Many analysts point out that Cardano, the platform that hosts the ADA cryptocurrency, could become the most valuable in this market. But could it surpass the price of Bitcoin? That is unlikely but it could overthrow BTC in terms of total market capitalization.
Cardano has increased its value by almost 1000% during the year 2021. That is why many point out that it could become the most prominent digital currency in the world.
Cardano’s price in the spotlight
During the last weeks of August, the price of Cardano grew by almost 40%. With this rise, it surpassed the price of Binance Coin and positioned itself as one of the most valuable cryptocurrencies in the market.
On September 6, Cardano reached a value of 2.8 dollars. In turn, ADA has increased its price.
That happens because fans of blockchain technology are looking for faster and more efficient options than Bitcoin. The founder of this cryptocurrency, Charles Hoskinson, has pointed out that his technology uses less energy than 0.01% of the Bitcoin network.
Moreover, the technology Cardano proposes is not dependent on large processors to secure ADA transactions.
What is Cardano, and why is it important?
Cardano is a blockchain that owns its cryptocurrency, known as ADA. The name refers to the British Countess Augusta “Ada King”, known for her theoretical computing work.
This cryptocurrency was created in 2015 and launched in 2017 by one of the founders of Ethereum, the aforementioned, Charles Hoskinson.
The reason why Cardano matters is that it reached $3 for the first time. It’s adding to the new wave known as “altseason”, with the rise in popularity of alternative cryptocurrencies.
The rise in alternative cryptocurrencies is taking the markets by storm during September 2021 and is led by Cardano. After showing strength for several days in a row, it finally broke the $3 barrier, which drove everyone crazy.
At the time of writing, Cardano is back down to $2.16, which means that ADA/USD is no longer holding above $3, so the excitement has stabilized.
So far this month, weekly altcoin gains approached 20%, Cardano had a unique shine in this dynamic.
For its part, Ethereum continues to trend higher but remains far from its all-time high seen in mid-May of $4,400, specifically by a gap of about $1,000.
The bull run of cryptocurrencies
This bullish trend of altcoins is also supported by the most important cryptocurrencies, such as Ethereum and Bitcoin. However, all eyes are pointing towards these new cryptocurrencies. The reasons may be several:
- Their blockchain technology is more efficient and up-to-date than the one underpinning Bitcoin.
- The brutal increase in the price of Bitcoin no longer makes it so attractive in the eyes of market speculators, who are looking for high returns on investment in the short term.
- Its low price compared to other cryptocurrencies allows the typical user to get hold of several units by investing very little money.
Everything points to the fact that we are entering the second phase of a bullish cycle not only for altcoins but for the cryptocurrency market in general.
That is a good sign for several reasons. Firstly, the price increase in the major cryptocurrencies is a strong pull for the rest, and this added to the ongoing trend in altcoins is going to mean exponential growth.
Perhaps Cardano will never be able to surpass Bitcoin in price, but in the medium term, it having a similar evolution to Ethereum is not far-fetched.