Cardano price targets $5 following smart contracts hard fork


  • Cardano gears up to compete with Ethereum, replacing Tether as the third-largest cryptocurrency by market capitalization.
  • Cardano differentiates itself from Ethereum by using an extended unspent transaction output model to predict transaction fees. 
  • Traders are bullish on Cardano, as the blockchain network can execute hundreds of simple transactions and complex scripts with Alonzo Hard Fork execution.

Smart contracts are set to go live on the Cardano mainnet within the next few hours. Analysts have a bullish outlook on the altcoin, predict a rally to a new all-time high. 

Cardano ranks third in market capitalization, competes with Ether for dominance

Cardano has claimed its spot as the third-largest cryptocurrency by market capitalization, second to Ethereum. ADA market cap is less than three times away from ETH, and trader sentiment is getting increasingly bullish as smart contracts go live on Cardano mainnet. 

Based on data from Santiment, a crypto intelligence platform, Cardano recovered 12.5% since the flash crash of September 7. Cardano traders are likely to get over-hyped closer to launch and crowd euphoria is considered bullish for the altcoin's price in the short-term. 

Crowd Euphoria (Cardano)

Crowd Euphoria in Cardano

The altcoin follows a model similar to Bitcoin, utilizing extended unspent transaction output (eUTXO). Using eUTXO Cardano offers enhanced security and predictability of transaction fees, thus approaching parallelization differently than Ethereum. 

Cardano’s Alonzo Upgrade inherited Bitcoin’s UTXO model, and it uses multiple UTXOs to decentralized power applications and enforces parallelization. This results in higher scalability for smart contract applications launched on the Cardano network. 

The Cardano development team expects dozens of projects that deployed smart contracts on the testnet to ramp up activity on the mainnet in the following months. 

Michaël van de Poppe, cryptocurrency analyst and founder of Eight Global, has predicted that the altcoin will likely hit $5. He expects a massive bounce in the altcoin’s price.

FXStreet analysts have observed a bullish fractal that could trigger a 16% upswing in ADA price. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Chainlink to present buy opportunity before LINK rises to $38

Chainlink price could create one of the most sought-after bullish entry setups in Point and Figure analysis: the Bullish Catapult. However, buyers must keep Chainlink above a certain price threshold, or the pattern will be invalidated.

More ChainLink news

SafeMoon bulls look for a breakout to $0.0000024

SafeMoon price is one of the best performers of the day, with moves as high as 13% above the open. While the breakout above $0.0000019 is bullish, momentum must be maintained to push SafeMoon above the Cloud to create clear bullish ...

More SafeMoon news

Top 3 Price Prediction: Investors prepare to sell on ETF news

Bitcoin price has historically sold off during the opening of any new derivative futures contract. Will this behavior continue? Ethereum price struggles to cross above the critical $4,000 level and may be held back pending any Bitcoin weakness.

More Bitcoin news

Cardano price to tread water soon, breaking below $2

Cardano price sees bears pushing price action further to the downside. ADA price has tested $2, but with lower highs, Cardano price is getting squeezed lower. The pivotal level at $1.89 could make or break the uptrend. Cardano price has been trying to recover ...

More Cardano news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP