Cardano’s dramatic price rise of 23.9% on July 13 has drawn a significant amount of attention from investors, as optimism for further growth rises. This remarkable surge coincides with a beneficial court ruling concerning cryptocurrency XRP, leading to speculation about Cardano’s potential for exceeding the $0.40 mark.
There are several factors contributing to Cardano’s bullish trajectory. Among them, its interoperability with other blockchains, increased application activity in its decentralized network, and reduced regulatory risk, particularly things related to the latest event involving XRP. However, this last factor also calls for a measured approach.
US SEC (Securities and Exchange Commission) has somewhat brought Cardano into the spotlight, referring to ADA, Cardano’s token, as a potential security during the recent court cases involving crypto exchanges Coinbase and Binance. However, it should be clarified that the involvement may mainly concern the staking offering, not necessarily posing a direct threat to Cardano and its associated entities.
The proposal of implementing sidechains also led to an increase in investor interest. This was sparked by a video posted by John Woods, CTO of the Algorand Foundation. Charles Hoskinson, the founder of Cardano, subsequently proposed incorporating Algorand as a Cardano sidechain as a way to circumvent regulatory scrutiny.
Another crucial component of the current bullish trend is ADA’s increasing activity in terms of smart contract utilization and the flourishing of decentralized applications (DApps) and nonfungible token (NFT) markets, which have showcased consistent surge over the past few days.
Granted, ADA’s regulatory standing could nonetheless still face issues despite the promising data and current price surge. The beneficial XRP court ruling does not precisely exonerate Cardano’s initial coin offering (ICO), which still has the potential to influence Cardano’s regulatory status moving forward.