- Cardano experiences a notable price surge of 23.9% with an encouraging shift in DeFi usage and network activity.
- Several factors including potential blockchain integration, increased DApps activity, and decreased regulatory risk, besides an innovative NFT ticketing solution, back Cardano’s positive momentum.
A significant price surge of 23.9% on July 13 placed Cardano (ADA) in the crypto limelight, sparking investor interest in the potential for further appreciation. This rally, set against a backdrop of a favorable judicial decision involving XRP, has led many to speculate whether ADA has the impetus to breach the $0.40 barrier.
🎊 We are happy to announce @nmkr_io & @NucastIO as our technical collaborators for the community-led event's ticketing solution!!
Many thanks for your contributions! 👏
🎟️ Registration opening SOON! 👀https://t.co/jco6lqmWrw#CardanoSummit2023 pic.twitter.com/xsRtA7FyM2
— Cardano Foundation (@Cardano_CF) July 17, 2023
Regulatory Shifts and Their Impacts
The United States Securities and Exchange Commission (SEC) made waves when it referred to ADA as a potential security in recent court actions against Coinbase and Binance exchanges. Though staking offerings might be construed as securities, this does not pose a direct risk to Cardano or its development enterprises.
A 36% correction occurred following the SEC’s comments in June, causing ADA to plunge to $0.24. However, a ruling favoring XRP on July 13 alleviated regulatory fears, contributing to the rally of ADA and other coins previously undermined by regulator’s remarks.
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Prospects of Sidechain Implementations
In a compelling development, Charles Hoskinson, founder of Cardano, proposed integrating Algorand as a Cardano sidechain after viewing a video shared by John Woods, the Algorand Foundation’s CTO.
Though Algorand’s community might initially resist, the proposal gains traction in light of AlgoFi’s shutdown announcement on July 11, following SEC’s security-related allegations against Algorand due to its initial coin offering (ICO). The integration could potentially help Algorand evade regulatory scrutiny while amplifying Cardano’s adoption.
DApps Activity and NFT Markets Surge
Cardano’s total value locked (TVL) in ADA terms increased by 10% month-on-month, hitting 550 million ADA on July 14, as reported by DefiLlama. Alongside this, decentralized exchange volumes witnessed a 6% upswing over the past week.
Moreover, Cardano’s nonfungible token sales surged by 56% to $3.1 million, outpacing leading platforms like Solana and Ethereum.
ADA’s Prospects Amid Regulatory Complexities
While the recent ADA rally is promising, investors should still consider the inherent risks. The favorable XRP decision did not explicitly clear Cardano’s ICO; it mainly focused on sales via exchanges and over-the-counter desks. The ongoing XRP trial will further clarify Cardano’s regulatory position.
Furthermore, ADA’s TVL lags behind other layer-1 smart contract alternatives. To surpass the $0.40 mark, Cardano needs to maintain its growth trajectory, delivering on promises, including the Hydra L2 solution and the Basho proposal for performance improvement.
In a recent announcement, Cardano named NMKR and Nucast as their technical collaborators for an NFT ticketing solution for a community-led event, signifying Cardano’s continued innovation in the blockchain landscape.
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