Amid a decline in the cryptocurrency market, Cardano (ADA) turned out to be one of the few growing assets. Over the past day, its price has risen by 4%. For the week, growth is 22%, which makes ADA one of the most successful assets in this segment. At time of publication, ADA is trading near new all-time highs at $ 1.33.
As a result, the capitalization of ADA reached $ 39 billion. Which in the context of a wider decline allowed it to take a place in the top 3 cryptocurrency market after Bitcoin and Ethereum and bypass Binance Coin (BNB), Tether (USDT) and Polkadot (DOT).
Analysts believe that this is far from the limit – by the end of the year, the coin may grow another 10 times.
The main driver of this rapid growth is the upcoming launch of the Goguen update, which will allow users to create their own tokens, launch smart contracts, decentralized applications (dApps) and DeFi protocols.
Dubai Fund FD7 goes to sell Bitcoins to buy Cardano (ADA)
Against this backdrop, the $ 1 billion Dubai fund FD7 announced that it would sell $ 750 million worth of bitcoins over the next 30 days to grow its positions in ADA and DOT.
“This step, in effect, leads to the sale of most of the company’s Bitcoin assets to buy the growing Cardano and Polkadot projects”, the press release said. According to the company, increasing investment in these altcoins will better serve the interests of FD7 investors. Cause they looking to diversify their portfolios in the growing crypto space.
FD7 Ventures managing director Prakash Chand argues that Bitcoin, in addition to its role as the first form of digital store of value, is “actually pretty useless”.
“Projects like Cardano, Polkadot and Ethereum are the foundation of the new Internet and Web 3.0, he added. I want to bet that Ethereum, Cardano and Polkadot will be more valuable than Bitcoin over the next few years”.
Competition between Cardano and Ethereum
Cardano is a decentralized blockchain system conceived as an alternative to Ethereum, but faster, more scalable, and more secure.
One of the main differences between the Cardano blockchain and its competitors: the network is divided into two levels. One for transactions with ADA coins, and the other for smart contracts and dApps. An error in one of the levels does not affect the work of the other – they work in parallel with each other.
A new programming language was developed for Cardano smart contracts – Plutus. It should become a more advanced analogue of the smart contract standard for launching ERC-20 tokens for Ethereum.
Ethereum is the dominant player in the smart contract market today. However, the Cardano team believes that the upcoming updates will make the project from a technical point of view a better network than Ethereum. Moreover, even after Ethereum’s transition to 2.0, Cardano will still outperform it in many ways.
Now we see many promises and promising developments, but Cardano’s functionality is still very far from current capabilities of Ethereum. We don’t think Ethereum is worth worrying about.
However, it is worth noting that Ethereum will still lose its monopoly position – several platforms will compete on the market. We believe Cardano will be one of the strongest players.
ADA Pricing Prospects
As for price predictions, analysts are confident that the uptrend will continue, but warn of possible corrections. However, the rapid rise in ADA in recent weeks has come as a surprise to many.
If Ethereum has problems scaling and implementing the update, then we can see prices even higher; any problems with ETH are in the hands of ADA.