Cardano Price Rises More Than 100% In The Past Week, Overtakes Bitcoin Cash To Become The Sixth-Largest Cryptocurrency
Cardano Price Rises More Than 100% In The Past Week, Overtakes Bitcoin Cash To Become The Sixth-Largest Cryptocurrency
January 7, 2021
Cardano Price Rises More Than 100% In The Past Week, Overtakes Bitcoin Cash To Become The Sixth-Largest Cryptocurrency
Cardano Price Rises More Than 100% In The Past Week, Overtakes Bitcoin Cash To Become The Sixth-Largest Cryptocurrency
January 7, 2021

The Cardano (ADA) price rose more than 100% in the past week, as it overtook Bitcoin Cash (BCH) to become the world’s sixth-largest cryptocurrency by market capitalization.

It has been reported that there are two major factors behind ADA’s strong upsurge throughout the past several weeks. First, most major cryptocurrencies saw large rallies after BTC’s uptrend to $36,400 and Cardano has some important network upgrades lined up in 2021.

However, Cardano launched the Shelley mainnet in 2020 by kickstarting the growth of Cardano as a proof-of-stake blockchain protocol. The release of Shelley was a major milestone for Cardano, which led the overall sentiment around ADA to improve throughout 2020.

The report said that functional smart contracts are yet to be deployed on the Cardano blockchain. When smart contracts are LIVE, large-scale decentralized finance (DeFi) protocols and other decentralized applications would be able to launch on top of Cardano.

Also, researchers at Binance Academy said that the release of functional smart contracts is a part of the Goguen update. By considering the significance of this network upgrade, the market sentiment around ADA appears to be improving.

ALSO READ :  ING Bank, AB-InBev, Rolls Royce, And Multi.io Join The Blockchain Education Alliance Launched By MouseBelt

The report further stated:

“As of December 2020, functional smart contracts cannot be deployed on the blockchain platform. As part of the roadmap, this will roll out as a part of the Goguen update. Following Goguen, the Basho era focuses on optimization of scalability and interoperability, and the Voltaire era introduces a treasury system to address governance.”

Likewise, smart contracts on Cardano are different from other blockchains because they allow developers to code self-executing smart contracts based on programmed conditions, as this allows developers and decentralized applications to be more flexible.

Emurgo, a blockchain solutions firm, stated:

“These contracts, when written on the Cardano blockchain, offer the value of giving full visibility to all participants of the contract, while also being extremely secure and self-executing according to the programmed conditions.”

Although Cardano has major upgrades on the horizon, no large upgrades were announced during the period of the rally. Technical analysts and traders anticipated a large ADA rally in late December 2020, as large-cap crypto assets rallied in tandem.

ALSO READ :  Governor of CBOB Confirms Bahamian Digital Dollar Initiative Will Be Introduced Across All Islands In The Second Half Of 2020

Moreover, on December 30, Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said that he believes Cardano would do well in the first quarter of 2021. 

He added:

“One of the platforms that will do well in coming quarter, I think will be #Cardano. Majors are probably running first and this is definitely a major. As long as $0.11 holds (or $0.15), I think we’ll continue towards $0.27 and/or $0.40.”

The report said that a combination of technical factors and the expectations of the release of functional smart contracts in 2021 likely fueled the rally.

Thus, in the near term, analysts say that as long as BTC consolidates above $34,000 and shows technical momentum, large-cap altcoins, like Cardano, are expected to perform strongly.

Source: Cointelegraph


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.