Cardano (ADA) experienced a singular terms surge of 23.9% connected July 13, leaving investors funny astir the imaginable for further gains. This important rally comes connected the heels of a favorable judicial determination regarding XRP, starring galore to question if ADA has what it takes to interruption supra the $0.40 mark.

There are 3 reasons to enactment Cardano’s bullish momentum, including its imaginable to integrate different blockchains, accrued enactment successful decentralized applications, and the decreased regulatory risk, though the latest XRP lawsuit requires a much cautious approach.
SEC actions specifically named ADA arsenic a imaginable security
Cardano and its ADA token recovered itself successful the spotlight arsenic the Securities and Exchange Commission (SEC) referred to it arsenic a imaginable information during the caller court enactment against Coinbase and Binance exchange. However, it's important to separate that portion the staking offering whitethorn beryllium considered a security, it does not airs a nonstop hazard to Cardano oregon its improvement companies.
Following the SEC's remarks successful June, ADA faced a 36% correction, dropping to $0.24. However, the recent XRP ruling connected July 13 helped alleviate regulatory risks, starring to a boost successful the rally of ADA and different coins impacted by the regulator's comments.
The thought of implementing sidechains sparked further interest
After a caller video shared by John Woods, CTO astatine Algo Foundation, Charles Hoskinson, co-founder of Cardano, projected incorporating Algorand (ALGO) arsenic a Cardano sidechain.
It mightiness beryllium prudent for Algorand to see becoming a sidechain of Cardano. Always present to help. https://t.co/h3lQeF7WlK
— Charles Hoskinson (@IOHK_Charles) July 12, 2023Although it whitethorn look improbable for the Algorand assemblage to judge specified a suggestion, the connection gains relevance amidst AlgoFi's shutdown announcement connected July 11. The determination followed the SEC's allegations of security-like characteristics against Algorand owed to its ICO. This could supply a mode for Algorand to debar regulatory scrutiny, and it could besides boost the adoption of Cardano's ecosystem.
It's worthy noting that smaller altcoins could beryllium incentivized monetarily to go a Cardano sidechain, leveraging Cardano's affluent treasury and selling potential.
Increased enactment successful Cardano DApps and NFT markets
Smart declaration enactment plays a captious relation successful the occurrence of blockchains designed for decentralized applications, particularly arsenic Ethereum struggles with soaring transaction fees. Therefore, assessing ADA’s enactment successful presumption of deposits locked connected astute contracts and the fig of DApp users becomes important successful determining the sustainability of the existent bull run.

According to DefiLlama, Cardano's Total Value Locked (TVL) successful ADA presumption accrued by 10% month-on-month, reaching 550 cardinal ADA connected July 14. Additionally, DEX volumes saw a 6% summation implicit the past 7 days.
Cardano's NFT sales, arsenic reported by CryptoSlam, surged by 56% to $3.1 million, outperforming starring platforms similar Solana and Ethereum.
Data sounds promising, but ADA could inactive look regulatory setbacks
The caller rally successful ADA is surely encouraging, but determination are inactive immoderate risks to see earlier investing successful the project.
Despite the beneficial XRP decision, it's important to enactment that Cardano's ICO was not explicitly cleared by the tribunal ruling, arsenic it solely addressed income via exchanges and OTC desks. The ongoing XRP proceedings volition further find the destiny of Cardano's regulatory status.
Related: Can XRP terms deed $1? Watch these levels next
Additionally, ADA’s TVL of $200 cardinal lags down different layer-1 astute declaration alternatives specified arsenic Tron ($5.9 billion), BNB Smart Chain ($3.4 billion) and Avalanche ($727 million). This suggests that determination is inactive constricted request for ADA's services.
To solidify its presumption and perchance surpass the $0.40 mark, Cardano needs to proceed increasing and delivering connected its promises, including the planned updates for 2023. Important upcoming updates see the Hydra layer-2 solution that uses sidechains to offload transactions from the main chain, and Basho, a layer-1 scalability and show betterment connection including improved artifact structure, parallelization, and pipelining.
This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.