Cardano experienced a remarkable price surge of 23.9% on July 13, leaving investors curious about the potential for further gains. This significant rally comes on the heels of a favorable judicial decision regarding XRP (XRP), leading many to question if Cardano (ADA) has what it takes to break above the $0.40 mark.
Cardano 1-day price in USD at Coinbase. Source: TradingView
There are three reasons to support Cardano’s bullish momentum, including its potential to integrate other blockchains, increased activity in decentralized applications (DApps) and the decreased regulatory risk, although the latest XRP event requires a more cautious approach.
SEC actions specifically named ADA as a potential security
Cardano and its ADA token found itself in the spotlight as the United States Securities and Exchange Commission (SEC) referred to it as a potential security during the recent court actions against the Coinbase and Binance exchanges. However, it’s important to distinguish that while the staking offering may be considered a security, it does not pose a direct risk to Cardano or its development companies.
Following the SEC’s remarks in June, ADA faced a 36% correction, dropping to $0.24. However, the XRP ruling on July 13 helped alleviate regulatory risks, leading to a boost in the rally of ADA and other coins impacted by the regulator’s comments.
The idea of implementing sidechains sparked additional interest
After a recent video shared by John Woods, chief technology officer at the Algorand Foundation, Charles Hoskinson, founder of Cardano, proposed incorporating Algorand (ALGO) as a Cardano sidechain.
It might be prudent for Algorand to consider becoming a sidechain of Cardano. Always here to help. https://t.co/h3lQeF7WlK
— Charles Hoskinson (@IOHK_Charles) July 12, 2023
Although it may seem unlikely for the Algorand community to accept such a suggestion, the proposal gains relevance amid AlgoFi’s shutdown announcement on July 11. The decision followed the SEC’s allegations of security-like characteristics against Algorand due to its initial coin offering (ICO). This could provide a way for Algorand to…
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