- Cardano price is at an all-time high tanks to a confluence of circumstances.
- The upcoming Alonzo rollout promises to shift Cardano into DeFi with smart contracts functionality.
- Growing investments facilitate the ADA rally.
- Altcoin season played a significant role in the uptrend.
YEREVAN (CoinChapter.com) – ADA, the native token of the Cardano public blockchain platform, rallied 35 percent in 3 days. The explosive uptrend culminated in a new all-time high of $2.54 in the early hours of the Asian-Pacific session Friday. The ADA/USD exchange rate stood at $2.48 at the London session opening bell.
The main reasons behind the sharp uptrend are the upcoming smart contracts on the platform and the altcoin season prompted by Bitcoin’s consolidation.
Cardano smart contracts
The rally was no surprise to Cardano supporters, as the bullish expectations grew ahead of the Alonzo rollout. In hindsight, Alonzo is one of the stages in Cardano’s Goguen era. Once Alonzo launches on the mainnet, the platform will be fully ready to take on smart contract functionality and build an ecosystem atop the blockchain.
Cardano plans to complete the Goguen era on September 12, as they announced three days ago. The upgrade could strengthen the platform’s competition to Ethereum and help it transition into the $100 billion DeFi (decentralized finance) industry.
The digital asset now ranks #3 by market cap ($81.4 billion). Moreover, Cardano enjoyed increased attention from investors. While Bitcoin (BTC) and Ethereum (ETH)-based funds faced outflows, Cardano recorded $1.3 million in inflows this week alone.
The shift in attention only confirms that the altcoin (coins other than Bitcoin) season is high on the crypto market.
Bitcoin, as the alpha cryptocurrency, with almost half of the total market cap, often leads the trends and altcoin price actions. However, once the flagship crypto started its rally on July 21, many smaller coins followed suit. As a result, altcoins like ADA, XRP (Ripple), DOGE (Dogecoin), SOL (Solana), and others gained in value and market cap.
However, when Bitcoin starts to consolidate after a bullish phase, many traders shift their attention to the alt market. BTC didn’t offer handsome rewards anymore, so investors wished to secure their profits elsewhere.
They chose not to leave the crypto market and turned to other digital assets. As a result, many altcoins enjoyed higher gains than BTC and saw an inflow of funds.
The altcoin season spurred Cardano’s rally ahead of the Alonzo rollout. ADA retested the $1.85 resistance line as support on Wednesday and took off on a 35 percent uptrend. After the digital asset revisited its previous all-time high of $2.46, it registered a new record at the $2.54 value.
While the crypto-community anticipates the upcoming Alonzo rollout, the ADA price continued to rally. The token gained 17 percent in the past 24 hours, and the uptrend continues in the London Friday session. The upcoming days will show if Cardano’s ADA will face downward correction or rally on.