In the last two months, the Cardano (CCC:ADA-USD) cryptocurrency has been declining.
Even though CoinMarketCAp now ranked ADA in sixth place with a market value of $68.9 billion as of November 3, it had previously been higher. It was trading at $2.07 per token as of yesterday. This is a long way from where it was a month and two months ago.
It was roughly $2.89 two months ago for good measure. That is to say, Cardano’s price has been steadily declining. In September, the cryptocurrency underwent a hard fork, much like the previous month. The IOHK, or Input Output Hong Kong, a cryptocurrency advocacy business, created the hard fork. As of September 12, smart contracts were able to start launching.
This puts it in direct competition with Ethereum platform creators who corresponded to smart contracts. Nonetheless, they started implementing smart contracts in 2015 and haven’t looked back since. A growing number of developers for smart contracts, decentralized apps (dApps), and Non-Fungible Tokens (NFTs) is using Ethereum.
Cardano, in other words, is still in a prolific period. Developers are only now starting to use the platform to create new dApps, decentralized domains, and other applications. However, Charles Hoskinson, the founder of Cardano and the CEO of IOHK, predicts a significant drop in business on the platform. In reality, IOHK is already experimenting with the evolution of the so-called “Layer 2.0” or another iterative Cardano platform in order to plan for this.
In September, Cardano announced that it had formed a collaboration arrangement with Dish Network. According to Cardano’s creator, Cardano will assist Dish Network in providing 8 million digital IDs to its customers. By allowing the accomodation of identities on the Cardano blockchain platform as they become more private and stable. This is due to the fact that identities become rigid.
Indeed, a useful demonstration of how blockchain platforms will alter real-world software processes. In the long run, it also tends to make ADA more valuable. Dish Network will also create a blockchain-based loyalty program for its customers, similar to airline rewards schemes.
In other developments, IOHK announced a collaboration with Chainlink Labs, a non-profit promotional organization. The deal will compel Chainlink developers to create smart contracts for Cardano DeFi operations. They will also be rewarded for providing real-time market data to inventors building on the Cardano network. This will increase interest in the Cardano network’s smart contract development.
Chainlink is an oracle platform, which means it provides solid electronic data from the specific smart contracts conformed outside. This oracle data is a requirement for smart contracts to carry out their functions. This is compatible with decentralized finance (DeFi) applications and creates a transaction that is well suited to Cardano’s smart contract purpose.
ADA is slowly making its mileage in the real world. This includes generating a bunch of necessities for Cardano crypto through DeFi apps, smart contracts and its forenamed collaborations. Consequently, expect ADA to slowly gain over the coming time as traders and the market acquire Cardano’s total value locked (TVL) is rising.
That is to say, if demand increases but supply remains limited, the price of ADA will have to rise. For the time being, there is no way to predict how dominant it will become. A lot will hinge on how quickly Cardano’s demand grows. Nonetheless, it is reasonable to expect that IOHK’s results will result in Cardano platform manufacturing in the future. As a result, anticipate it to be mostly progressive in price.