Cardano successfully marked the launch of smart contracts by implementing the Alonzo hard fork. The major upgrade increases the competitiveness of Cardano over its rival Ethereum. Touted by Input Output HK as the “epochal moment in the birth of a new ecosystem,” the launch of smart contracts is not without its falls.
Managing Cardano Expectations
Let’s take a minute to breathe here. There likely are going to be problems with dApps (decentralized applications). Be patient with the process of building out a whole new ecosystem on the Cardano network; setting the correct expectations with how the process works will allow us ADA holders to make better decisions with our holdings.
I originally went to school to be a Computer Scientist, and I worked as a freelancer building applications for four years. Knowing what it takes to make a fully functional application sheds light on the process. It takes time to iron out wrinkles in the software. Because Alonzo just released, we shouldn’t expect a complete ecosystem of dApps to play with right off the bat.
Expectations with price
If you are wondering how to invest into cryptocurrency, here is a little bit about ADA. Cardano was able to release the much-anticipated smart contracts on September 12. On the day of the release, the prices of the native ADA were highly volatile. After the launch, ADA took a hit and was seen trading at around $2.38 - a significant 8% decrease. There was a slight dip after the release of smart contracts.
Volatility is to be expected and short-lived. ADA will soon bounce back, and the price will stabilize. Cardano’s only recently became the third-largest in terms of its market value, estimated at $75 billion in size. This is a huge win for the Cardano community. Hopefully this sheds some light on Cardano if you're interested in investing into this crypto.
Remember that buy the rumor, sell the news affects the price of any cryptocurrency. ADA was no exception, so we are likely to see the price drop back down a bit until we see another bull run. Be sure to do your due diligence before investing into cryptocurrency.
I have an article about how to spot crypto behavior here if you want to read more.
Since September 2, ADA has seen a dip falling to 23% after an all-time high of around $3.098. It is because investors have taken out some profit prior to the release of the anticipated upgrade. This frequently happens in the crypto world and is part of its nature to fluctuate rapidly.
Smart contract expectations
Implementing the hard fork has ushered in a new era. Be aware that due to it being so early on, several decentralized applications have delayed their launch. On September 12, Cardano went live with only a few smart contracts that Cardano’s creator developed. Remember, this is all expected because building an application takes time.
Smart contracts are a self-executing piece of computer coding that lays the groundwork for the use of decentralized applications. Ethereum deployed smart contracts in 2015, and now Cardano is ready to shake the industry like other smart contract-enabled blockchains.
It was usual to see the price of ADA explode to an all-time high because of the anticipation of the news of the launch of smart contracts created. The price hit an all-time high of $3.09 when Cardano launched Alonzo’s testnet on September 2. But the difficulties in concurrent transactions and the criticism led to the price decline of ADA reaching $2.60.
Let’s have some real talk here. The anticipation of smart contracts may have created some unrealistic expectations. As with every launch of any product, there are problems that will come up. It is essential to know that Cardano and the network behind the dApps is running exceptionally smoothly due to its extensive research-driven process.
The Cardano dApp had to shut down operation shortly after launch because of the difficulty it was facing to process multiple transactions in a matter of minutes. Remember, we need to be patient and realize it takes time for our beloved ADA to achieve its potential.
However, a blog post by Input Output reminds people that “early user experiences might not be perfect [and] some early dApps will have issues. On the other hand, it also hinted at a bright future down the road as Cardano is busy making sophisticated alterations that would be released in the coming months.
One thing to note is that Ethereum had these same problems in the beginning. Ethereum experienced more issues on the launch of its smart contracts. After Ethereum’s smart contract, the benefit of releasing has allowed Cardano’s creator to learn lessons from those who came before.
I think it would benefit us all if both Cardano and Ethereum succeeded. I am totally against the whole Ethereum Killer movement because if Cardano and Ethereum coexist, they will compete. To be transparent I am invested into Ethereum and Cardano for the same reason someone may hold Apple and Microsoft. The fact of the matter is that competing businesses create a higher quality product for their end users. This is something that no ETH or ADA holder can dispute. In the end, who doesn’t want their preferred crypto to be challenged to be better?