ADA by Cardano has crossed the $3 mark for the first time. This impressive feat can be attributed to the excitement surrounding the developers, who have launched an implementation of major upgrades. These are to enable the creation of smart contracts on the network.
What is the status of Cardano?
This comparatively lesser-known cryptocurrency is one of the latest players to make the leap to the big leagues. A few weeks ago, Cardano beat Binance Coin to become the third largest cryptocurrency in the world by market cap, after Bitcoin and Ethereum.
Its total value may be a fraction of the value of the first two virtual coins, but Cardano’s cryptocurrency ADA has doubled in a month. As its strength continues to grow, can ADA beat Ethereum to become the second largest cryptocurrency?
Why Cardano ADA is suddenly on the rise
According to the market statistics, ADA is up 7.8% and has reached an all-time high of $3.09. This digital token has had a good run in recent weeks. Investors are looking forward to the network upgrades codenamed Alonzo.
The recent jump on September 1 and 2 coincided with the developers announcing that the Alonzo upgrades have launched on a test network. However, the full launch is scheduled for later in September.
The network upgrade will come with smart contracts capability. They will allow investors to enter into financial agreements without a centralized party. This will make the Cardano blockchain more attractive to users and new investors.
With this move, Cardano is positioning itself as a competitor to Ethereum, as ETH also offers smart contracts on its blockchain.
How does Cardano differ from Bitcoin and Ethereum?
Bitcoin and Ethereum are still by far the two most important cryptocurrencies on the market. However, ADA is growing rapidly and cannot be ignored. Here’s how Cardano differs from the two giants:
- ADA transactions are verified through proof of stake and ownership, which uses less energy. The others, on the other hand, use proof of work, which rewards effort.
- The supply of ADA and Bitcoins is limited, unlike Ether.
- Ethereum has smart contracts that are constantly being used to increase interest from institutional investors. In the case of Cardano, this program will not start until September.
The ADA price has risen over 130% in the last 30 days. Speculators expect it to rise further in the short term. Because cryptocurrencies are volatile, every potential buyer and seller needs to do further analysis to ensure they can safely achieve their short- and long-term goals.