Cardano (CCC:ADA-USD) is set to move higher as one of the big three cryptocurrencies alongside Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD). That is the conclusion of Morningstar Portfolio Manager Amy Arnott, who says once Cardano is empowered to do smart contracts it will take a big three position.
One of the main reasons is that Cardano is close to rolling out its Alanzo testnet, which will allow the cryptocurrency to do smart contracts. These are essentially apps on a blockchain platform where no known as Dapps (decentralized applications).
Arnett told Business Insider magazine of her projection last week, indicating that institutional investors could become interested in the crypto. Here is what she told the magainze:
“Cardano is similar to Ethereum in that it’s a protocol that has a lot of potential technical applications. There’s a lot of enthusiasm about Cardano and also various stablecoins.”
Alanzo is the third phase of its development, the Goguen phase. That is when it will issue smart contracts and native blockchains. Reports came out two weeks ago that the first part of the Alanzo launch or “fork” as it is called, was successful. The full part of the launch should be ready in August.
Where This Leaves Cardano
The ADA crypto token is now the fifth largest cryptocurrency, according to Coinmarketcap.com. It had a market capitalization of $42.046 billion, as of July 31, at a price of $1.32 per ADA crypto token.
This introduction of smart contracts, once fully announced, will become a big boon for the crypto. I expect to see the price move significantly higher.
However, some are not so sanguine about the prospects of Cardano’s full release of smart contract ability. According to Coindesk.com, a prediction market on Polymarket opened up in mid-July that the Alanzo testnet would not be ready until October.
However, Charles Hoskinson, the Cardano founder, recently said that the first part of the Alanzo hardfork launch was successful. They are now moving to integrate the ability of the cryptocurrency to be allow Web compatibility of Cardano smart contracts on the blockchain platform’s mainnet. This is apparently scheduled for September, according to Cryptobriefing.com.
In addition, the next step after that is to allow Cardano on mobile devices. The idea is to allow smart contracts on mobile devices without having to download the whole blockchain.
What to Do With ADA Crypto
In addition, Webull, a commission-free brokerage firm like Robinhood, began approving Cardano for trading. Since Robinhood Markets (NASDAQ:HOOD) has the same clearing agent, they may soon allow ADA to trade. Cardano can also be bought on Binance US and other exchanges, so it is easily bought and sold.
I wrote in July that once Ethereum and Bitcoin start to rebound from their trough, Cardano is likely to move higher as well. Regardless, if the cryptocurrecy is able to successfully launch smart contracts by September, then it may begin its major recovery.
If its smart contract launch is successful in September, ADA could take off. It might make sense then to allocate a portion of your crypto portfolio to the ADA crypto.
On the date of publication, Mark R. Hake held a long position in Bitcoin and Ethereum but not any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.