During this summer, the Cardano community desperately waited for any update regarding the development of Alonzo. Alonzo is the code name of perhaps one of the most important upgrades in Cardano’s history. Why is Alonzo so important, and what to expect from ADA and its possible price development in the near future.
Ladies and gentlemen, we do have a release date
Cardano experienced a couple of delays in the past, and so did Alonzo. While the Alonzo upgrade was meant to take place in April, it was delayed by a few months. Therefore, all further announcements regarding release schedules were taken with a grain of salt.
But this time, things are very different. The developers have tested Alonzo throughout different stages, and the public testnet “Alonzo purple” has been released at the beginning of August. This gives reason to believe the main net release of Alonzo might actually happen on the newly announced date.
Smart contracts are desperately needed to advance not only the functionality of the Cardano blockchain, but also the ecosystem that has been promised by no less than Charles Hoskinson himself. The founder of IOHK and Cardano is looking forward to building a mature ecosystem of decentralized applications on top of Cardano's blockchain.
Why is this so important?
With the release of Alonzo purple, the native token to the Cardano Blockchain, ADA, has seen good growth in terms of price. But it is not only speculators who drove the price over 1,80 Euro. It is expected that a lot of products will be built as soon as Alonzo is available. Not only is the release of DApps (decentralized applications) a possible catalyst for the price development, but also the rising demand of ADA once these DApps are in use.
At the time of writing, other tokens like Solana (SOL) have experienced an all-time high, while Bitcoin is still below 50.000 US-Dollars. This happened because a particular collection of NFTs was released on top of Solana. With more and more people creating demand for SOL in order to participate in minting these NFTs, the price surged even higher.
It is not unlikely that ADA will experience the same effect. As soon as DApps are built on top of Cardano, they can open a flood gate of fresh money entering the market. There is also the risk that the market is in a “buy the rumour, sell the news” situation. Meaning that the DApps and a possible hype is already priced in.