As network developers seek to capitalize on the boom in decentralized financing, a little-known digital token tied to the Cardano blockchain just became the third-largest virtual coin in the world. The so-called ADA cryptocurrency has risen around 50% in the past week. This is a sign that there are new technological enhancements that will enable smart contracts on Cardano to reach its goal of September 12. This will allow its network to offer lucrative services such as DeFi, which Ethereum currently dominates.
According to CoinGecko, the market value of the ADA token is now more than $69 Billion. This is higher than any other rivals, except Bitcoin and Ether.
Antoni Trenchev (managing partner, cofounder of cryptocurrency lender Nexo) said that Cardano aficionados had been waiting — some impatiently — since a long time for news on smart contracts. “Cardano is fighting with no. 2 crypto Ethereum will be the leading blockchain that offers smart contracts.
The ADA’s more than 1,400% increase in the past year is greater than the returns from Ether and Bitcoin.
Despite some skepticism from prominent cryptocurrency commentators, the virtual coin has been climbing despite this. On Sunday, Mike Novogratz, Chief Executive Officer at Galaxy Digital LP, posted on Twitter that he had spoken to 20 of the most knowledgeable people in the space and none of them believed Cardano was gaining traction with developers.
Many people who don’t know crypto haven’t heard of Cardano. Yet, here it is with a market capital that surpasses many S&P 500 constituents, Mr Trenchev stated.
Decentralized finance, or DeFi, allows financial functions to be transferred onto digital ledgers. This allows people to lend or borrow money and earn interest in savings accounts without having to use traditional banks. This is part of a larger trend in increased blockchain usage.
Recent rallies in Bitcoin and Ether, ADA, and other tokens have helped the cryptocurrency market surpass $2 trillion in value over the weekend. This is the first time the market has surpassed $2 trillion since May, when the notoriously volatile sector suffered a rout.