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Cardano soars to historic highs can it overtake Bitcoin and Ethereum? | Investing.com

This article was written exclusively for Investing.com

Cryptocurrencies have rallied since they hit their lowest levels at the end of June. The and have hit a series of higher highs over the past six weeks. Each of them has now returned to the levels seen in May.

The market capitalization of the asset class has fallen from over $ 2.4 trillion to less than $ 1.4 trillion, with ethereum losing more than half of their value from the 2021 high. , as of August 24, the value of all 11,382 cryptocurrencies has fallen back to the level of $ 2,077 billion.

, the top three crypto, hit the $ 2.40 level in mid-May. After falling to a low of around $ 1.12 in July, the price exploded higher, eclipsing the mid-May high of the past week.

The rise of Cardano could be a sign of things to come for the cryptocurrency asset class.

Cardano: third largest cryptocurrency

Cardano is a public blockchain platform. It is open-source and decentralized, with a consensus obtained by proof of stake. Cardano facilitates peer-to-peer transactions with its internal cryptocurrency, ADA. In 2015, Charles Hoskinson, co-founder of, founded Cardano.

Cardano’s website states that these are:

“A blockchain platform for change makers, innovators and visionaries, with the tools and technologies to create opportunity for the many, as well as the few, and to effect positive global change.”

In early September 2021, Cardano was the third top cryptocurrency in the rankings.

Top 5 Crytos as of September 2

Chart: Investing.com

As the chart shows, at the $ 3.0451 per token level, ADA has a market cap of over $ 98.90 billion, third behind Bitcoin (BTC) and Ethereum (ETH), but ahead of fourth. and fifth cryptocurrency, Binance Coin (BNB) and Tether (USDT), the stablecoin.

Bitcoin and Ethereum remain below all-time highs in April and May.

At the end of August, bitcoin futures were trading at the $ 47,210 level.

BTC / USD Weekly

CQG

As the chart points out, bitcoin was around 27.9% below its all-time high in mid-April 2021 on August 31.

CQG

At the level of $ 3,415 on August 31, Ethereum was about 22.5% below its record high in May 2021.

Meanwhile, Cardano crypto rallied as Bitcoin and Ethereum recovered from late June lows, hitting new highs.

ADA hits new record high

On Thursday, August 26, ADA hit a new all-time high at $ 2.9442 per token. As of Thursday, September 2, it is even higher, at $ 3.0123 at time of publication.

ADA / USD Weekly

The graph shows the recent rise of ADA. In May, when Ethereum broke above the $ 4,400 level, the ADA hit $ 2.3091. The price broke through this level on August 18 and hit a new high in early September.

ADA tokens were named after Augusta “Ada” King, or Ada Lovelace, a 19th-century British countess known for her work on a theoretical computing engine. She was the daughter of the poet Lord Byron and was probably the first computer programmer.

ADA’s Proof of Stake randomly assigns parts to users, who place parts as collateral. While Cardano uses proof of stake, Bitcoin and Ethereum use proof of work, requiring a global computer network running at the same time when a transaction takes place. Proof of Stake is a greener alternative to Proof of Work because it requires much less computing power. Cardano has a definite advantage over Bitcoin and Ethereum with environmentalists.

Rise in Cardano (ADA) could be a sign for the rest of cryptocurrencies

At the end of August, 11,521 cryptocurrency tokens were traded in the asset class, with a total market cap of $ 2.1 trillion. The top three, Bitcoin, Ethereum and Cardano, had a combined value of $ 1,381 billion, or more than 65.7% of the entire asset class. Ethereum is more than four times as valuable as ADA, and the value of Bitcoin is about ten times as high.

ADA’s rise to third place is a sign that altcoins are gaining traction in the cryptocurrency landscape.

A sign of this strength, and possibly to support the rise of Cardano, Coti (COTI), a payments-centric altcoin backed by Cardano, went live on Coinbase Global Inc (NASDAQ :) at the end of the month. August. COTI rose from 29 cents to 45 cents, an increase of 55%, although it has fallen a bit since. COTI was the 161st cryptocurrency at the end of August, but at the time of publication it has slipped to 190. At 34.2 cents, the crypto has a market cap of nearly $ 300.88 million .

Alonzo’s upgrade pushed ADA to a new high

Cardano’s current price appreciation came after the announcement of a major upgrade – called a hard fork – called Alonzo, which is slated to launch on September 12. Alonzo will bring smart contracts to the blockchain.

ADA has also jumped, as the Japanese stock exchange will list it. Japan’s regulatory environment is one of the strictest in the world to enter the market. The Japanese stock exchange allows trading in bitcoin, ethereum and litecoin. ADA joined this elite class of cryptocurrencies, pushing the market cap to third place in August 2021.

Some crypto analysts believe that Cardano has the potential to leave Bitcoin and Ethereum in the dust for the next several years. The possibility of Bitcoin and Ethereum-like returns from a token trading below $ 3 could attract a lot of speculative interest.

As with all members of this asset class, only invest what you are prepared to lose as the high level of volatility could cause sharp price swings. ADA tokens have the critical mass and liquidity for traders. However, the potential for large price variations means that the risks are always a function of the potential for rewards.

Keep an eye out for ADA as the Cardano protocol is getting a lot of attention.

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