Perhaps the presence of a smart contract function at Cardano is not yet strong enough to sustain ADA prices.
If one looks at the performance of the ADA since September, these assets show a bearish pattern in contrast to the expectations of investors who expect bullish.
What happen?
Dated Sept. 2, the ADA recorded an all -time high (ATH) of $ 3.10 before slipping to $ 2 on Sept. 7. Coincidentally on that day, the Bitcoin Law began to be fully implemented in El Salvador.
A week later Cardano developer Input Output confirmed the launch of the Alonzo hard fork that brings smart contract functionality to the network using Plutus.
The news pushed the ADA price increase to $ 2.71, but dropped back below $ 2.50 the next day.
The ADA continued to post bearish even as Bitcoin surged throughout October, indicating the dominance of the crypto king failed to drive the positive movement of the ADA.
At the time of writing, the ADA is trading at $ 1.6, down over 1% in 24 hours. It ranks 6th after Solana (SOL), surpassing Ripple’s (XRP).
The fierce Ethereum-Cardano-Solana competition
Chief technology officer Romain Pellerin once claimed Cardano would be on par with Ethereum once the smart contract function was launched, based on Cardano’s much lower carbon emissions than Ethereum or Bitcoin.
That’s why Cardano founder Charles Hoskinson urged Tesla to accept the ADA as a payment medium as opposed to Bitcoin and Dogecoin (DOGE).
For the record, Tesla founder - Elon Musk once canceled payments using Bitcoin due to environmental issues stemming from his mining. Unlike Cardano, the production of these assets does not require high energy.
But Hoskinson's persuasion was ignored.
Then came Solana who witnessed parabolic surges throughout the year. The application of proof-of-history (PoH) consensus managed to attract the attention of most investors due to the high transaction volume per second (TPS) along with low energy consumption.
Looking at the all -out situation for Cardano, to what extent can this network prove its superiority as a network capable of rivaling Solana, on par with Binance Smart Chain (BSC) and Ethereum?
