Cardano
Cardano’s new Bitcoin bridge – Enough to push ADA above $0.33?
Is the BitcoinOS launch for Cardano poised to reinvigorate ADA’s market presence?
- Cardano formed a strategic partnership with BitcoinOS, enhancing its DeFi landscape
- Collaboration could be a crucial catalyst for an ADA breakout on the charts
Recent discussions have centered around the potential expansion of Cardano’s [ADA] blockchain. Now, those conversations are taking a significant step forward.
In a significant development, EMURGO, the commercial arm of Input Output Global, has announced a partnership with BitcoinOS to establish a bridge connecting the Cardano and Bitcoin blockchains.
Building on each project’s strengths
As revealed on X (formerly Twitter), the BitcoinOS Grail Bridge will create a connection between the two blockchains, positioning Cardano as the first layer-1 network to integrate with the BOS infrastructure, thereby enhancing Bitcoin’s potential.
While Bitcoin is a pioneering blockchain, it has limitations in smart contract capabilities, compared to newer protocols.
In response, the bridge will enable liquidity flow between the two chains, allowing users to leverage both proof-of-work (PoW) and proof-of-stake (PoS) systems.
On the other hand, Cardano has established itself as a leader in the DeFi space, boasting over 1,370 Web3 projects and nearly 100 million transactions processed on its network.
This strong performance gives Cardano a distinct edge over its competitors, making it the ideal partner for this groundbreaking initiative.Impact on Cardano’s price action
While October usually brings bullish momentum for cryptocurrencies, Cardano has struggled to keep pace with its competitors. Notably, Solana has emerged as a frontrunner, boasting weekly gains of over 10%.
In this context, the recent launch of the BitcoinOS Grail bridge for Cardano is both timely and crucial. Especially for revitalizing ADA’s position in the market as it approaches its previous support line.
With 80% of ADA stakeholders facing net losses following a month of consolidation, the buzz around this development may incentivize holders to seek high yields.
Source : IntoTheBlock
Interestingly, over the past two days, approximately 60 million ADA tokens have entered large holder wallets. This accumulation might mean that the press time price of $0.33 may be seen as a local low.
However, this doesn’t guarantee an imminent breakout as significant liquidity will be needed to spur a move higher.
Read Cardano Price Prediction 2024 – 2025
Unless retail investors – who make up 70% of the large holder cohort, collectively holding around $26 billion worth of Cardano – view this price point as a “dip” worth buying, it will be challenging for ADA to break free from its consolidation phase.
Nonetheless, this news is a positive start, especially with the RSI hitting oversold conditions, suggesting there’s potential for buying opportunities.
