There has been new flying around concerning the upsurge in the price of Cardano. According to this news, the price of Cardano had made a 150% return in just a month after the general dip some few months back. Recall that there was a 10% increase in Cardano’s trading volume on the 20th of August, which triggered the 150% on price return. The big question now is if Cardano is the third-largest cryptocurrency.
One of the important factors that you should note is that, when it comes to cryptocurrency ranking, the price of the coin has little or no effect on the coin’s ranking. Instead, its volume by market capitalization is considered because this explains how much leverage the coin has on the general crypto community.
In this case, Cardano is now rated as the third-largest cryptocurrency after Bitcoin and ethereum. Also, note that the Cardano network is such that it follows almost the same pattern as the ethereum network since the founder of Cardano was also an integral developer in the ethereum foundation.
Why is ADA the third-largest cryptocurrency?
Just about a few days to the end of August, Cardano surpassed other alt-coins to become the third-largest cryptocurrency after defiling a major price crash warning. The ADA coin surpassed the $2.56 point on the 20th of August, marking it a total 155.5% price surge that started on the 20th of August, just a month interval. This pump was achieved even after a renowned crypto analyst predicted the head to shoulder bearish movement.
As a result of this upsurge, several analysts and investors have claimed the Cardano network would enjoy newer technological advancements, which will enable the Cardano network to serve its users more appropriately.
Now that the price of ADA has enjoyed an almost 50% price surge, the upgrade coming the 12th of September is expected to compete with Ethereum on DeFi, expanding Cardano’s reach for better service to its users.
What’s the latest upgrade? ADA and DeFi
If you are conversant with the Cardano network, then you must have come across the “Alonzo” upgrade coming up on the 12th of September. Before this upgrade, ADA investors and users are steadily and continually driving the price of ADA higher.
The upgrade to Alonzo will see Cardano establish itself as a smart contract network positioning an active interaction between Cardano and the decentralized financial space. This is set to put ethereum on its toes as a new set of user adoption is targeted at flooding the Cardano blockchain.
Some of the reasons why ADA has a strong user adoption is because it’s first regarded as the “Ethereum killer,” and its price is ridiculously pocket-friendly. These two factors make Cardano one of the most sought-after coins for investors and new traders.
With Cardano in the decentralized financial sector, ethereum needs to take on more upgrades. The domination of ethereum in the DeFi space might suffer reduction now that Cardano will be able to execute smart contracts and execute automated agreements between buyers and sellers.
Currently, no promising blockchains seem to stand as a threat to Cardano asides from Solana. However, the Solana marketplace has just $20 billion market capitalization, which is about four times lesser than Cardano’s.
What are smart contracts?
Smart contracts are also regarded as blockchain contracts. They are different from the regular centralized contracts because apart from being decentralized, their method of conformity between the two parties involved is one of the key peculiarities of smart contracts.
So, in a nutshell, smart contracts are those contracts that run on self-execution via a decentralized application. Hence, once a smart contract execution code has been written, it’s almost impossible to change, reverse or tamper with.
One of the fun facts about smart contracts is that it is self-executing and the records are preserved on the blockchain. Blockchain is such that every transaction is kept and secured to keep the evidence of the transaction as intact as possible. The contract’s acceptance and discussions are such that they are made available and accessible to the public for transparency to enhance credibility and eliminate all forms of doubts whatsoever.
Cardano is not just the third-largest cryptocurrency; it’s going to be the most used on Defi if ethereum doesn’t work on its PoS consensus before the year runs out. With Cardano’s Alonzo’s upgrade, the price of Cardano is prepared to surge even more upwards and compete with Ethereum on more user adoption on DeFi. Maybe Cardano is the ethereum killer after all.