Cryptocurrency Cardano ADA returned to the spotlight on Sunday, sparking a moderate market rally following news that the developer network is close to launching smart contracts.
The total value of all cryptocurrencies rose 4.4% on Sunday to $ 1.6 trillion, according to Coingecko. Among the major companies, growth was 17% – ADA Cardano. According to TradingView, the ADA peaked at $ 1.70 and was last seen soaring north to $ 1.63.
At current values, Cardano was the fourth largest cryptocurrency with a total market value of $ 52.9 billion.
ADA reported strong recovery on Sunday after suffering for much of the past week. Source: TradingView.
Each of the top 20 cryptocurrencies brought in winnings on Sunday. Bitcoin (BTC) is up 3.5% to $ 35,833, Ether (ETH) is up 4.3% to $ 2,431, and Binance Coin (BNB) is up 6% to $ 327.
Despite a modest rally, market sentiment is still tipping lower this weekend and investors continue to speculate on whether Bitcoin has bottomed out. The Crypto Fear & Greed Index fell to 10 on a scale of 1-100, with low scores associated with “extreme fear.”
What drives the ADA?
The presence of oversold conditions after the last market correction appears to have worked in favor of the ADA on Sunday. Every Saturday, the cryptocurrency briefly broke through the RSI oversold indicator and then bounced back abruptly over the next 24 hours.
Prior to the crypto crash on May 19, ADA was one of the best digital assets out there. It peaked at $ 2.46 on May 16 and fell 55% the following week. If we look beyond the immediate change in market sentiment, the underlying ADA remains the same.
Centrally, ADA supporters celebrate the launch of Alonzo smart contract testing by the Hong Kong development team, Cardano Input Output (IOHK). As Cointelegraph recently reported, IOHK is looking forward to a gradual rollout of the Alonso testnet in May and June. First users will have the opportunity to test Alonzo Blue, the first alpha testing network, within the next month.
As IOHK explained:
The Alonzo hard fork will provide Cardano with exciting and long-awaited new features by integrating Plutos scripts into the blockchain. This will enable smart contracts to be implemented in Cardano so that a wide range of new DeFi applications can be distributed for the first time.
Cardano founder Charles Hoskinson recently pointed out in a YouTube video that interest will shift to addressing the scalability issue once Alonzo rolls out.