A little-known digital token tied to the Cardano blockchain has just become the world’s third-largest virtual currency as network developers look to capitalize on the boom in decentralized finance.
With the so-called ADA cryptocurrency jumping about 50 percent just last week, optimism is growing that new tech enhancements will enable smart contracts in Cardano up to its announced September 12th target. This will allow your network to offer lucrative services like DeFi, where Ethereum currently dominates. The ADA price in India was at Rs. 163 while the price of Ethereum in India was at Rs. 2.48 lakhs from 11am IST on August 17th.
In a rally faced with skepticism by some big names in the industry, the ADA token now has a market value of over $69 billion (approximately Rs. 5,12,360 crores) – higher than all rivals except Bitcoin and Ether, according to the CoinGecko tracker. Bitcoin price in India was at Rs. 36 lakhs from 11am IST on August 17th.
“Cardano aficionados have been waiting – some impatiently – for what seems like an eternity for some news about smart contracts,” said Antoni Trenchev, managing partner and co-founder of the cryptocurrency Nexo. “Cardano is fighting with the no. 2 crypto Ethereum to be the preeminent blockchain offering smart contracts. ”
The jump of more than 1,400% in the ADA over the past year exceeds the returns of Bitcoin and Ether.
Virtual currency rose despite skepticism about its usefulness by some prominent cryptocurrency commentators. For example, Galaxy Digital LP CEO Mike Novogratz posted on Twitter on Sunday that “I spoke to twenty of the smartest people I know in space, and none of them saw Cardano getting traction” with the developers.
“Most people outside of cryptography have never heard of Cardano – but here it is with a market capitalization” that trumps many constituents of the S&P 500 index, Trenchev said.
Decentralized Finance – or DeFi – carry financial functions in digital books, allowing people to do things like borrow or borrow funds and earn interest in a savings account without the need for traditional intermediaries such as banks. Its growing popularity is part of a broader trend of increasing blockchain use.
Recent rallies in Bitcoin, Ether, ADA and other tokens helped the cryptocurrency market surpass $2 trillion (about Rs. 1,48,50,910 crores) in value over the weekend for the first time since May, when the industry famous volatile succumbed to defeat.
© 2021 Bloomberg LP