Price hikes and slumps are the core attributes of the crypto market. This element of volatility is the most unique prospect of crypto market trading. However, for the regulatory authorities, this element of volatility is a threat. While crypto traders do believe that volatile nature is the main reason for people to invest in crypto as it provides the investors with change to gain unlimited profits. The perfect example of price volatility is the recent price hike in Cardano’s ADA prices.
Cardano prices have risen more than 20% in the past 24 hours. This is the highest value Cardano has ever achieved since May 16th. Cardano has replaced Binance Coin as the world’s third most valuable cryptocurrency.
The primary reason behind this price hike is the rumor that Cardano is moving towards the DeFi, NFT, and other automated transaction systems and blockchain world. Crypto experts have often labeled Cardano as “Ethereum killer” because it can outperform ether relatively bigger crypto with an upgraded smart developing system.
The Cardano is a blockchain-powered cryptocurrency. It is also called ADA, Cardano’s blockchain system is widely regarded as direct competition to Eethereum and Solana. The biggest reason behind this price hike is the launch of the Alonzo Purple public test net launch. Currently, the project is in the final phase. The finished project will enable the blockchain system to get smart contracts capability.
As a result of this news, the worldwide crypto market has seen a bullish trend, as a result of this bullish trend the current market cap of the worldwide crypto market has surpassed the $2 trillion mark.
Even though Bitcoin and Ether are still the two of the world’s most valuable crypto tokens. But other cryptocurrencies such as Cardano, Binance coins, Stable Coins, and altcoins are also pushing their limits to reach the top end of the market. The fact of the matter is that hikes over the past two months have not negatively impacted the prices of digital tokens. This is the first time that cryptocurrencies are showing stability against volatility trends.
The impending ‘Alonzo’ update is driving the bullish perspective. The improvement group reported the dispatch of the public test net on Twitter. Fusing keen agreements is basic for the blockchain as it presents a scope of new capacities like DeFi (decentralized money), NFT (non-fungible token), robotized loaning, and then some.
The new update of Cardano this is also labeled as “Ethereum Killer” will hit the crypto market on September 12th. Crypto scholars have said that it would be a game-changer. In terms of the market size, it is expected to be four-time greater than Solana.