon Peters.
“This emerging asset class continues to revolutionise many aspects of financial services and the long-term fundamentals remain strong. However, as we have seen over the past few months, there will be bumps along the way, and we expect volatility to continue.
“We’ve seen issues such as energy usage becoming major talking points and the next few months will likely see more exciting developments. We may well see a greater proportion of renewable energy sources supporting miners and other countries taking China’s place as the leading asset miner following its recent ban.
“No matter the headlines we urge retail investors to be mindful of the risks when investing in crypto and to do their research before investing.”
Most held cryptoassets among eToro clients globally in Q2 2021
Q1 2021 rank
Ethereum Classic (ETC)
Investors diversifying in the search for the ‘next Bitcoin’
Despite attention mainly focusing on the cryptoassets with the largest market caps, the biggest moves in Q2 came from smaller cryptoassets, with Tron (TRX) and Ethereum Classic (ETC) leading the charge. Tron (TRX) in particular saw impressive gains, with a 163 per cent increase in global users holding the asset in Q2 compared to Q1 of this year, and Ethereum Classic saw a 151 per cent rise quarter on quarter, alongside a 247 per cent year-on-year gain.
“Rather than focus solely on Bitcoin and Ether, where many investors can only own a fraction of a coin, we are seeing increasing demand for lower priced coins,” explained Mr Peters.
“With owning one Bitcoin out of reach for most retail investors, many are looking for cheaper alternatives like ADA, MIOTA and TRX, all of which are priced around $1. With staking rewards available on eToro for Tron and Cardano, investors are now able to reap rewards for holding these assets long term which is helping to drive demand.
“The emergence and increasing popularity of altcoins means the crypto ecosystem is becoming stronger, with greater diversity and more and more use cases. It’s great to see investors looking beyond store of value, and opening up their portfolios to assets they believe will not only help hedge against growing issues such as inflation, but provide solutions other assets might be encountering.”
In order to stake your ADA, you’ll need to move your funds to a wallet that supports staking, such as Daedalus, Yoroi, or AdaLite. You’ll then need to decide on a stake pool to delegate your wallet to. With hundreds of active stake pools, choosing the best pool for you can be daunting. When you delegate to a stake pool, you are delegating your entire wallet, not a specific amount of ADA. Whenever you add or remove funds from your wallet, your staked balance that is eligible to earn rewards will be updated.
A 2 ADA deposit is required to delegate your wallet. You can get this deposit back if you undelegate your wallet. There will also be a transaction fee for registering your wallet to stake (about 0.17 ADA), which you will not get back. This fee will also be assessed any time you choose to move your stake to another pool.
Your newly delegated stake will be included in your chosen stake pool at the beginning of the next epoch, as we explain next.
2. First stake snapshot
The accounting periods on the Cardano blockchain are called epochs. These occur every five days, and are the periods of time in which pools produce blocks and delegators earn rewards. The number of blocks a pool is eligible to produce is a random process governed by the amount of active stake in the stake pool. Active stake is the amount of ADA delegated to a stake pool during the stake snapshot that occurred at the beginning of the previous epoch.
Your funds are never “locked” when delegating to a pool and are solely under your control. You are free to spend your ADA whenever you’d like, and the stake pool does not have access to your funds. There is no risk of losing ADA when delegating your wallet.
3. Rewards are earned
Once your stake has been included in a stake snapshot, it will become active during the following epoch, which means it is eligible to earn rewards. You will earn a share of your stake pool’s rewards based on the amount of stake you have in the pool. The more blocks the pool produces during the epoch, the more rewards you will earn.
4. Rewards are calculated
After each epoch has concluded, the rewards for each of the stake pool’s delegators will be calculated based on the number of blocks produced by the pool.
5. Rewards are paid!
The rewards you earned during an epoch will be paid out at the beginning of the next epoch (1 full epoch after the rewards were earned). These rewards will be automatically included in your staked balance (and hence you will earn compounding returns on your delegation!), so you don’t need to manually claim your rewards every epoch in order to have them included. It will take 15 to 20 days between the time you first delegate your ADA and when you receive your first reward payout. After this, you will receive rewards every epoch (5 days) which were earned by your active stake from 2 epochs prior.