Cardano to launch ERC-20 converter to bring Ethereum tokens on testnet next week

  • Cardano is expecting the launch of its ERC-20 converter next week.
  • The migration tool will enable Ethereum tokens to move to the Cardano blockchain.
  • SingularityNET will have its native token as the first ERC-20 coin migrated to Cardano.

The Cardano blockchain is inching closer to introducing decentralized finance utilities, as the platform’s ERC-20 converter is close to deploying on the testnet. IOHK project manager Francisco Landino, the research and development arm behind the blockchain, stated that the new tool is coming on the testnet next week.

Cardano to introduce multiple new functionalities

During the latest Cardano 360 event, Landino announced that the ERC-20 converter would be deployed on the testnet the following week. The new migration tool was first revealed in May, aiming to allow users to take Ethereum-based tokens over to the Cardano blockchain.

According to Landino, users of Ethereum-based tokens will be able to benefit from Cardano’s transaction capacity and lower fees once the migration tool is deployed. The ERC-20 converter would also enable users to experience enhanced security, reduced cost and interoperability on the blockchain. 

The converter bridge was planned to come into effect after the Alonzo hard fork, which will introduce smart contract functionality to the network. The Alonzo hard fork is expected to take place on September 12.

The world’s first decentralized artificial intelligence network, SingularityNET, will have its native AGIX token to be the first ERC-20 token migrated to Cardano. 

According to Cardano founder Charles Hoskinson, over 100 companies are moving from Ethereum to Cardano.

Cardano price ready for a 35% ascent

Cardano price has been trending upwards since the July 20 bottom, setting higher highs. An ascending parallel channel pattern has emerged on the 4-hour chart, as the third-largest cryptocurrency by market capitalization continues to trade within the technical boundaries.

Currently, Cardano price is bouncing off the downside trend line of the governing technical pattern at $2.49 and the 78.6% Fibonacci extension level at $2.55. ADA must continue to hold above these support levels for the bulls to expect an optimistic outlook to materialize. 

If the prevailing chart pattern is robust, Cardano price could aim to tag the upper boundary of the parallel channel at $3.46, coinciding with the 127.2% Fibonacci extension level. 

ADA/USDT 4-hour chart

The next obstacle for ADA is at $2.96, given by the breakout line of the Momentum Reversal Indicator (MRI), corresponding to the middle boundary of the technical pattern.

Should Cardano price fail to hold above the aforementioned lines of defense, further support will arise at the support line by the MRI at $2.41.