A little-known digital token tied to the Cardano blockchain has just surpassed other top alt-coins to become the third-largest virtual currency worldwide, as network developers aim to capitalise on the surge in decentralised finance that has swept the world.
Currently, the popular alt-coin traded on cryptocurrency exchanges like CoinSwitch Kuber, Cardano’s native coin, ADA, defied a major price crash warning to rise to an all-time high, surpassing the previous record. For the very first time on Friday, the ADA/USD rate of exchange surpassed $2.56, marking the culmination of a 154.54% price increase that began on July 20. This was achieved despite renowned trader Peter Brandt’s warning of a price fall, which was predicated on a typical bearish pattern known as the head and shoulders pattern.
With the price of the ADA coin soaring by about 50% in only the past week, there is growing confidence that new technological advancements will enable payment systems on Cardano earlier than the previously declared date of September 12. This will allow its network to provide profitable services like DeFi, where Ethereum presently holds a dominant position.
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Upgrade set in motion as ADA prepares for DeFi
In anticipation of the planned “Alonzo” upgrade, which is scheduled to be released on September 12, ADA investors are continuing to drive the value of Cardano higher. The Alonzo upgrade will bring smart-contract* functionality to the blockchain, allowing Cardano to establish itself as a legitimate player in the decentralised finance (DeFi) space.
ADA is among the most highly sought-after cryptocurrencies for new traders due to its still-relatively low price and excellent marketing as one of the potential “Ethereum killers.” There is little reason to suspect that Cardano is a favourite of the crypto world, and ADA is among the most highly sought-after cryptocurrencies for new traders due to its still-relatively low price and a promising future.
With Cardano’s ability to handle smart contracts—self-executing agreements among buyers and sellers—the token has gained consistently while Ethereum, Cardano’s core competitor, continues to dominate the growing $100 billion decentralised finance sector.
Recently, the Solana blockchain ecosystem began to take shape with DeFi and NFTs, but despite the fact that Cardano has no actual use cases as of yet, the cryptocurrency’s market capitalization is about 4x the size of Sol’s market capitalization of $20 billion. Cardano has practically risen from the ashes on the backs of speculators and the promise of a fantastic and extremely transparent development team.
*What are Smart Contracts?
Smart contracts, also known as blockchain contracts, are distinguished by the method in which they assure conformity between the two parties involved in the transaction. The immutability of a self-executing contract is one of the most notable characteristics of this type of contract. It implies that once codes, regulations, and even transactions have been written into the blockchain, it is hard to reverse, alter, change, or tamper with them.
Smart contracts, similar to the traditional ones, are contracts between two or more parties that do not require the participation of a third party to monitor or enforce the agreement.
It is completely self-executing!
As part of its operation, the blockchain network preserves a transaction record that is visible, secure, and unchangeable, ensuring that evidence of ownership is established and transferred. Contract discussion and application are made considerably more accessible, and the whole edit record of the deal is made publicly visible to all parties involved.
Cryptocurrencies on a bullish run
When people use decentralised finance, also known as DeFi, they are transferring financial functions directly onto digital ledgers, allowing them to perform things such as, lend or borrow cash and collect interest in a savings-like account, all without the need for traditional middlemen such as banks. Its growing prevalence is part of a broader trend of rising blockchain usage, which is becoming more widespread.
A series of recent rises in cryptocurrencies such as Bitcoin, Ether, ADA, and other tokens pushed the cryptocurrency market to surpass $2 trillion in value this weekend, a first since the mid-May crash.
With a gain of 1,300% in only one year, ADA is among the top-five best-performing cryptocurrencies, outpacing gains of 1,030% for Binance Coin, 330% for Ether, and 59% for Bitcoin, among other cryptocurrencies. The token, on the other hand, is extremely vulnerable to the enormous volatility of the larger cryptocurrency market.
As a result of RBI’s crypto crackdown in 2018, the value of ADA plummeted by roughly 90%, ushering in a years-long bear market for the young sector. However, with the emergence of popular crypto exchanges in India, investments in crypto assets jumped from $200 million in 2019 to $40 billion in 2020. As of today, CoinSwitch Kuber , India’s leading crypto exchange has over 9 million registered users invested in crypto.
All eyes will now be on the September 12 “Alonzo” upgrade and how it will tie back to ADA’s current positive run. If things go well, ADA could be seen as a primary competitor to Ethereum, ushering yet another era in the cryptocurrency sector.
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