Millions of dollars flow into Cardano ahead of Alonzo hard fork

Cardano price movements can be explained by the potential of an upcoming smart contract upgrade by mid-September.
Cardano-focused investment products recorded inflows of $1.3 million ahead of the Alonzo hard fork event.
Trader optimism is reflected in the prediction market where 80% of bets favor Cardano.

Cardano has rallied 14% in the past week due to increasing institutional investment ahead of the Alonzo upgrade. Though tech timelines are challenging to predict, the Cardano team has set a date for the launch of smart contract functionality on the mainnet as mid-September.

Cardano ranks third in market capitalization, replacing Tether

Cardano replaced the stablecoin USD Tether to become the third-largest cryptocurrency by market capitalization. At the time of writing, ADA price is $2.01, and the market cap has crossed $64 billion.

Cardano's upcoming smart contract launch has attracted an increased inflow of capital from institutions. Cardano investment products observed a rise of $1.3 million in inflows when the top two cryptocurrencies, Bitcoin and Ethereum, noted outflows of nearly $22 million.

Input Output Hong Kong (IOHK), the decentralized blockchain company behind Cardano, recently announced that the team is on track to meet the projected hard fork dates for its testnet and mainnet. IOHK shared the update on Twitter

#Cardano #smartcontracts are coming...

We're on track to meet the projected HF dates for both testnet & mainnet #Alonzo upgrade, as Nigel outlined in last week update

A new era is set to begin on Sunday 12th September 2021 $ADA pic.twitter.com/HrdrqYizhP
— Input Output (@InputOutputHK) August 17, 2021

In their latest tech update, ADA developers pointed out that the Alonzo Purple testnet is live, and pioneers, exchanges and decentralized application developers have started testing the smart contract functionality.

Interestingly, Cardano's Alonzo hard fork and smart rollout of smart contracts on the mainnet take it a step further than Ethereum. IOHK labels Cardano as the "Green Blockchain." While rival Ethereum is months away from a shift in consensus mechanism and mining, Cardano and other proof-of-stake protocols are claiming that they have arrived at the solution.

Investors are taking note of Cardano’s readiness for replacing energy intensive cryptocurrencies and buying ahead of the next big upgrade on the altcoin’s blockchain. The open bet on Polymarket against the launch of smart contracts before October 1, 2021, is now in favor of Cardano. Odds are 80-20 versus 63-37 four weeks ago.

Experts have attributed Cardano's meteoric rise to the mid-September launch. Michaël van de Poppe, the CEO and co-founder of Eight Global, analyzed the probability of ADA hitting $5:

#Cardano ready for $5 after a big breakout?

Seems likely.

Check it here:https://t.co/gMpCszUXVu

Don't forget to subscribe and like the video!
— Michaël van de Poppe (@CryptoMichNL) August 11, 2021

FXStreet analysts state that ADA has what it takes to hit another all-time high. Cardano is well-positioned for hitting new highs, and the ADA rally is set to continue as the price holds above $1.90.

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