Ethereum is the leading blockchain for creating smart contracts, actively used in DeFi and NFTs. Butpopularity led to network congestion,high commissions and difficulties in carrying out updates. Cardano goes the other way, first rolling all the technologies on a testnet. On August 13, the developers announced the Alonzo hard fork planned for September 12, which will bring the era of smart contracts to Cardano. After this news, the coin soared by 23%, and the capitalization reached $ 69.6 billion.
Image Source: Cryptocurrency ExchangeStormGain
Cardano runs faster and more economicallyalgorithm, while Ethereum continues to move the timing of the move to proof-of-stake over and over again. Cardano uses its own programming languages, and the network is divided into two levels - one for transactions, the second for smart contracts and dApps. All of this should provide better security and usability at high baud rates.
Smart contracts are used in the mostfast-growing crypto industries are the decentralized finance (DeFi) market and non-fungible tokens (NFT). NFTs are analogous to a digital certificate, for example, they can indicate the copyright for a digital artwork. Already now, with their help, paintings, sports player cards, various 3D models are sold. The market is forecast to grow from $ 1 billion to $ 15 billion this year.
In DeFi, smart contracts enable you to automatea financial relationship between a lender and a borrower without the use of a third party. Over the past year, this area has grown 14 times and is now estimated at $ 84 billion.
Image Source:defipulse.com
The approach of Cardano to smart contracts was positively received by institutional investors: open interest returned to growth.
Image Source:bybt.com
Traders are also active:after a two month respite, leveraged ADA purchases are on the rise. This is evidenced by the growing funding rate on perpetual futures contracts.
Image Source:bybt.com
The Cardano network is far from completedeployments, however, each update is received with enthusiasm by the community, and in the past 12 months the price of the coin has increased by 1500%. The successful deployment of Alonzo will reinforce this trend.
Analytical group StormGain
