While Ethereum and Bitcoin have hit many record levels in the previous two months, Cardano hasn’t. The launch of smart contracts didn’t appear to give it much of a boost, and its market value continues to fall.
Cardano is going through a slow period
ADA’s price peaked at approximately $3 on September 2nd, 2021, and its market worth nearly topped $100 billion. However, this was followed by a sharp decline on September 7th, when El Salvador’s Bitcoin legislation went into force, along with the rest of the crypto market.
Input Output, the developers behind Cardano, verified the implementation of the Alonzo update less than a week later. Using the Plutus framework, smart contract compatibility was added to the network. The price of ADA rose briefly to $2.71 in the aftermath, then fell down to $2.50 the next day.
Since then, the outlook for Cardano has been bleak. It has slowly plummeted to its lowest price point in 90 days after failing to pump with Bitcoin in October. Its market capitalization has dropped below $50 billion, and it has dropped out of the top five cryptocurrencies.
Cardano is up for grabs
Cardano and Ethereum were considered rivals by the crypto community earlier this year, despite CTO Romain Pellerin’s disapproval. Cardano, according to Pellerin, will be “on par with Ethereum” after smart contracts are removed, with a considerably smaller carbon footprint than Ethereum or Bitcoin.
As a result, Cardano creator Charles Hoskinson has advocated that Tesla should accept ADA as payment. Elon Musk declared in May that his firm would stop taking Bitcoin payments owing to the digital currency’s mining harming the environment. Cardano, being a proof-of-stake chain, does not need such high energy usage.
While Cardano awaited smart contracts, Solana, a competing blockchain, grew exponentially throughout the year. It is currently the fifth-largest digital currency market capitalization because its proof-of-history consensus methodology allows a huge volume of TPS and minimal energy use.