Cardano halts after smart contract launch but ADA flashes bullish signs

Cardano ADA smart contracts Hoskinson
image from medium.com

Key Takeaways:

  • Cardano sparked the highest interest in developers among 50 other blockchains, according to a study.
  • ADA technicals look bullish despite the recent setback.
  • Cardano’s difficulties with smart contract functionality.

YEREVAN (CoinChapter.com) – Cardano open-source blockchain experienced a 170 percent surge ahead of the smart contract capability (Alonzo) rollout on Sep.12. The digital asset’s extended functionality launch didn’t go smoothly. As a result, the ADA price has consolidated ever since. However, according to a new study of developers’ activity and technical analysis results, the future doesn’t look bleak for Cardano.

Cardano developers got active

Outlier Ventures, a capital management firm, gathered data on repository hosting service GitHub. The research included 50 blockchains across the market. The results state that Cardano scored the highest number of commits. In hindsight, the latter is a barometer of community activity around a certain project on GitHub.

The study asserted that Cardano shows the highest results in CPM (commits per month).

Cardano ranks the highest in terms of average commits per month (CPM) with a total of 702 CPM, growing by 24.0% compared to the previous 12-month period.

claimed the report.
Outlier Ventures report
Outlier Ventures report

The average CPM across all protocols included in the report stood at 107. However, according to the data, the activity on the Cardano platform (702 CPM) surpassed the average by 556%. Generally, developers’ activity on any platform signifies heightened interest and boosts the probability of a blockchain doing well in the long run.

It is also worth mentioning that the technical setup on the ADA daily chart also favored a bullish outcome in the sessions ahead.

Also read: Cardano (ADA) drops 6% after smart contract deployment; what’s next?

ADA daily chart

ADA/USD exchange rate stood at 2.40 in the European session Wednesday, after falling 14 percent since Sep. 12. The support line at $2.36 proved instrumental in preventing a further decline. However, ADA formed a falling wedge pattern that could take the digital asset to new highs.

In detail, the falling wedge consists of two converging trendlines that envelop the price action. The upper trendline halted the bullish attempts, and the lower one kept ADA from dropping. Overall, the pattern drove Cardano down to the current value. However, the falling wedge is bullish and promises gains after ADA exhausts the formation.

Cardano (ADA) in a falling wedge formation. Source: ADAUSD on TradingView.com
Cardano (ADA) in a falling wedge formation. Source: ADAUSD on TradingView.com

The same happened with the last falling wedge, which lasted for almost three months. ADA broke out of the last falling wedge right before the 170 percent uptrend.

Also read: Cardano (ADA) ready to run for $5, popular analyst says

While developers’ interest and bullish technicals support an optimistic outlook, functional smart contracts remain the focal point of Cardano’s future development.

Smart contracts on Cardano

As mentioned above, the smart contract deployment on the platform did not go smoothly. One of the first DeFi projects to run on the upgraded blockchain was Minswap, a multitool exchange. However, it shut down shortly after launch, citing difficulties at running multiple transactions simultaneously.

It didn’t take long before Cardano faced some criticism and disappointment. However, the CEO Charles Hoskinson replied to some of the tweets, saying that “it’s the greatest gift we could get,” citing the high expectations from the network.

He also referred to rival layer-one platform Solana (down 16% after intermittent instability), calling the blockchain “underestimated and ignored.”

Sources report that Cardano successfully managed a hundred smart contracts 24 hours after the failed attempt with Minswap. Moreover, the CEO was optimistic about the future development of the network.

“This time next year, there will be useful, and in some cases, life-changing, decentralised applications running on the system which will transform the lives of millions to billions of people throughout the next decade.” 

said the executive.

Time will tell if his prediction pans out.

Also read: Cardano chief Hoskinson says, “We as an industry, won,” expects other countries to follow El Salvador’s lead.

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