Investing.com – Hope for smart contract integration soon is driving the further up. For the first time in its history, it passed the $ 2.80 mark in Asia on Monday morning. At $ 2.847, the third-generation cryptocurrency hit a new all-time high, according to Investing.com data. At around 6:51 a.m. CET, Cardano was trading at $ 2.788, up around 10.6 percent.
With a market capitalization of almost 90 billion dollars, Cardano ranks third among the most important cryptocurrencies in the world. The gap to the fourth-placed Binance Coin ($ 80.6 billion) is now $ 9 billion. There is still a long way to go to the market value of Bitcoin ($ 945 billion) and Ethereum ($ 391 billion), even if ADA has noticeably caught up since the beginning of the year.
While the so-called dominance rate was 0.80 percent at the beginning of the year, it is now 4.22 percent according to TradingView data – and the trend is rising. Bitcoin’s market dominance was over 70 percent at the beginning of the year, but has steadily declined since then, reaching its low point of around 40 percent in mid-May. The BTC share is currently 44.46 percent of the total crypto market. The main reason for the decline was the rise of competitor Ethereum.
Cardano in the wake of the Bitcoin rally
The positive impetus for the continued strong price trend came from Bitcoin: on Monday morning in Asia and had climbed new interim highs in overall high-volume trading, after on Friday that the company had received approval from the board of directors to transfer cryptocurrencies worth over 500 million dollars to buy.
In addition, the largest US trading platform (NASDAQ 🙂 for cryptocurrency wants to invest 10 percent of all profits in cryptocurrencies from now on. Armstrong believes that as the crypto economy matures, that percentage “will continue to increase over time.”
The $ 50,000 mark in Bitcoin is considered the last major hurdle before new records. If a sustainable breakthrough succeeds, the way to new all-time highs would be open, according to some analysts.
Vijay Ayyar, director of business development at the Luno cryptocurrency exchange, told CNBC that there were many purchases between $ 29,000 and $ 30,000 when Bitcoin traded at about 50 percent discount to April’s all-time high.
“Many big players have taken advantage of these prices,” said Ayyar, adding that Bitcoin could once again “test the all-time highs”.
Bitcoin reached a record high of over $ 64,000 in April, but lost a lot of its value in June and July and even sank below $ 30,000 in the meantime. One of the main reasons for this was the increasing regulatory fury of the Chinese authorities, which resulted in miners in China having to cease operations and move their equipment out of the country.
The rising Bitcoin quotes also give the Altcoins such as Cardano and Tailwind.
Crypto analyst Benjamin Cowen, who now has almost 500,000 followers on YouTube, said in a recent video:
“To understand what ADA is doing, we have to look at what Bitcoin is doing. To get a better understanding of what Bitcoin is doing, we have to look at the development of the US dollar. And the only reason why should be a little careful is that he’s working on an outbreak … “
The US dollar has risen sharply in recent weeks. The main reason for this was the prospect of an end to the ultra-loose monetary policy of the Federal Reserve, which indicated in its published Wednesday that it would soon cut back its asset purchases if the economy recovers as expected. There are new indications of a possible -Tapering this week from, which starts on Thursday. Of particular interest, however, is the speech on Friday at 4 p.m. Central European time.
All in all, “the path of least resistance for ADA is directed upwards,” said Cowen. This can be attributed to the hype surrounding smart contract integration at Cardano. “That’s number one. That’s where all the hype is based, in my opinion. Second, Bitcoin has risen above its 20-week line.”
Hoskinson: Smart Contracts a “foregone conclusion”!
The Cardano community is eagerly awaiting September 12, 2021. On that day, it should be ripe for wider adoption.
As it was said in a tweet by the Cardano developers.
Cardano founder Charles Hoskinson is also full of confidence and brushes aside concerns in the crypto community that the implementation of key functions such as smart contracts could be delayed.
In a recent video, he said that smart contract integration was “a foregone conclusion” as of September 12th. “Everything looks great”.
The smart contract functionality allows Cardano to integrate more applications, including so-called decentralized financial platforms (DeFi), which enable automated lending and trading in cryptocurrencies. With this improvement alone, the network would be in a better position to challenge the big opponent Ethereum, the current top dog among blockchains with smart contract functionality.