A little-known digital token connected to the Cardano blockchain has just become the third largest virtual currency in the world as network developers try to ride the boom in decentralized finance.
Since the so-called ADA cryptocurrency has risen by around 50 percent in the past week alone, optimism is increasing that new technological improvements will enable smart contracts on Cardano until the announced goal of September 12th. This will allow its network to offer lucrative services like DeFi, where Ethereum is currently dominant. The ADA price in India was Rs. 163 while the Ethereum price in India was Rs. 2.48 lakhs from 11 a.m. IST on August 17th.
In a rally that was met with skepticism from some big industry names, the ADA token now has a market value of more than $ 69 billion (roughly Rs.5.12.360 billion) – larger than any competitor except Bitcoin and Ether, according to tracker CoinGecko . Bitcoin price in India was Rs. 36 lakhs as of 11 a.m. IST on August 17th.
“Cardano lovers have been waiting – some impatiently – for what feels like an eternity for news about smart contracts,” said Antoni Trenchev, managing partner and co-founder of the crypto lender Nexo. “Cardano is fighting with No. 2 Crypto Ethereum for the outstanding blockchain that offers smart contracts.”
The ADA’s increase of more than 1,400 percent last year outperforms the returns on Bitcoin and Ether.
The virtual coin has risen despite the skepticism of some prominent commentators about cryptocurrencies. For example, Mike Novogratz, Chief Executive Officer of Galaxy Digital LP, posted on Twitter on Sunday, “I’ve spoken to twenty of the brightest people I know in the industry, and none of them saw Cardano’s pulling power” with Developers.
“Most people outside of crypto have never heard of Cardano – but here it is with a market cap,” which tops many of the S&P 500 index constituents, Trenchev said.
Decentralized finance – or DeFi – transfers finance functions to digital ledgers so that people can borrow or borrow money, for example, and earn interest in a savings-like account without the need for traditional intermediaries such as banks. Its growing popularity is part of a broader trend of increasing blockchain usage.
The recent rallies in Bitcoin, Ether, ADA and other tokens brought the cryptocurrency market to over $ 2 trillion (about Rs.148.50.910 billion) over the weekend for the first time since May when the famously volatile sector succumbed.
© 2021 Bloomberg LP
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