Cryptocurrencies are steadily growing from their lows at the end of June. For six weeks now, bitcoin and ether have been forming a series of growing highs, during which both currencies returned to May levels.
After BTC and ETH collapsed from their 2021 peaks by almost half, the market capitalization of the entire asset class dropped from 2.4 to less than 1.4 trillion dollars. However, by August 24, the total value of all 11,382 cryptocurrencies had returned to the $2.077 trillion mark.
Cardano, which occupies the third line of the cryptocurrency hit parade, was trading at $2.40 per token in mid-May. After falling to the July low of $ 1.12, the currency has risen and recently overwritten the highs of mid-May.
The ascent of Cardano may be a sign of upcoming changes in the digital currency market.
Cardano ranks third in the cryptocurrency rating
Cardano is an open decentralized blockchain platform with open source code; management is carried out using a proof-of-ownership protocol. Cardano simplifies peer-to-peer transactions due to the internal ADA cryptocurrency. Ethereum co-founder Charles Hoskinson founded Cardano in 2015.
According to information from the Cardano website, this is:
“Blockchain is a platform for agents of change, innovators and people of progressive views, providing the tools and technologies necessary to create opportunities for the broad and narrow masses, as well as the implementation of positive changes on a global scale.”
As of the beginning of September 2021, Cardano occupied the third place in the list of the largest cryptocurrencies.
Top 5 digital currencies as of September 2, 2021 Top 5 digital currencies as of September 2, 2021
Trading at around $3.0451 per token, ADA is valued at more than $98.90 billion, inferior in this indicator to bitcoin (BTC) and ether (ETH), but ahead of Binance Coin (BNB) and stablecoin Tether. (USDT).
Bitcoin and Ether are still trading below the record highs of April-May
As of the end of August, bitcoin futures were trading at $47,210.
BTC/USD – weekly timeframe BTC/USD – weekly timeframe
As you can see, BTC is located about 27.9% below its record high in mid-April 2021.
As for the ether, on August 31, it traded at $ 3,415 per token, which is 22.5% lower than the record peak of May 2021.
Meanwhile, Cardano strengthened as bitcoin and ether rose from their lows at the end of June, updating the highs.
New ADA Highs
On August 26, ADA reached a new record peak of $2.9442 per token. As of September 2, the price was even higher and at the time of writing was $ 3.0123.
ADA/USD – weekly timeframe ADA/USD – weekly timeframe
The chart shows the recent ADA rally. In May, when the ether exceeded the $4,400 mark, the ADA token cost $ 2,3091. This milestone was taken on August 18, and the beginning of September was marked by a new maximum.
The ADA token is named after Augusta “Ada” King (or Ada Lovelace), a British countess who lived in the XIX century and was known for creating a description of a computer. She was the daughter of the poet George Byron and probably the first programmer.
The proof of ownership protocol randomly distributes tokens among users who put them up as collateral. Unlike Cardano, bitcoin and ether rely on proof of work, which means that transactions require access to a global computer network. Meanwhile, proof of ownership is a more environmentally friendly alternative, since it requires much less computing power. Cardano has a clear advantage over BTC and ETH in the eyes of environmentalists.
As of the end of August, there were 11,521 currencies with a total market capitalization of $2.100 trillion. The top three were estimated at 1.381 trillion, which represents more than 65.7% of the value of the entire asset class. Ether is more than four times more expensive than ADA, and the capitalization of bitcon was about ten times higher.
Meanwhile, the rise of ADA to the third step is a sign of the development of altcoins.
Confirmation of this fact (and possibly the driver of Cardano) was the debut of the altcoin Coti (COTI), focused on processing payments on Coinbase (NASDAQ:COIN) at the end of August. COTI rose 55% from 29 cents to 45 cents (although it has since sunk slightly). At the end of August, COTI was the 161st largest cryptocurrency, but by the time of publication it had dropped to the 190th line. Trading at 34.2 cents per token, COTI was valued at almost $300.88 million.
Alonzo Update and its role in the ADA Rally
A new round of Cardano growth was launched by a statement about the upcoming major update (hard fork) called Alonzo, which is scheduled for release on September 12. The hard fork will add support for smart contracts to the blockchain.
ADA also grew due to the upcoming listing on the Japanese stock exchange. Japan’s regulatory framework is one of the strictest in the world. The Japanese exchange allows you to trade biticoin, ether and Litecoin. ADA joined the elite of cryptocurrencies, taking the third line of the “hit parade” in August 2021.
Some cryptanalysts believe that Cardano may displace bitcoin and ether in the coming years. The prospects of fabulous profits from trading a token that costs less than $ 3 can attract speculators.
As is the case with other cryptocurrencies, invest no more than you are willing to lose, since high volatility remains a distinctive feature of this market. ADA has gained critical mass and provides sufficient liquidity. However, the possibility of aggressive price fluctuations will always present an accompanying risk.