A little-known digital token linked to the Cardano blockchain has just become the third largest virtual currency in the world as network developers look to experience the boom in decentralized finance. With the so-called ADA cryptocurrency soaring around 50 percent in the past week alone, optimism is rising that new technological improvements will enable smart contracts on Cardano by the announced September 12 target. That will enable the network to offer lucrative services like DeFi. , where Ethereum currently dominates.
In a rally that was greeted with skepticism by some of the industry’s big names, the ADA token now has a market value of more than $69 billion — bigger than all rivals except Bitcoin and Ether, according to tracker CoinGecko.
“Cardano enthusiasts have been waiting — some impatiently — for what seems like an eternity for some smart contract news,” said Antoni Trenchev, managing partner and co-founder of cryptocurrency lender Nexo. “Cardano battles No. 2 crypto Ethereum to be the preeminent blockchain offering smart contracts.”
The jump of more than 1,400 percent in ADA over the past year has surpassed returns of both Bitcoin and Ether.
The virtual currency has risen despite skepticism about the usefulness of some prominent cryptocurrency commentators. For example, Mike Novogratz, chief executive officer of Galaxy Digital LP, posted on Twitter on Sunday, “I spoke to twenty of the brightest people I know in space, and none of them saw Cardano gripping” with developers.
“Most people outside of crypto have never heard of Cardano – but here it is with a market cap” that outperforms many S&P 500 index constituents, Mr Trenchev said.
Decentralized finance — or DeFi — transfers finance functions to digital ledgers, allowing people to do things like borrow or borrow money and earn interest on a savings account without the need for traditional intermediaries like banks. The growing popularity is part of a broader trend of increasing use of blockchain.
Recent rallies in Bitcoin, Ether, ADA and other tokens helped the cryptocurrency market rise more than $2 trillion in value over the weekend for the first time since May, when the famously volatile sector succumbed to defeat.
(Except for the headline, this story has not been edited by NewsMadura staff and has been published from a syndicated feed.)