Cardano’s ADA Token Has Surged In The Past Week: Here Is Why It’s Rising
Cardano’s ADA token has surged in the past week, even as the likes of Bitcoin and Ether traded sideways, amid some promising developments on its blockchain.
ADA has risen 40% in the past seven days, according to pricing from CoinGecko, while Bitcoin, Ether, Solana and XRP have advanced less than 5%. That comes as data from Messari show Cardano’s 24-hour transaction volume at $5.31 billion, compared with Ethereum’s $5.59 billion. But Cardano’s gas fees — payments made by users to compensate for the computing energy required to process transactions — were around $75,400 compared with the latter’s $44 million over that period.
“One could quite easily argue that the NFT market has found a gas-light way to transact, and that is the Cardano blockchain,” said Hayden Hughes, chief executive officer of Alpha Impact, a social-media platform for crypto traders. “Many have argued that it’s only a matter of time before gas fees and congestion clog up the Cardano blockchain, leading to high gas fees, but despite the $5.31 billion in daily activity we have not yet seen this.”
Cardano has had its ups and downs in recent months. For a time it was the third-biggest cryptocurrency, topped by only Bitcoin and Ether, andared $100 billion in market value amid optimism about the addition of smart contract capabilities. However, it dropped after that and is about 50% below its early-September record, even with the recent rally. While Cardano has an enthusiastic fan base, it’s also got detractors. Mike Novogratz, the CEO of Galaxy Digital, posted on Twitter in August that “I spoke to twenty of the smartest people I know in the space, and zero of them saw Cardano having traction with devs.”
OTA (MIOTA) has been one of the worst hit cryptocurrencies of this year, after CoinMarketCap decided to exclude Korean exchanges from its prices. The cryptocurrency market’s recovery is an initiative that we must all take and it starts by us knowing what project to invest in and why, and not just invest blindly. This article will be covering Cardano (ADA), a coin which is currently ranked 9th at CoinMarketCap.
Cardano [ADA] is a product for which real world use cases have not been fully realized yet, but given the team behind the project, you can expect it do so in future. In my opinion, they are still in their early stages as they have only just begun funding themselves via the ICO route – even though their idea dates back to 2015.
Their 2017 ICO raised approximately $63 million which was a complete sell out in terms of participation size, considering it raised this amount without any pre-sale event. The foundation has not broken down how much was sold during the crowd sale and how much was sold via private placement to strategic buyers who knew about the project before hand – who are now sitting on triple digit gains.
Why is Cardano’s price rising?
Cardano’s price has been rising with positive news coming from them almost daily which is promoting more investors into the ADA token. I am calling it “ADA” because that is what Charles Hoskinson prefers, but you can also buy it as “ELEC” at Bittrex.
Their Cardano testnet called “K-EVM” was launched on the 28th of June which is a huge milestone for the project. We all know that Ethereum was not production ready before it launched back in mid 2015 and this puts ADA/USD on track to do many times better than ETH has done over the years, even though ADA/USD is still at its infancy stage. The price is also rising due to Bittrex opening up more markets for ADA/BTC and ADA/ETH, so Japan getting involved now makes sense as they are an evolved market with institutionalized investments via their FSA (Financial Services Agency).