Cardano (ADA) was dorsum in the spotlight Sunday, leading a tepid market recovery post-obit news that the developer network was inching closer to launching smart contracts.

Market update

The combined value of all cryptocurrencies rose 4.4% on Lord's day to $1.6 trillion, according to data from CoinGecko. Amongst the majors, information technology was Cardano's ADA leading the rally with a 17% gain. ADA peaked at $1.70, co-ordinate to TradingView, and was last seen hovering just due north of $1.63.

At current values, Cardano was the fourth-largest cryptocurrency with a total market place capitalization of $52.9 billion.

ADA posted a stiff rebound on Sunday after languishing for much of last week. Source: TradingView.

Every cryptocurrency in the top 20 reported gains on Sunday. Bitcoin's (BTC) price rose iii.v% to $35,833, Ether (ETH) added 4.3% to $2,431, and Binance Coin (BNB) climbed 6% to $327.

Despite the pocket-sized rally, market place sentiment remains tilted to the downside this weekend, with investors continuing to speculate near whether Bitcoin has actually bottomed out. The Crypto Fear & Greed Alphabetize has fallen to 10 — on a calibration of 1–100, where lower scores are associated with "extreme fearfulness."

What's driving ADA?

The presence of oversold conditions following the latest market place correction appears to accept worked in ADA'due south favor on Sun. The cryptocurrency briefly penetrated the oversold indicator on the hourly Relative Forcefulness Index on Saturday earlier rebounding sharply over the side by side 24 hours.

Prior to the May 19 crypto marketplace flash crash, ADA was among the pinnacle-performing digital assets. It peaked at $2.46 on May 16 earlier unwinding 55% over the adjacent week. Looking across the immediate shift in market sentiment, ADA fundamentals remain intact.

On a fundamental note, ADA supporters are jubilant the launch of the Alonzo smart contract testnet by Cardano's development team Input Output Hong Kong, or IOHK. As Cointelegraph recently reported, IOHK was eyeing a gradual deployment of Alonzo's testnet in May and June. Early adopters will have the opportunity to test Alonzo Bluish, the get-go blastoff testnet, over the next month.

As IOHK explained:

"The 'Alonzo' hard fork will bring exciting and highly-predictable new capabilities to Cardano through the integration of Plutus scripts onto the blockchain. These volition allow for the implementation of smart contracts in Cardano, enabling the deployment of a broad range of new DeFi applications for the kickoff time."

Cardano founder Charles Hoskinson recently indicated in a YouTube video that attention will shift to solving the scalability issue once the Alonzo rollout is complete.