Cardano (ADA) is launching a new Ethereum (ETH) compatible sidechain proof of concept, according to a recent announcement by the development team at Input Output Hong Kong (IOHK).

The team is launching a new public testnet that is compatible with the Ethereum Virtual Machine (EVM) to expand the utility of the Cardano blockchain.

The EVM sidechain testnet is a proof of concept for a Cardano sidechain that uses the components of the sidechain toolkit, serving as an example of how to build a sidechain with new features such as different smart contract languages or consensus protocols.

The testnet will be running for an unspecified amount of time, but IOHK encourages developers and validators to get involved and collaborate.

Recently, there has been a spike in whale activity on Cardano, leading some analysts to predict that the price of ADA could soon skyrocket.