Cardano ADA Reaches New All-Time High $2.87. As Smart Contract Countdown Continues

Cardano ADA is off to an impressive performance this week after achieving a new all-time high of $2.87 on Monday morning. Its latest performance further extends its strong upward momentum that has prevailed since the bulls regained control of the market.

ADA’s current price action is impressive considering that it traded as low as $1.20 just a month ago. Its latest price pump accompanies an increase in its market cap which recently crossed over the $90 billion mark, highlighting yet another major milestone for the Cardano network. ADA is currently trading at $2.82 which is a little lower than its recent ATH but its performance is still up by 8.30% in the last 24 hours and 30.36% in the last 7 days.

Source: Binance

ADA’s trading volume has increased notably in the last two weeks, mainly due to strong buying pressure during the latest wave of bullishness. Interestingly, the price is currently extended above its moving averages but the RSI suggests that it is still not overbought, which means there might be some more potential upside.

Why is ADA continuing its rally?

ADA’s bull run is a combination of multiple factors including the bullish outlook in the market, the latest development milestones, and more importantly, the upcoming smart contract launch. Cardano is one of the most promising blockchains but it is also held back by the lack of smart contracts. However, that is slated to change in September and many investors view this as a huge catalyst that will allow it to onboard more decentralized projects.

The expectation of more growth has thus fueled heavy investment in ADA in the last three weeks, thus pushing up its price. ADA’s market cap was just above $40 billion less than a month ago and it recently crossed $90 billion. However, the market cap figure still lags far behind its closest rival Ethereum which currently has a market capitalization of $390 billion. In retrospect, Ethereum has had smart contracts since its went live, and as such it has attracted many projects so far.

Why ADA might unlock more potential gains within the next few months

Although Ethereum already has the upper hand thanks to its first-mover advantage and smart contract capabilities, it has recently received a lot of criticism for being too congested and also its high transaction costs. Those disadvantages make a strong case for ADA’s potential growth because Cardano offers a lot of room for many projects, as well as lower transaction costs. These factors alone might contribute to an explosion of value once the Cardano blockchain introduces smart contract support.

The upcoming changes might be enough to provide a significant boost to Cardano’s price action, and potentially allow ADA to withstand or weather another possible market crash. ADA’s future looks favorable either way especially considering the potential organic growth that it can achieve with the onboarding of more projects in the future. Cardano might reach Ethereum’s current market cap in the next few years but as far as ADA’s value is concerned, investors should keep in mind that the gains will be limited by its higher circulating supply.