Third-generation cryptocurrency Cardano (CCC:ADA-USD) has been on a tear this month.
Cardano has gained an incredible 116% in the last month. Its founder and crypto trailblazer, Charles Hoskinson, announced the highly anticipated Alonzo upgrade would be released in September. After the Alonzo hard fork, Cardano will allow for the execution of smart contracts on its network.
Hence, eco-friendly crypto could become a big name in decentralized finance.
Cardano has been one of the best-performing crypto since the beginning of the year. It gained a dumbfounding 1,400% since the start of the year, outperforming the industry stalwarts. The recent surge in its price has enabled it to leap past its peers and become the fourth most valuable digital asset.
Once the platform allows for the smart contracts, its price could skyrocket to new highs and climb even higher up the pecking order.
The Alonzo Hard Fork
Its community has heavily criticized Cardano for not offering smart contract support despite the promises. Moreover, some users are skeptical about whether the functionality will ever become a reality with the network. However, it seems that all those concerns will be put to rest in a month.
In a video released on YouTube, Nigel Hemsley, head of delivery for Cardano, stated that the Alonzo upgrade would be launched on Sept. 12.
The upgrade will allow Cardano to become a major player in the DeFi realm by incorporating smart-contract functionality, facilitating automated cryptocurrency lending and trading. Moreover, Cardano will have more utility to its users, with it being a proof-of-stake currency.
Moreover, the upgrade will also bolster tokenization and non-fungible token ideas. ERC-20 tokens might also be leveraged on the Cardano chain.
The upgrade will enable the digital to compete against Ethereum (CCC:ETH-USD), a juggernaut in the DeFi sector. However, Cardano’s advantages over Ethereum may be short-lived after the latter introduces its ETH 2.0 update. The update marks the transition of the crypto to a proof-of-stake model, which could reduce energy use by up to 99%.
Nevertheless, Cardano will benefit immensely from the update on multiple fronts and compete against the top cryptocurrencies for more market share in the DeFi space.
Price Prediction For ADA-USD
With the announcement of the Alonzo upgrade, it is interesting to see its impact on the ADA token’s price. Cardano has been on an incredible run in the past month and is likely to carry this momentum until the end of this year. At the time of writing, it trades at $2.65.
However, TradingBeasts is bearish on Cardano’s potential and could drop to $1.33 at the end of 2021. Moreover, it believes that the cryptocurrency could be trading at roughly $2.77 by the end of 2024. Additionally, LongForecast.com believes that Cardano could close out the year being valued at $3.63.
The Bottom Line For Cardano
The release of the Alonzo hard fork is likely to be a major event in Cardano’s history. It is likely to propel its value to new heights with the massive popularity of DeFi contracts, NFTs, and tokenomics.
Most analysts are bullish on Cardano’s potential to break through this year and cement its positioning as a top cryptocurrency. Therefore, Cardano is a crypto with a healthy long-term growth runway.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.