Morningstar Analyst: Cardano ($ADA) Could Help Form a "Big Three" of Mainstream Cryptos

Cardano (ADA), according to Amy Arnott, a cryptocurrency portfolio manager at Morningstar, could become one of the top three cryptocurrencies by market value and go mainstream, alongside Bitcoin and Ethereum.

Arnott supported the cryptocurrency launched by Ethereum co-founder Charles Hoskinson in an interview with Business Insider, calling it a potential altcoin that, along with BTC and ETH, could form a "big three" of mainstream cryptocurrencies.

She continued, "

Cardano is comparable to Ethereum in that it is a protocol with several technical uses. Cardano, as well as various stablecoins, have sparked a lot of interest.

Institutional investors have been "much more inclined to adopt cryptocurrencies and look at them as an investment asset," according to Arnott. We will "see other cryptocurrencies becoming more mainstream" if this trend continues, she stated, presumably referring to Cardano.

She also told the outlet that she would want to see a diversified cryptocurrency index fund in the form of an exchange-traded fund (ETF) that would allow investors to have a broad view of the market.

According to her, the SEC has yet to approve any cryptocurrency ETFs in the US, making it "very difficult for mainstream investors to obtain exposure to cryptocurrencies." An ETF like this could even assist to lessen cryptocurrency volatility by attracting more traditional investors with a lower risk profile.

The difficulties in determining a reasonable price for cryptocurrencies, which are not cash-generating assets, may also be contributing to the volatility. Some have dubbed Ether "digital gas" because of its application in DeFi and NFTs, and it has some usefulness that "should offer some type of price floor."

The same may be said of Cardano once it adds smart contract functionality, letting developers to build new DeFi apps on top of it. According to reports, the ADA network will soon be browser and mobile compatible, thanks to a major upgrade being developed by the project's crew. The Plutus application backend will now be able to operate in Javascript, the most extensively used programming language on the internet.

Input Output Hong Kong (IOHK), one of the firms behind the Cardano blockchain, announced the debut of Alonzo Blue 2.0's testnet for the cryptocurrency's blockchain last month. Alonzo Blue is part of a series of updates to the Cardano network that will let developers to create decentralized applications using smart contracts.

The Alonzo hard fork is part of the network's "Goguen" era, which is named after Joseph Goguen, a computer science professor at the University of California and Oxford. After the Shelley phase, when Cardano became a decentralized blockchain and community members became validators, the Goguen age began.

Blue, white, and purple will be the first three phases of Alonzo's release. Each one gradually opens up more to the general public until the upgrade's full integration is complete, which takes 90 days. The project is planned to be finished by the end of August. It will include a converter that will allow Ethereum's ERC20 tokens to run on the Cardano network.


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