On May 15, Cardano coin (ADA) reached $ 2.40 for the first time in its history. And already approaching $ 2.50. Traders were expecting a $ 2 high, but they hardly expected such a rapid onslaught of bulls. During the week, its cost increased by 20%. Against the backdrop of the retreat of Bitcoin and other major cryptocurrencies, the ADA, on the contrary, showed an upward trend in the movement.
As a reminder, at the peak of the first market run in January 2018, ADA reached $ 1,114. The altcoin bottomed out in mid-March 2020, when Cardano plummeted to $ 0.025. The rapid ascent began this year.
Altcoin interested not only the players of the spot market, but also the institutional players. Open interest in Cardano futures exceeded $ 1 billion.
Only a handful of large-cap altcoins joined Cardano in this bull run, led by Polygon (MATIC) with 24-hour gains of 24% and weekly returns of over 130%.
Bitcoin, having regained some of its lost positions after falling by 20% at the beginning of the week, remained near the lower border of its trading range. The asset cannot finally overcome the $ 50,000 mark. BTC exceeded $ 50,000 and $ 51,000 several times. However, each attempt was short-lived, and the asset fell below the coveted $ 50,000 mark. The market crash caused by Elon Musk continues to haunt Bitcoin.
In addition, high altcoins continue to erode BTC’s dominant market position. A metric comparing Bitcoin’s market capitalization to the rest of cryptoassets fell below 40% for the first time in nearly three years. For reference: four months ago it was above 70%.
While trader Scott Melker is focusing on bullish signals for the Bitcoin Relative Strength Index (RSI), hinting at progress in the coming days.
Alternative coins win. Will Cardano Surpass Dogecoin?
Alternative coins weathered the market crash better than their leader. While almost all of them were initially dumped, they made up for losses in just a few days.
Cardano is a prime example of this. ADA bounced to a crash, but the cryptocurrency subsequently retraced its price and continued to climb even higher. A few days ago, he broke the previous ATH and set a new one at $ 1.86. However, the results didn’t satisfy him, and he continued on his way up.
With this growth, ADA is close to surpassing DOGE.
The growth allowed the asset to increase its capitalization to $ 67 billion – the altcoin not only returns to the top 5, but also competes for the 4th line in the list of the largest with Dogecoin (DOGE).
A new impetus to the cryptocurrency was given by the announcement by Charles Hoskinson of the Alonzo update, which will bring smart contracts to the ecosystem. Three days earlier, the development team announced that they would also focus on decentralizing SPOs – stack pool operators. This will allow for efficient and secure communication between nodes.