Cardano Launches Testnet Smart Contracts, Boosting ADA to New Highs

Cardano's testnet now supports smart contracts, pushing the price of the cryptocurrency beyond $3 for the first time. On Thursday, ADA, the Cardano blockchain's native token, soared to a new all-time high of $3.09, amidst a broader market recovery.

For the past month, the token has been rising in anticipation of the upcoming Alonzo hard fork, which will enable anybody to write and execute smart contracts on the Cardano network.

ADA's value increased by more than 137 percent during this time, making it the third-largest cryptocurrency with a market valuation of $96.8 billion, or 4.2 percent of the total market.

According to CoinGecko, the asset's price had corrected slightly by press time, trading hands at $3.05. The debut of smart contract technology, which is now available on a testnet, is the most likely cause of the recent rise.

This means that developers can begin developing decentralized applications now and test them in a test environment before releasing them to the general public.

Cardano will confront hurdles in the future.

Smart contracts are bits of code that automatically command and execute specified actions under predetermined circumstances, as coined by blockchain pioneer Nick Szabo in the 1990s.

Smart contracts made their debut in the cryptocurrency world on the Ethereum blockchain, but as more projects take advantage of the power of computer code, the industry is becoming more competitive.

While Cardano appears to be eager to get a piece of the action, it is unclear whether the project lead by Charles Hoskinson, one of Ethereum's initial developers, will be able to disrupt the competitor's network. Ethereum is presently king of the $95 billion decentralized finance (DeFi) market, with prominent protocols like as Aave, Maker, Curve, Uniswap, and Compound at the top. DeFi is a subset of the cryptocurrency business that enables more complex financial services than just buying and storing an item without the use of a centralized intermediary.

Multiple Ethereum systems are also available for non-fungible tokens (NFTs), online gaming, and other uses. NFTs are one-of-a-kind digital tokens that can be used to symbolize art, music, and even concert tickets.

In addition, other significant protocols such as Tron and EOS are competing in the market, implying that Cardano's road ahead would be difficult.

Report by Titin Zaimatus Sa'diyah


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