Why Could Cardano Return 1668% In 8-month and Became the Third-largest Cryptocurrency?

September 13, 2021 at 2:00 pm

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Why Could Cardano Return 1668% In 8-month and Became the Third-largest Cryptocurrency?

Crypto markets are prospering today, especially the altcoins. Currently, the popular altcoin ADA, Cardano’s native coin, continuously registered its all-time highs since August 19th, surpassing the previous record of $2.47 on May 16th. As of May 2021, Cardano is the fifth-biggest cryptocurrency by market capitalization. Three months passed by, it became the third-largest one, behind Bitcoin and Ether.

At the time of writing, the latest ATH was $3.10.

What Is Cardano?

Cardano is a blockchain platform that aims to be a better place where people can create smart contracts. It combines pioneering technologies to provide security and sustainability to decentralized applications, systems, and societies. Simply put, Cardano is a proof-of-stake blockchain platform with a native cryptocurrency called “ADA”.Learn more.

Data That You Ought To Know

ADA increased by about 1668% during the year

This year, ADA broke the relatively stable trend of last year and traded in an obvious upward channel. According to statistics, the closing price of ADA for a total of 25 days this year exceeded $2, reaching a maximum of $2.96. Since March, the closing price has basically stabilized at above $1. The average price this year is about $1.21, an increase of 1,244.44% from the average price of $0.09 last year, a significant increase. However, Bitcoin has not risen that much.

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The daily active address has exceeded 110,000

In addition to the rising currency prices, Cardano’s on-chain fundamentals have also developed to a greater extent this year. From the perspective of user scale, as of September 2nd, ADA’s non-zero addresses have reached 2.23 million, an annual growth of 248.44%, and a growth rate of 253.97% higher than last year.

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The number of daily active addresses of ADA has exceeded 110,000, the highest number of daily active addresses has reached 177.32K, and the number of days when the number of daily active addresses exceeds 100,000 has also reached 60 days. In addition, the average level of user activity has also increased significantly. According to statistics, the average daily active address of ADA this year is 76,100, an increase of 631.73% from last year.

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The monthly average number of transactions exceeds 970,000

ADA’s on-chain transaction activity basically matches the development of market value. The activity of Cardano’s on-chain transaction has increased significantly this year.

According to statistics, as of August 22nd, Cardano’s monthly average monthly on-chain transactions totaled approximately 973,000 times this year, an increase of 620.74% from the total monthly average of 135,000 transactions last year. The average growth rate higher than the overall growth rate may be affected by the number of transactions on the chain in May of this year, which exceeded 1.61 million, which coincided with the ADA’s currency price hitting a record high.

In terms of transaction volume, the total amount of Cardano’s on-chain transactions so far this year is approximately $1,135.617 billion, an increase of 719.63% from the total amount of $138.552 B of on-chain transactions last year. It is expected that this increase will continue to expand by the end of this year. In addition, this year’s Cardano’s monthly average on-chain transactions totaled approximately $142 B, a rapid increase of 1134.78% over last year.

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What Contributed to the skyrocketing ADA?

Ada has skyrocketed 1668% this year alone- the open price was $0.1753 and the all-time high by now was $3.10. It is now the best-performing top five cryptocurrencies compared to returns of 1,030% for Binance coin, 330% for Ether, and 59% for Bitcoin. However, it needs to be acknowledged that tokens are also susceptible to broader crypto market volatility. Now, let’s see the main reasons for the bull run of ADA.

ADA is more environmentally sustainable than Bitcoin

ADA soared in May after Elon Musk announced that Tesla would no longer accept payment in Bitcoin due to the hefty environmental downside of the massive amounts of electricity used to “mine” new coins. Instant time, the crypto market crashed and has yet to fully recover, but ADA surged to new highs as investors flocked to more environmentally sustainable tokens.

The Upcoming Alonzo Upgrade

The upcoming Alonzo upgrade might be the reason for the price soar of Cardano(ADA). The upgrade will allow smart contracts to be built on the network, potentially making the Cardano blockchain more attractive to a wider amount of users. The Head of Delivery & Project at Input Output (IOHK), Nigel Hemsley, has revealed the launch date of the Cardano Alonzo upgrade-September 12nd.

*Smart contract is a piece of code that allows people to enter financial agreements without the need for a centralized party.

What To Expect On Cardano(ADA)?

Alonzo upgrade is on the way

Now all eyes will be on the September 12 Alonzo upgrade and how it will lead the ADA’s current positive run. If things go well, ADA could be a primary competitor to Ethereum, ushering another era in the crypto market. Ethereum already offers smart contracts and has drawn the interest of institutional investors for its range of potential uses in financial services. The same situation could happen to Cardano.

The price may go up further

Investors are continuing to drive the value of Cardano higher due to the upgrade. ADA is among the most highly sought-after cryptocurrencies for new traders due to its still-relatively low price and a promising future.

Most of the firms have a bullish forecast on Cardano’s future price. Coin Price Forecast sees a sizable upside and expects ADA fly to $5.47 by the end of 2021, which suggests an upside of 87 percent. WalletIInvestor forecasts that ADA will reach $4.736 in 2021 and $12.505 in five years, which is a potential return of 62 percent and 328 percent, respectively. Digital Coin Price also has a similar prediction and sees ADA reaching $4.3 by the end of 2021 and $5.33 by 2022.

How to Profit In This Bull Run?

Buy at a low price for long-term profit

After the release of the upgrade launch date, Cardano Price was soaring tremendously. It can expect more price soar in the forthcoming days. Based on the positive price prediction on Cardano in the future years, some investors might switch their investments and put money in Cardano. With the confidence about the Alonzo upgrade, it is bright to buy this altcoin to gain long-term profit.

Utilize 100x leverage to gain short-term profit

It can be seen from the green candles that Cardano goes well recently. If traders want to gain a short-term profit, leverage trading is greatly suggested.

Take Bitcoin as an example. With 100x leverage applied, you can use 1 BTC to long a position worth 100 BTC(predicting BTC price will be up) In spot trading, if you buy 1 Bitcoin at the price of $50,000, and when it rises to $55,000, you’ll gain only $5000 as profits. While on Bexplus, if you invest in 1 BTC at the same price with 100x leverage, and the Bitcoin price rises to $55,000, you have a chance to get profits of $500,0000.

*Calculation of the profit: ($55,000-$50,000) *100= $500,000

Know more about Bexplus

Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on a variety of trading pairs: BTC, ETH, ADA, DOGE, XRP, etc. Bexplus doesn’t require KYC and is popular among over 800k traders from over 200 countries/regions. In addition, it is safe for being accredited by MSB (Money Services Business).