Benjamin Cowen, a crypto analyst and trader, has recently analyzed the likely impact of the much-anticipated upgrade to the Cardano network on the price of the digital token ADA.
According to Cowen in a new strategic session, the activation of smart contracts functionality on Cardano has the potential to push the price of the third-largest cryptocurrency by market cap, ADA, to a new all-time high.
The crypto analyst also highlighted how Cardano (ADA) could replicate Ethereum (ETH) in terms of growth and expansion in the smart contracts ecosystem.
Benjamin Cowen noted:
“A lot of ETH is getting eaten up on all these different platforms, of people that are actually utilizing Ether: NFTs (non-fungible tokens), DeFi (decentralized finance).
“There’s just so many various applications right now, so many dApps that people are using for Ether, and arguably that’s contributed to the high market capitalization.
“Cardano does not really have that effect yet. It does not have that same level of network effect now. Obviously, we hope it can grow into that.
“None of us, I don’t think, are claiming that Cardano’s ecosystem is currently bigger than Ethereum’s, but I do think that Cardano will grow with time, and I do think that as more utility is actually built out on the platform, that this will have a positive impact on the price.”
Cardano (ADA) Against Ethereum (ETH) Pair
Cowen further stated that ADA/ETH pair still has a long way to go before it could reach a new all-time high. He thinks another 68% move could take the pair to its new ATH:
“For ADA to reach a new all-time high against Ethereum, it would need to rally… another 68% move or so. A 68% move by ADA for a constant Ether would actually put it closer to $4.50. Now, do I anticipate ADA going to $4.50 this month or next month? Probably not, to be completely honest, but I do think we will eventually make it there.”
The trader added that Cardano (ADA) is currently in a large reaccumulation phase that ranges between $1 and $3. Howbeit, he is of the opinion that the activation of smart contracts functionality on Cardano could ignite ADA price break out.
Considering Cowen’s illustration, ADA could soon test $7, which represents a relatively 290% surge from current prices:
“Whatever this ends up being, I’m just speculating that it’s a long reaccumulation window, and that we will ultimately blast out of it to a new milestone.”