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Cardano has seen the light of the day with ADA token and saw a surprising jump of nearly 50% over the past week alone. A little-known digital coin has become the third-largest token after Bitcoin and Ethereum.
Cardano’s ADA token, which has hardly been talked about in the crypto community, has seen the light of the day with the surprising jump of around 50% over the past week alone. A little-known digital token has just become the third-largest virtual currency in the world. Network developers looking to ride the boom in decentralized finance.
On seeing the increasing value and price of the token, people are being more optimistic than before for ADA. It means that the technological enhancements will allow smart contracts on Cardano by its announced goal of Sept.12. It will enable its network to give profitable services like DeFi, where Ethereum presently dominates.
Surprise rise
However, there are still many who are even now skeptical about the coin. The ADA market value has reached more than $69 billion- bigger than all rival tokens except Bitcoin and Ethereum, as per CoinGecko.
Antoni Trenchev, Managing Partner and Co-founder of Nexo, a crypto lender firm said that the Cardano enthusiasts have been waiting for this news for quite a long time and with this rally, it seems like an eternity for some news on smart contracts. The token is giving competition to number two cryptocurrency Ethereum to be the preeminent blockchain offering smart contracts.
The jump of the coin is more than 1400% over the past year. It has exceeded the returns from both Bitcoin and Ethereum. There was a lot of negative thinking, skepticism going around over the utility of Cardano. Despite that, the virtual coin has climbed up.
Mike Novogratz, LP Chief Executive of Galaxy Digital wrote on his Twitter handle on Sunday that nearly 20 people have shown that Cardano has traction with developers. Many people outside crypto have never heard of Cardano. Yet the token is spearheading with a market cap that tops many S&P 500 index constituents.
Role of DeFi
Decentralized finance or known as DeFi- ports financial functions onto digital ledgers. This allows people to do activities like lend or borrow funds and earn interest in saving like accounts. For this, there is no need for a traditional intermediary like banks. Its growing popularity is part of a wider trend of increased blockchain usage.
The cryptocurrency market is witnessing an upward trend because of the recent rallies in bitcoin, ether and ADA tokens and others. The value of the market vault passed $2 trillion over the weekend for the first time since May.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
