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ADA price might dive after delay in Cardano's Alonzo hardfork

  • Cardano announces a delay in the Alonzo hardfork in their latest development update. 
  • ADA price is likely to suffer the impact of the delay since earlier this month founder Charles Hoskinson slammed critics for their uncertainty on Cardano's smart contract rollout. 
  • Smart contract launch date is set to be pushed further in September due to the latest announcement. 

Cardano's latest updates may negatively impact the "Ethereum killer's" price rally. 

Alonzo hardfork delayed, development team pushes the event to September

Following several announcements from founder Charles Hoskinson on Twitter, the Cardano community developed a bullish outlook on the altcoin's price in the last two weeks. The recent update from Cardano is likely to reverse the trend since the Alonzo hardfork is delayed. ADA's developers have announced that the hardfork event is expected to go live on September 12, 2021. 

In a YouTube video outlining the progress of the Alonzo smart contracts rollout, Nigel Hemsley, Head of Delivery at Cardano, shared the internal and external team's milestones. Hemsley said, 

Outside of the actual teams, we've got our partners that continue to make progress on their dapps, and they're working towards the point where we can give them a Plutus application back-end so that they can finish it off and have a fully integrated dapp on our network.

Cardano's team has beenworking on the Plutus since April 12. Plutus is a platform that provides native smart contract language for the Cardano blockchain. The dev team is developing "Plutus core," which is the on-chain part of Plutus, as well as the "Plutus Application Framework" (PAF), also known as the off-chain part that enables interaction with smart contracts. 

There are internal (Cardano devs) and external teams (Decentralized application developers and exchanges) waiting for the smart contract rollout and currently testing the capability of the testnet based on the practice exercises that the dev team has shared.

Cardano's developers are working on the different components of the hardfork: the testnet will be forked first, on September 1, followed by the mainnet on September 12. 

Cardano is currently nurturing partnerships with 140 exchanges and over 300 pioneers in the community. Therefore, the delayed hardfork is likely to have an impact on Cardano's partners and ADA price. 

Analysts predict that the price is likely to retrace before rallying further.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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