Bullish Catalysts For Cardano That Will Drive ADA To The Moon, According To Analyst Lark Davis
As the long-awaited smart contracts of Cardano (ADA) are just around the corner, top analyst Lark Davis shares with traders bullish reasons to add ADA into their portfolio now.
According to the analyst, Input-Output Hong Kong (IOHK), a blockchain infrastructure research and engineering company behind the development of the proof-of-stake Cardano platform, announced t
Following the first two Alonzo updates, dubbed Blue and White, the final, Alonzo Purple update commences as the first fully public Cardano testnet to support smart contracts.
“This means that developers can start well and truly toying with Cardano. It also means that smart contracts on mainnet are not far away! Still looking like late August or early September for mainnet. This means that the age of Cardano is well and truly upon us,” the trader highlights.
Another reason for the bullish view of Cardano is that Cardano will soon release native Defi apps, and other apps, such as Sushiswap that can then integrate with Cardano to capture liquidity.
Lark Davis also points out that there are a lot of users already on Cardano network: “The last statistic I saw was 650,000 addresses staking Cardano. That is A LOT of users to bootstrap the network with! BTW 72% of supply is staked,”
Besides that, the crypto KOL suggests that Cardano already has a niche but growing and thriving NFT market since it enabled the creation of simple tokens earlier this year. NFTs will be able to really take off on Cardano once smart contracts come on board as well since it will allow for decentralized markets.
Moreover, although Cardano statistics of transaction remains low of 35,000, in comparison with Bitcoin 240k, Polygon 4.6 million, Ethereum 1.2 million, this is the reality of no smart contracts today and the crypto KOL believes it soon changes and rises in these numbers.
“However Polygon was also doing a similar amount of transactions a day in January! Things sure do move fast. Cardano’s growth of transactions could follow a similar trajectory when native apps go live and if apps like Sushi actually tap into Cardano as they have other chains.”
Yet, the analyst says that Cardano will not pull a 50X like MATIC did because a mere 6X would give it the same market cap as Ethereum. But if Cardano gets it right, then traders could still see it rally a couple of hundred percent after smart contracts launch.