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Getting Acquainted With Cardano (ADA) And Understanding Why It Is In The Top 10
There is a new heavy hitter in the cryptocurrency arena and it is known as Cardano or ADA that has just gotten into the top ten list of cryptocurrencies that are ranked based on market capitalization.
The altcoin’s website describes Cardano as a cryptocurrency as well as a platform that will allow governments, organizations, and individuals from all over the world to run financial applications efficiently and in a secure manner. The website further adds that the platform is being developed in layers so as to offer ease of maintenance as well as flexibility. The idea is that ADA will be operated on a settlement layer once it is complete and that the platform will also feature a separate computing layer through which smart contracts will be handled.
The Cardano platform is the first blockchain based on a scientific philosophy and this could be one of the factors that have contributed to its growing popularity. The ADA cryptocurrency was ranked 9th place in the top ten list at the beginning of December. However, it is currently sitting at 6th place thanks to its recent surge with its price hitting a new all-time high at $0.57 on Sunday. The price has since then retreated to sub $0.5 prices.
It looks like the digital currency has gotten the attention of the crypto community following the recent surge. Recent publications suggest that ADA is focused on accessibility and scalability and that its primary objective is mass adoption. The reveal that its technology will also focus on smart contracts is quite attractive for the market. This is a coin that is not well known in the market but it seems to have gotten off to a good start. The surge in Bitcoin about a week ago also led to a rise in the value of ADA by about 300 percent within the same period of time. However, it has not gotten to that point yet as most of those features including the smart contract features are still under development.
The altcoin might have managed to make its way to the top ten, but it has also aroused a lot of criticism. There is speculation that the surging prices might be the result of a price pump to artificially inflate ADA’s market cap. As stated, this is just speculation and it is thus not clear whether the performance of the cryptocurrency is genuine or not. If the speculators are correct, then Cardano might be off the top ten list as fast as it jumped on. It remains to be seen whether the altcoin will prove itself to be one of the greats, earning a spot among the likes of genuine cryptocurrency giants such as Bitcoin and Ethereum.
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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 Sam Churchill via Flickr