Cardano becomes the sixth-largest Cryptocurrency with a 27% Surge
The Cryptocurrency market is experiencing a small relief rally. Cardano, one of the most environmentally sustainable blockchain platforms, is leading the bounce with a 27% price surge, overtaking Ripple to become the sixth-largest cryptocurrency in the world by market capitalization. At the time of writing, Cardano is outperforming the majority of the cryptocurrency market.
What is Cardano?
Cardano is one of the largest digital currencies by market capitalization. It’s intended to be a next-gen version of the Ethereum idea — with a flexible, sustainable, and scalable blockchain platform for running smart contracts, that will allow the development of a wide range of decentralized finance apps including new crypto tokens, games, and more.
Just like the Ethereum blockchain’s native cryptocurrency is ETH, the Cardano blockchain’s native cryptocurrency is ADA — which can be traded on exchanges like Kraken Digital asset exchange, Coinbase Exchange and Binance Exchange. As of now, ADA can be used to store value (perhaps as part of your investment portfolio), to send and receive payments, and for staking and paying transaction fees on the Cardano network.
Cardano’s mission is to become completely decentralized through the implementation of community-driven governance and an automated treasury system to fund the future of the network.
Cardano in 2022
Cardano’s smart contract blockchain’s ADA token has rallied 27% on the day amid a market-wide bounce, surpassing Ripple to reclaim its place as the sixth-largest Cryptocurrency by market capitalization. The rally comes right before Cardano’s highly-anticipated Vasil hardfork upgrade; the blockchain platform is slated to see a mainnet launch in Jun. 29. Upon full release, the Vasil upgrade will represent the network’s most crucial overhaul since the Alonzo hardfork in September 2021.
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While Alonzo upgrade in 2021 gave Cardano smart contracting capabilities, unlocking a range of new Decentralized Finance (DeFi) use cases, the upcoming Vasil hardfork will improve the scalability and usability of the network. Specifically, Vasil will include four Cardano Improvement Proposals, CIP31, CIP32, CIP33, and CIP40, which are claimed to reconsider the logic of how Cardano’s Plutus scripts are submitted to the blockchain. Together, the CIP upgrades will lead to lower transaction fees, improve the network’s throughput and decentralization, and solve the so-called “concurrency” issue that has severely impaired the scalability of the apps on the blockchain to date.
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Despite Cardano being one of the first smart contract-based Ethereum competitors to hit the market in 2017, it has performed significantly worse in terms of an ecosystem than most of its counterparts. It announced smart contracting capabilities long after other blockchains like Solana had already built out their DeFi and Non-Fungible Tokens (NFTs) ecosystems, and still sees significantly less activity than most other leading Layer 1 networks eight months later. As per data from Defi Llama, Cardano has around $158 million in Total Value Locked (TVL) across its decentralized apps, which is 25 times less than Solana and 455 times less than Ethereum. Interestingly, Ethereum’s market cap is about 11 times bigger than Ethereum despite the significant lead it has in the Decentralized Finance space.
ADA is currently trading at around $0.66, up around 27% from today’s low of $0.51. That puts Cardano’s market cap at about $22.3 billion.
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