Cardano (ADA) is in its formative period to pave a solid road to another ATH, says analyst Ben Armstrong
While many traders expected the rollout of smart contracts to be a catalyst to immediately take Cardano to a new higher all-time high, analyst Ben Armstrong says that it may take a while for another milestone to be reached as Cardano is in its formative time.
Rather than having a whitepaper, Cardano is the first blockchain platform to evolve out of a scientific philosophy and research first approach. According to the trader, this peer review system implements design principles to overcome issues such as scalability, interoperability and regulatory compliance.
“This progress did not happen overnight,”
Learning from the mistakes of its competitors, ADA started off using proof-of-stake consensus rather than the energy-intensive proof-of-work. In particular, Charles Hoskinson claims Cardano uses just 6 gigawatt-hours of energy annually, not even 0.01% of the 115.85 terawatt-hours Bitcoin is estimated to use.
According to the trader, on January 1, 2021, Cardano was valued at only about 0.18. $1,000 investment on that day would be worth $13,450 today.
Since the end of March 2021, a decentralized network from a community of 2,868 staking pools has produced every Cardano block. According to statistics from the Cardano data aggregation tool pooltool.io, there are currently 831,000 wallets currently staking ADA. That’s a 35% increase since June. Over 71% of the entire ADA supply is currently being staked valued at about $60 billion.
Not only that, Armstrong also points out Cardano’s solid evolution through its upgrades through Byron, Shelley and Goguen:
“All these previous updates laid the groundwork for the Alonzo hardfork. This most recent update was also named after a mathematician and American pioneer Alonzo Church. Over the past few months, Alonzo rolled out in several phases, Blue, White, Purple, Red, Black staging, and finally the mainnet just rolled out on September 12. This marks the completion of the Alonzo hardfork and signifies the end of the Goguen era.”
This development has enabled smart contracts to be written for Cardano using Plutus scripts in which developers can use to create NFTs.
In terms of ADA growth, Armstrong highlights that if you truly believe in Cardano and its ever-growing ecosystem, it’s important that we remain patient and not let the FUD get into our heads.
“I know that countless traders believed that the price of ADA was going to spike upwards on September 12 after the rollout of the Alonzo mainnet. You probably already know this did not happen. In fact, we’ve seen a pullback since then. But it’s okay. Charts go up and down every day. This has helped the market activity. Focus less on the daily and hourly charts and more on the big picture. This is only the beginning for Cardano.”