This Monday the cryptocurrency market recovered $ 2 trillion in capitalization for the first time in three months. After a period below this level by the regulatory scrutiny of different countriesthat is, the sector recovers its momentum in the face of the changes applied. In the new ‘rally’, bitcoin, the most used cryptocurrency, stands out again with a value close to $ 50,000, a level that it already reached in April before its peak. However, in this advance a new winner emerges, the ‘crypto’ Cardano, which in the last seven days achieves a revaluation close to 50%, well above that of bitcoin.
The Cardano was trading at $ 2.16 at the beginning of the week, remaining above the $ 2 mark which lost in May dragged down by the cryptocurrency crash. Despite the fact that on the last day there was hardly any movement, from its lows in the last three months it has shot up more than 104%. This increase accelerated from last week, with a revaluation of 46%. Thanks to this, since the beginning of the year the increase is over 1,000%.
In addition to its value, this virtual currency is gaining ground in the crypto market, already representing 3.42% of the total capitalization. Their combined value is close to $ 68 billion. And, although it is far from the 800,000 million of the capitalization of bitcoin, it aims to become the third cryptocurrency by value. Its rapid growth threatens Binance Coin, which until now occupied the third position in the list of these virtual currencies, but whose difference in value with respect to the Cardano is less than 4,000 million dollars. Cardano has been rising in this ranking, and is ahead of prominent currencies such as Tether, XRP or the DogeCoin, Elon Musk’s coin.
The market rage for this currency comes in part from its good prospects tocapitalizing on the rise of decentralized finance. This is how the trend of blockchain technology is defined, which allows transferring financial functions to digital ledgers, which enables people to carry out activities such as lending or borrowing money and earning interest on an account without the need for intermediaries traditional like banks.
Cardano is a blockchain platform, whose cryptocurrency is called ADA, designed to ensure that owners can participate in the operation of the network. Thus, the owners of the ‘tokens’ of this currency, ADA, have the ability to vote on any proposed change in the software, which allows the development of technological innovations. In this sense, one of its main strengths is the possibility of develop smart contracts, aspiring to become the prominent blockchain to offer these services.
Currently there are about 7,000 cryptocurrencies. All of them are based on the blockchain, the chain of blocks that eliminates intermediation, but the technology used to develop that chain may be different. The Ethereum, a public and decentralized network, is the dominant technology so far, thanks to its open code and greater flexibility compared to the Bitcoin blockchain. Although Cardano’s capitalization is still far from that of Ethereum, which stands at $ 377 billion, its rise threatens the dominance of the second most important cryptocurrency. Thus, as Cardano gains ground in the cryptocurrency market stands as a new competitor.
Its origin dates back to 2015, when Charles Hoskinson, also a co-founder of Ethereum, promoted this project, but starting from a network from scratch and completely independent. Its network is based from the beginning on the ‘proof of stake’ system (PoS, for its acronym in English), to which ether has recently been added. This protocol consumes less resources than the proof-of-work algorithm that Bitcoin relies on.