The wider cryptocurrency market is declining, but Cardano continues to rise and surpass Solana in market capitalization; Cardano therefore is the only bright spot among digital tokens and coins.
ADA-USD trades at $1.50 on FX. This is a price rise of more than 10%. Cardano is now the 5th most valuable Crypto (worth more $55 billion), surpassing Solana, a fast-rising Blockchain by over $6 billion.
The altcoin has been moving higher since mid-November as Bitcoin and Ethereum, two largest digital coins, have fallen into bear market territory with each having more than 30% lower than their previous highs.
Cardano is currently developing a number of new projects, including a marketplace for non-fungible tokens (NFT), and an exchange that allows decentralized financial transactions (DeFi).
These projects may not be realized yet, but they are an example of Cardano’s utility as well as functionality.
Cardano uses a “proof-of-stake” model that is more efficient than Bitcoin’s and Ethereum’s “proofs of work” models. The energy consumption rate of crypto assets such as Bitcoin and the entire crypto sector is high.
Launch of smart contracts on blockchain on September 12, 2021 led to the development of decentralized finance (DeFi), and dApps in the near future.
These products are not necessarily free. There is usually a transaction fee that is paid using a cryptocurrency natively to the blockchain.
As dApps on Cardano and DeFi products become more popular, ADA will see a rise in demand, which will cause its price to go up.