These next few months on the Cardano blockchain will see quite a lot of upgrades on Cardano as well as an impact on its price. The next upgrade on the Cardano blockchain is the Alonzo upgrade scheduled to come up on the 12th of September. Several analysts and crypto enthusiasts have been waiting for this upgrade as one of its main aims was to introduce a smart contract on the Cardano blockchain. Recall that Cardano is predicted to be the ethereum killer and with smart contracts coming alive on the Cardano network means the reign of ethereum as the best smart contract coin is about to end. Before now, Ethereum leads the DeFi community as the leading network regarding smart contracts.
The Alonzo upgrade comes with smart contract deployment, but there’s also a part of NFT attributed to the Cardano upgrade. However, it should be noted that any price surge related to NFT after this upgrade could be a bull-trap. NFT (non-fungible tokens) have been in circulation all over the crypto community and has started making wave even more in 2021. Nonetheless, while some blockchains such as Tron are recording large price upsurge as a result of the increase in the NFT trends, some are recording little or changes in price.
How can NFT Trend influence the price of Cardano?
Before now, as mentioned above, the growth of NFTs has been growing all over several blockchains, and now it’s about to influence the Cardano network as well. So, you might want to ask, “What are NFTs?” Apart from being known as non-fungible tokes, NFTs are digitally stored blockchain files in the form of JPEGs, audio or video files, or even GIFs that can be bought, stored, and sold as valuable assets. In other words, NFTs are collectibles synonymous with fine arts in a more physical setting. However, in this case, the auctioning is done online and through the help of blockchain technology. This is symbolic of how bitcoin has become the digital equivalent of Gold and Ethereum the digital equivalent of Silver.
The influence of NFT trends on the Cardano network is still unknown since there’s no known NFT on the Cardano network as of the time of this wring. Nonetheless, there are samples on the ethereum network and the Tron network, and even till now, the influence of NFT sales on these networks is negligible. Hence, it’s simple to assume the same can be achieved on the Cardano network. Cardano’s founder is currently working towards convincing NFT platforms to move towards using Cardano. We may experience NFT sales on the Cardano network soon. We are having an integrated update of Cardano and DeFi and the accommodation of smart contracts on the Cardano blockchain.
If NFTs could be adopted into the Cardano network, then it’s safe to also assume that it’s going to be a game-changer both in the price of Cardano and the rate at which it presents itself as the actual ethereum killer. Charles Hoskinson is working towards making this trend possible. This milestone will also increase the demand for the Cardano blockchain as a medium of exchange, which would positively affect the price of the ADA native token. Be sure to note that in the crypto community, nothing is promised, and anything could happen. So, NFTs being price boosters on other networks don’t necessarily mean it will be a booster on the Cardano network.
The aim of Cardano being the exact medium of exchange for NFTs is meant to be a bullish movement, but once NFT mania starts to act all up on the price impact of NFTs, it could make the price trend of Cardano quite hard to achieve a steep slope. Can an NFT boost on the Cardano network be big? Yes, it could, and it could also span for the short term. So, it’s still quite early for the decision as regards the influence of NFT on the Cardano price. Nonetheless, endeavor you don’t invest too soon once NFTs become accepted. For those crypto investors looking forward to investing in Cardano, they might want to consider buying it now before the transition into the NFTs and DeFi. The NFT hype is excellent price hype, but once it starts to become negative, you might want to take some steps backward and take time to study the price trends and make the investment as appropriate as possible. The price of cardano in the coming months is said to be bullish with the upcoming upgrades.