While the broader crypto market took a breather, Cardano’s ada extended an impressive one-week rally early Friday, increasing 10% in a matter of hours as trading volume in the token, which the Last week it became the world’s third-largest cryptocurrency, surging amid anticipation of an upcoming software update that could help the token compete with Ethereum.
Cardano’s ada jumped more than 14% to a price of $ 2.49 as of 12:52 a.m. EDT on Friday, its highest point since a record $ 2.46 on May 16, according to crypto data website CoinMarketCap, lifting its market capitalization above $ 75 billion.
Reflecting investor fervor on Thursday, as of 11:00 p.m. EDT, more than $ 8 billion worth of ada tokens were traded in 24 hours, the highest display in a day since a price surge in May. . The token has been on a steady rise this month, up 85% when Cardano founder Charles Hoskinson teased a network update in September, called Alonzo, that will allow Cardano’s blockchain to process smart contracts. , auto-execution deals between buyers and sellers, a feature that has allowed Ethereum to dominate the burgeoning $ 100 billion decentralized financial industry.
Prospects for a software update have also propelled Ethereum to three-month highs in recent weeks, but Cardano’s newer network, which is still lagging behind in adoption, has drawn skeptics like the former fund manager of billionaire coverage Mike Novogratz.
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In a tweet after ada became the world’s third-largest cryptocurrency this month, Novogratz, a staunch bitcoin bull, said that the token’s rise was “a mystery” to him and suggested his platform was struggling to win. ground among software developers who create the necessary programs for the adoption of a cryptocurrency.
Hoskinson, who also co-founded Ethereum, struck back at the financier, responding to a tweet touting that Cardano requires less energy than Ethereum to process transactions and poking fun at Novogratz’s track record in the traditional banking space.
Cardano’s ada soared in May after billionaire Elon Musk became bitter on bitcoin and said he would no longer accept cryptocurrency due to the strong environmental downside of the huge amounts of electricity used to “mine” new coins. The cryptocurrency market crashed and has yet to fully recover, but ada rose to new highs as investors flocked to more environmentally sustainable tokens. Hoskinson has claimed that Cardano uses only 6 gigawatt hours of energy per year, not even 0.01% of the 115.85 terawatt hours that bitcoin is estimated to use. The token tumbled nearly 60% as the broader market crashed this summer, but has since started to outperform bitcoin and ether.
Ada has soared 1,300% this year alone, making it the top-five performing cryptocurrency compared to returns of 1,030% for binance coin, 330% for ether, and 59% for bitcoin. However, the token is also very susceptible to massive volatility from the broader crypto market. Ada plummeted nearly 90% in less than two months in early 2018 as regulatory crackdowns on cryptocurrencies ushered in a years-long bear market for the nascent industry.
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Amid Cardano’s overnight rally, the overall crypto market was up less than 4% and floated around a total value of $ 2 trillion. The market soared above $ 2.5 trillion in May, but plunged amid concerns about regulations banning cryptocurrency mining in China.