Key Points – Crypto sentiment remains upbeat as the weekend approaches, with Cardano hovering just above its 50DMA near $0.50.- A continued upturn in macro sentiment next week plus Vasil hard fork optimism could send ADA back to $0.55.- Cardano’s new capability for multi-address transactions was being hyped on social media this week.Market Update Crypto sentiment remains fairly upbeat as the US trading session gets underway, with Bitcoin still trading near $23,500 and Ethereum close to $1,600, both close to weekly highs.Despite downside in large cap US social media stocks after dismal Snap and Twitter earnings, major US equity indices look set to end the week well in the green, having broken out to multi-week highs this week.
This upbeat tone to global macro trading conditions has been a significant help to crypto this week.Total cryptocurrency market capitalization was last around $1.04 trillion, up around $100 billion since the start of the week.
Citi Think Crypto Contagion Fears Have Peaked According to US megabank Citi , crypto contagion fears have likely peaked for the time being.In a note published on Wednesday, the bank’s research team cited the recent narrowing of the staked Ether (stETH) to Ether (ETH) discount, which it thinks is a sign that liquidity stress may have passed.With many of the sector’s largest hedge funds, brokers and market makers having now disclosed their exposures, Citi said it thinks that the “acute deleveraging phase” is now over.
The bank also cited a slowdown in the outflows from stablecoins and crypto Exchange Traded Funds ( ETFs ).If Citi is right, a soothing of crypto winter/contagion fears could be a tailwind for the sector in the coming months.
Cardano (ADA) Price Prediction The native token to the Cardano blockchain ADA was last changing hands almost bang on the $0.50 level, having failed an earlier attempt to push above $0.51.That means that ADA has continued to pivot on either side of its 50-Day Moving Average (currently at $0.493) for a second day.If it can close above its 50DMA, that would be a bullish sign for the price action over the weekend and into next week.Short-term speculators remain bullish on ADA after Monday’s break above a key downtrend that had been capping the price action since mid-June.
It has managed to remain above this downtrend, even though it has pulled back sharply from a test of resistance in the $0.55 area earlier in the week.If the bulls can regain control in the coming days, a test of the $0.55 level once again is likely.If the Cardano bulls can push the cryptocurrency above this level, then that opens the door to a run higher towards the late May highs around $0.69.Cardano’s Vasil hard fork upgrade remains a key theme in the weeks ahead as it will allegedly deliver significant capability and scalability benefits to the blockchain.Analysts have said that when Cardano founder, Charles Hoskinson, gives an official date for the upgrade, this could be a big boost for ADA.
Another key event to watch next week will be the Fed’s policy announcement and Q2 US GDP figures.Analysts suspect that the worsening US economic outlook and a softening of core price pressures in recent months might encourage the Fed to outline a slightly less hawkish rate hike outlook for 2023.The central bank is widely expected to implement a second successive 75 bps rate hike.
A more dovish tilt to the meeting could provide a significant short-term boost to speculative risk assets such as stocks and crypto, including Cardano.
Cardano’s New Multi-address Transactions Could be its “Secret Sauce” There was some buzz on social media over Cardano’s capacity for multi-address transactions, a new feature that was recently added to Cardano’s Eternl Wallet.One Twitter user, a Cardano community-focused account called ADA whale, claimed that this sort of feature could be part of Cardano’s “secret sauce” behind why it will be a big contender to run global financial infrastructure in the future.This sort of thing is Cardano’s secret sauce.
It’s useful today, shows that the space’s focus on TPS is dumb But the flexibility and capacity displayed at the very base layer also shows why Cardano is such a big contender for running global financial infrastructure in future — ADA whale (@cardano_whale) [July 21, 2022] Another Twitter user explained that using this new feature, users can send 100 assets to different addresses in one transaction.This contrasts with the Ethereum or Solana blockchains, where sending 100 assets would require 100 separate transactions.Cardano proponents argue that this defeats any argument that a blockchain with more transactions per second is necessarily better.On Cardano you can send Multiple Assets in a single transaction.
That’s means on Cardano you can send 100 Assets to different addresses in one single Transaction.This would take 100 separate Transactions on Ethereum or Solana and totally destroys any TPS argument.Need a new 📏 — Lucid (@LucidCiC) [July 19, 2022] Cardano Will Fail, Implies Blockdaemon’s Ethereum Ecosystem Head The head of Blockdaemon’s Ethereum ecosystem Freddy Zwanzger told Cointelegraph during this week’s Ethereum Community Conference (EthCC) that he expects Ethereum to retain its position as the leading smart contract platform.“All the Ethereum killers from back in the day didn’t succeed, and I don’t expect them to succeed at all”, he added.
Cardano, alongside other blockchain projects such as Solana and Polkadot, are often referred to as so-called “Ethereum killers”.The implication from Zwanzger is that Cardano will fail in its aim to become a dominant blockchain.At the Ethereum Community Conference in Paris this week, co-founder Vitalik Buterin spoke about the “Surge” upgrade that would follow the Ethereum merge, which is scheduled to take place in September.The “Surge” will see the number of transactions per second that can be conducted on the Ethereum network boosted to around 100,000, Buterin said..
