- Ada rose more than 20% in daily trading on Wednesday to nearly $1.80, its highest level in two months.
- Its founder Charles Hoskinson said a purple smart contract update for the network is coming Friday.
- Other altcoins are up, with XRP up more than 9.1%, Dogecoin up 6.1% and the point up 5.3%.
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Cardano’s native ada token was up as much as 20% early Wednesday after its creator Charles Hoskinson raised hopes that a long-awaited update was imminent.
Hoskinson, CEO of Input Output HK for Cardano developer, said Tuesday that he will reveal the final release date for the alonzo update on Friday.
“We will be able to announce when the Alonzo hard fork will happen, at which point you will be able to run smart contracts on Cardano,” he said in a YouTube video.
Ada briefly rose to a two-month high of $1.7948 in early trading, posting a 22% increase in 24 hours, before easing back to around $1.7831, posting a 12.9% rise, according to Investing.com. But the coin is still down 22.7% from an all-time high of $2,394 in mid-May.
Alonzo’s upgrade of the Cardano network will include more advanced smart contracts and decentralized finance, or DeFi applications to the blockchain. The release of the Alonzo Purple hard fork is the final step in a multi-stage process, and Cardano could help match the larger Ethereum network with smart contract integration.
Smart contracts are effective contracts that automatically perform a function once a series of conditions are met. It allows engineers to use the blockchain to perform a variety of functions such as sending information or documents. DeFi applications allow two parties to exchange capital or assets without an intermediary.
Read more: Ether to $14,000, Doge Above $1: Payment Platform CEO Explains Why Ethereum Upgrade Could Raise Several Cryptocurrencies and Shares His Predictions for Bitcoin and XRP
On Friday, blockchain engineering and research developer IOHK said that it has started including users on alonzo purple and has done so Test started update.
“With the revelation on Friday that the launch of the mainnet is on track, crypto investors and enthusiasts in general were elated with optimism that a supposed blockchain infrastructure with the potential to support the next generation of smart contracts is on the horizon,” said Konstantin Anisimov, CEO. at CEX.IO for the London-based cryptocurrency exchange, told Insider.
“This usually affects Ada’s stability and contributes to the continued increase in its prices,” he said.
Ada is the fifth largest cryptocurrency by market capitalization, with a value of about $57 billion, according to Coinmarketcap.
Other altcoins rallied on Wednesday, with XRP up more than 9.1%, Dogecoin up 6.1% and point up 5.3%. Meanwhile, the leading bitcoin is up 1.3% and ether by 2.7% in the past 24 hours, according to Coingecko.
“The growth of other altcoins including Ethereum, XRP, Dogecoin, Polkadot, and others must have been launched as a generic relationship with Bitcoin, which has continued to maintain steady growth towards the $50,000 price mark,” said Anisimov. .
“However, the listed altcoins have their inherent utility, investor sentiment and a robust ecosystem, all of which are essential in fueling the continued price growth we are seeing today.”