Prices generally improve in crypto networks after they undergo an upgrade. The same was seen when EIP-1559 of Ethereum was launched. Its asset value moved upward to $3000. However, the price of Cardano went down after its Alonzo upgrade which saw introduction of smart contracts features in its blockchain. Its price dropped by 50% as per the available data.
Price Decline of Cardano after Alonzo Upgrade
The price of Cardano on Sep. 2 was at its highest level $3.10 as the news of Alonzo upgrade excited its investors. The BTC adoption by El Salvador was also a contributing factor in this excitement. However, crypto markets saw a quick decline the day the top digital asset was officially adopted by El Salvador. The features of smart contract were implemented with this upgrade by the parent company of Cardano – IOHK. This announcement led to an increase in the asset value and its price went up to reach $2.71. This price came down quickly after 24 hours and settled at $2.5. The market cap of Cardano was expected to cross $100 billion but it went down to $50 billion. This crash made it lose its place in the list of top five crypto assets.
Solana Takes Advantage of This Price Crash
While the price of Cardano has been declining quickly since September, the digital asset Solana‘s value has increased significantly in the same time. It is referred as “Ethereum killer” and many institutional investors have been adopting it. Its value on Nov. 6 had reached its highest $260. The TVL of DeFi protocols using this network as their underlying structure also went past $14 billion during the same time. NFT adoption on Solana has been increasing after it partnered with FTX.