ADA Token on Cardano Blockchain Becomes Third Largest Cryptocurrency.
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 take advantage of the rise of decentralized finance.
With the so-called ADA Cryptocurrency jumping around 50 percent over the past week alone, optimism is mounting that new technology enhancements will enable smart contracts on Cardano for its announced September 12 target. That will allow its network to offer lucrative services like Defi, where Ethereum currently dominates. The ADA price in India stood at Rs. 163, while the Ethereum price in India stood at Rs. 2.48 lakhs at 11 am IST on August 17.
In a rally greeted with skepticism by some big names in the industry, the ADA token now has a market value of more than $ 69 billion (approximately Rs. 5,12,360 crore), larger than all rivals except Bitcoin and Ether, according to tracker CoinGecko. The price of Bitcoin in India stood at Rs. 36 lakhs at 11 am IST on August 17.
“Cardano fans have been waiting, some impatiently, for what seems like forever for some smart contract news,” said Antoni Trenchev, managing partner and co-founder of cryptocurrency lender Nexo. “Cardano is fighting with no. 2 crypto Ethereum to be the preeminent blockchain offering smart contracts. ”
The more than 1,400 percent jump in ADA over the past year outpaces the returns of both Bitcoin and Ether.
The virtual currency has risen despite skepticism about its usefulness from some prominent cryptocurrency commentators. For example, Galaxy Digital LP CEO Mike Novogratz posted on Twitter Sunday that “I spoke to twenty of the smartest people I know in space, and none of them saw Cardano having traction” with developers.
“Most people outside of cryptocurrencies haven’t even heard of Cardano, but here it is with a market capitalization” that tops many of the components of the S&P 500 index, Trenchev said.
Decentralized finance, or Defi, transfers financial functions to digital ledgers, allowing people to do things like lend or borrow funds and earn interest on a savings account without the need for traditional intermediaries like banks. Its growing popularity is part of a broader trend of increased blockchain use.
Recent rallies in Bitcoin, Ether, ADA and other tokens helped the cryptocurrency market surpass $ 2 trillion (roughly Rs. 1,48,50,910 crores) in value over the weekend for the first time since May when the famous volatile sector succumbed to defeat.