The cryptocurrency market has been a rollercoaster ride, with ADA, the native token of Cardano, experiencing significant highs and lows. From reaching $3 during the 2020 to 2021 bull run to plummeting to $0.32 at the time of writing, ADA holders have been on a wild journey. The activation of smart contracts via the Alonzo hard fork marked a crucial milestone for Cardano, but the aftermath has left many questioning the coin’s future valuation.
Despite the excitement surrounding smart contract capabilities on Cardano, the price of ADA has been on a steady decline. Dropping over 90% since its peak, many investors who bought in during the bull run are facing losses. The implementation of smart contracts, while a significant advancement, seems to have negatively impacted ADA’s value, especially in the midst of the crypto winter of 2022.
The activation of smart contracts on Cardano through the Alonzo hard fork opened up new possibilities for developers in the Goguen era. Previously unable to deploy dApps and compete with Ethereum, Cardano saw a surge in DeFi protocols and an increase in total value locked after Alonzo. However, the disconnect between ADA’s valuation and investor expectations post-Goguen raises concerns about the coin’s future performance.
The Road to Voltaire
As Cardano progresses towards the final phase of its development, Voltaire aims to decentralize governance and enhance ADA’s utility. With features like voting on proposals and a treasury for project funding, Cardano seeks to empower holders and improve the network. However, the current selling pressure on ADA and the threat of dropping to new lows signal potential challenges ahead.
The journey of ADA post-Goguen has been a mix of achievements and setbacks. While the activation of smart contracts brought new opportunities, the decline in ADA’s valuation and the looming challenges of Cardano’s development stages raise questions about the coin’s future. As investors wait to see if ADA can recover and reach new highs, the critical analysis of the state of ADA post-Goguen highlights the complexities and uncertainties of the cryptocurrency market.
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