Bitcoin
Cardano (ADA) Is Mounting A Challenge To Become The Next Ethereum
Cardano (ADA) is one of the most interesting coins on the market today. The cryptocurrency, which was developed and launched by the Cardano Foundation, has been billed as the next generation Ethereum or the Ethereum killer of late and the implications of this billing have helped to push up the value of the coin dramatically over the last few months.
Towards the end of November, ADA went for $0.02 a piece. Right now, it’s up to $0.47, having dipped from weekend highs of around $0.55. Low to high, that’s a more than 2,600% appreciation.
Cardano Daily Chart
As ever, however, we’ve got to try and figure out whether there’s anything solid behind this run and – in turn – whether it’s worth picking up some coins at current prices in anticipation of further appreciation or whether it’s worth sitting on the sidelines of this one for the time being.
So, let’s do just that.
Bitcoin has some issues. As does Ethereum. These issues are rooted in things like scalability, security and efficiency. And as both get bigger and expand into an increased adoptive landscape, both are going to increasingly suffer from the issues associated with their limitations.
Cardano is an attempt to help the space overcome these issues. It’s headed up by Charles Hoskinson, who was one of the co-founders over at Ethereum, and he’s billing it as a third generation protocol (with bitcoin as the first generation and Ethereum as the second generation).
Basically, the company has taken the concepts that underpin Ethereum and subjected them to review by teams of scientists and engineers in an attempt to develop them into future-proof type concepts. Those that won’t have any problems scaling to millions or billions of users for example. Cardano (the platform) is the outcome of this review and ADA is the first cryptocurrency to be created using the so-called third-generation principles of the Cardano technology.
So why is this one running right now?
Well, it’s all about exposure. Over the weekend, ADA surged in price and – on the back of the surge – found itself in the top ten cryptocurrencies as listed on CoinMarketCap. Take a look at some of the other coins in this select group, however, and there’s one key difference between them and ADA – the latter is trading below $1 a piece.
From an objective valuation perspective, of course, this shouldn’t matter. Right now, however, we are seeing a lot of fresh entrants into the sector, all of which are looking to take advantage of the crypto space bull run. Psychologically, the fact that ADA is available for less than $1 means it becomes instantly attractive to potential investors. Why pick up one-tenth of a bitcoin when you can buy 10,000 ADA?
And can it continue?
While the driver behind the run as outlined above seems shaky, Cardano is in a fortunate position in that it genuinely could be a game changer in this sector. Cryptocurrency is looking for answers to scalability issues and Cardano has those answers. It’s also backed by a team that has proven successful in this space before and, importantly, has a very well established community of developers and followers – all of which are working to push the project from concept to the reality of being the third generation cryptocurrency that it’s billed as having the potential to be.
While we may see some degree of near-term corrective activity, therefore (we pretty much always see a correction after a run like that which we’ve just seen in ADA as the shorter term operators pull profits off the table), we think that such a dip could be a nice opportunity to pick up some cheap coins and – in turn – a discounted exposure to future growth.
We will be updating our subscribers as soon as we know more. For the latest on ADA, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Cardano.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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