Cardano’s native token, ada, surged as much as 16% on Friday after the cryptocurrency’s developer announced its much-anticipated upgrade will be released on September 12.
The news drove ada to a two-month high of $2.03 as of 10:00 a.m. ET, according to Coinmarketcap.com. The token retreated to below $2 afterward, leaving it about 17% below its all-time high of $2.39 seen in mid-May. Rival coin ether also rose 5% to $3,211.
Nigel Hemsley, head of delivery at Cardano, revealed the release date of the Alonzo Purple upgrade in a video on Friday.
The upgrade promises to allow engineers to run advanced smart contracts and decentralized finance (DeFi) applications on the cardano blockchain. It could help cardano match the ethereum network’s capabilities.
Smart contracts are programs stored on a blockchain that automatically execute an agreement once conditions are met. They allow engineers to use the blockchain to perform functions like sending information or documents. DeFi applications allow for peer-to-peer transfers of capital or assets without an intermediary.
Cardano’s highly-anticipated upgrade is a good reason for investors to stack up the coin, according to Yuri Mazur, head of data analysis at crypto exchange CEX.IO Broker.
The ada token’s return to record highs will be a long journey, he said, but the recent surge in interest could fuel buying momentum and drive growth across the board.
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