Happy day for Charles Hoskinson and everyone who bet on the ADA token. Because the Cardano network has finally managed to reach number 3 on the crypto charts. The price of ADA, currently around 1.80 euros, has not reached its all-time high – the all-time high is around 1.90 euros in mid-May. But the relative strength of ADA compared to other crypto assets has pushed the market capitalization of the – but relatively controversial – asset to around 58 billion euros and thus third place – ahead of Binance Coin (BNB) and Tether (USDT).
ADA is Cardano’s network token – the proof-of-stake blockchain started by the rather self-confident Hoskinson in 2015. He was previously at Ethereum and wants to do better with Cardano. For years it has been promising full-bodied to offer the faster, cheaper and more environmentally friendly Ethereum alternative. But whether Cardano can really be that is controversial. Mike Novogratz, a very well-known crypto investor, recently said that the blockchain was of no relevance to developers. But instead of naming specific projects, Hoskinson only sent Novogratz a snotty reply (you can read here).
Smart contracts from September 12th
Many Cardano fans are currently eagerly waiting for September 12th, when the Alonzo upgrade is due. Because then smart contracts should finally be possible on the blockchain platform – and they are a prerequisite for decentralized apps. Developers who want to rely on Cardano instead of Ethereum, Polkadot or Solana still have to wait for this essential upgrade.
Cardano: That’s behind the new star in the crypto sky
In the race against Ethereum
Since Cardano has not announced any major projects or updates in the past few days and weeks, given the steep price increase, it can be assumed that ADA is now increasingly attracting the interest of investors who are waiting for a big push from the smart contracts. According to the analysts of the crypto asset manager CoinShares, an above-average amount of institutional money flowed into the Ethereum rival, which could have influenced the price.
The larger picture currently shows that it is precisely the Ethereum competitors who are in the favor of crypto investors. As reported, Solana (SOL) has also had a steep career in the last few weeks and recently ranked in the top 10 of the crypto charts by market capitalization. There you can also find polkadot, which is 12 percent plus compared to the previous week.
Ethereum itself doesn’t really hurt. Ether continues to trade at more than 2,500 euros, and Vitalik Buterin and his gang are keen to make the switch to Proof of Stake this year. Then Cardano, Polkadot or Solana will first have to swallow, because they will then lose their trump card (less energy consumption, low fees, much more and faster transactions) compared to Ethereum.
Cardano and Polkadot benefit from the CO2 problem of bitcoins