Did Alonzo And Smart Contracts Kill ADA?

At the peak of the 2020 to 2021 bull run, ADA, the native token of Cardano, rose to $3 in August. Interestingly, developers activated smart

The activation of smart contracts on Cardano was a highly anticipated event, and it did have a significant impact on the price of ADA. In the lead-up to the Alonzo hard fork, ADA experienced a surge in buying pressure, which drove its price to a peak of $3 in August 2021. This was the highest price that ADA had reached at that point in its history.

However, after smart contracts were activated, ADA began to experience a decline in price. This downtrend continued throughout 2022, and by the end of the year, ADA was trading at around $0.30. This represented a decline of over 90% from its peak price in August 2021.

There are a number of factors that could have contributed to the decline in ADA's price following the activation of smart contracts. One possibility is that some traders may have sold their ADA holdings quickly after smart contracts were activated, in order to take profits on their earlier trades. Another possibility is that the broader cryptocurrency market experienced a downturn in 2022, which may have also put downward pressure on ADA's price.

Despite the decline in ADA's price, the activation of smart contracts was still a major milestone for Cardano. Prior to Alonzo, developers were unable to deploy dApps on Cardano, which limited its ability to compete with other platforms like Ethereum. With the activation of smart contracts, Cardano became a more versatile and capable blockchain, opening up new possibilities for development and innovation.

As Cardano continues to evolve and new use cases are discovered for ADA, it is possible that its price could eventually recover from the losses it incurred in 2022. However, it is important to note that cryptocurrency prices are highly volatile and can change rapidly, so it is difficult to predict with certainty what will happen to ADA's price in the future.

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