ADA Drops 50% In One Week, Perfect Buying Opportunity?

Reynaldo Marquez

4 years ago

2 mins read

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Cardano (ADA) has had an impressive run since 2020. Its native token has soared beyond two major price marks at $1 and $2. Due to Bitcoin’s price recent retracement, investors could have another shot at buying ADA before a major milestone is deployed.

ADA trades at $1,48 with small losses in the daily chart and a 22% correction during the past week. In the monthly chart, Cardano’s native token still records a 22.1% profit.

Cardano ADA ADAUSDT — ADA on a downtrend in the daily chart. Source: ADAUSDT Tradingview

As part of its Goguen era, Cardano has deployed several updates with 2 Hard Fork Combinator events, “Mary” and “Allegra”. Now, Input-Output Global (IOG) has been conducting a stress test for the components of HFC “Alonzo” and the smart contract platform to be implemented with this event, Plutus.

According to IOG’s latest update, the Plutus team has been working on improving specific elements of the platform to allow “constant space contract instances”. Thus, Plutus’ smart contract will have reduced “redundant events” captured and stored on the platform.

The Marlowe team, a programming language that will simplify the process of using smart contracts on Cardano, has been focused on the integration with Plutus application backend (PAB). Simultaneously, they have worked on the website design and developer’s documentation.

Cardano’s Alonzo On Track For Deployment

One of the main reasons Cardano could have experienced such a rally is due to the expectations of Plutus and its smart contract capabilities. DeFi had a boom during 2020’s summer and more competitors, such as Binance Smart Chain and Polkadot, have emerged and received a positive response from users.

Cardano could be a more decentralized, secure, and cost-efficient transaction. Cardano’s inventor and IOG’s CEO Charles Hoskinson recently gave an interview for the crypto news website Cryptobriefing. Hoskinson confirmed that IOG will launch a Pioneer Testnet “soon”.

This phase will extend for two months. Plutus will undergo a “feature freeze” at the end of June and will be a final step before its implementation. According to IOG’s CEO, developers are already working on the dApps:

It will be about four to six weeks to actually do the hard fork and turn on smart contracts for the mainnet. We have also started the Plutus Pioneer Program where we are training over 1,000 developers who expressed interest in writing decentralized applications (dApps) on Cardano.

Hoskinson added that Cardano’s new ecosystem will have dApps with various use cases such as NFT marketplaces, decentralized exchanges, lending and borrow platforms, oracles, stablecoins, and others. The platform will facilitate tools to migrate projects from Ethereum to Cardano (ADA). On this subject, Hoskinson said:

We are finalizing arrangements with two dozen different dApps or platforms to come on over. That will happen over the next 180 days. It is a little hard to begin that conversation (…). Usually, the conversation is not explicit migration from Ethereum to Cardano. Instead, what we have seen industry-wide is that projects want to become multi-chain.

With Bitcoin’s dominance on a downtrend, after dropping below 40%, and altcoins with negative performance, investors could take advantage of the moment to “buy the dip”. The crash has come before the full implementation of Plutus with “Alonzo” drives new users into the platform.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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