Cardano overtakes Binance Coin to become the third largest cryptocurrency — here’s what’s driving the rally.
Cardano overtakes Binance Coin to become the third largest
cryptocurrency — here’s what’s driving the rally.
Cardano's
ADA jumped more than 20% in 24 hours, its highest point since a record of $2.47
on May 16. It is now the third most valuable
The
rally in the crypto asset's value is being attributed to an update that will
extend the smart contracting mechanism to the blockchain.
It’s
often called “ethereum killer” because of its potential of taking on the
mightier crypto with an improved smart contracting system.
§ The new update will open
Cardano
has hit a new all-time high, rising over 20%
in the last 24 hours, with its price peaking at $2.55. The cryptocurrency that
is powering Charles Hoskinson’s public blockchain has regained the spot of
being the third-largest crypto with a whopping $80 billion market cap.
The Cardano blockchain's cryptocurrency is
called ADA, and the system is often touted to be a direct Ethereum and Solana competitor.
It has surpassed
The
rally in the crypto asset's value is attributed to the Alonzo Purple public
test net launch. It's the final test phase of the project, which will end in
the network finally getting smart contracts capability. The entire crypto
market has witnessed a bullish rally in the previous week, pushing its market
cap to more than $2 trillion. While Bitcoin and
Ethereum continue to lead the race, new altcoins are constantly challenging the
norm. The price dips from the last two months have not seemed to affect the
digital asset's price too much, as it's now back well over $2. It reached an
all-time high previously in May, remaining just a little shy of $2.5.
What’s
driving the Cardano rally?
The upcoming ‘Alonzo’ upgrade is driving the bullish sentiment. The development
team announced the
launch of the public test net on Twitter. Incorporating smart contracts is
critical for the blockchain as it introduces a range of new capabilities such
as DeFi (decentralised
finance), NFT (non-fungible
token), automated lending, and more.
The new update is likely to land on September 12, and investors are confident
that it'll be a game-changer. Often called the "ethereum killer,"
it's four times the size of Solana in terms of market cap but has little
practical use-case right now.
On the flip side, Japanese authorities have permitted it
to float on exchanges in the country. While crypto regulations worldwide are at
a nascent stage, Japan's decision is also cited as an indirect mark of due
diligence and compliance.
But,
what are smart contracts?
Smart or blockchain contracts are unique in the way that they ensure compliance
between the two parties. Immutability is one of the most remarkable features of
a self-executing contract. It means it is impossible to reverse, alter, or
tamper the codes, rules, and even the transactions once programmed on the
blockchain.
Like traditional contracts, smart contracts are agreements between two or more
parties, avoiding the need for vigilance or enforcement from third parties.
It's self-executing and impossible to reverse, alter, or tamper with the code,
internal regulations, and transactions. The blockchain network maintains a
transparent, secure, and immutable transaction ledger that ensures proof of
ownership is also established and transferable. Contract negotiation and
application become far more accessible, and all the edit history of the
transaction is also transparently available.
Furthermore, it can also be deployed for DAOs (decentralised
autonomous organisations), which require communities to be bound to specific
rules coded into blockchain contracts combined with governance mechanisms.
Ethereum is infamous for its smart contracting ability and was created by
Vitalik Buterin and four other co-founders in 2013. Polkadot, EOS, Binance
Smart Chain, Solana, and many others still compete for the throne, but none of
them can defeat the industry's first mover.
Comments
Post a Comment