Although Cardano’s native token is a little unknown in the crypto market in terms of its popularity, ADA is now the third-biggest digital asset, with the network developers embracing to enjoy the boom in decentralized finance.
With the crypto asset making more than 50 percent gains over the last week, many experts are optimistic that the blockchain will successfully launch the smart contracts by its announced September deadline. The move will likely pave the way for the company to offer decentralized services like Ethereum.
Since its inception, the token has faced skepticism from big names on the crypto and traditional market. Yet, contrary to their expectations and analysis, ADA currently has more than $69 billion in value, only behind the two most popular tokens, Bitcoin and Ethereum. On the other hand, the massive 14,000 percent surge in ADA’s value is far bigger than those on Ether and Bitcoin.
On the weekend, ADA jumped as much as $2 for the first time in a couple of months. Interestingly, the surge came after the company’s chief announced the Alonzo upgrades on the network. The move is likely to address what critics have suggested as the major deficiency on the network.
Alonzo upgrades would enable the smart chain contracts on the network, allowing it to capture some of the decentralized space that allows users to experience automated lending and borrowing. However, Ethereum currently dominates the space.
Cardano competing with Ethereum
Over the past few months, Cardano’s supporters have been waiting for the launch of smart contracts on the blockchain. Only recently, the network chief confirmed the September 12 date for the upgrade. Once launched, the company will compete with the second most popular digital asset Ethereum in offering smart contracts on DeFi.
Cardano has previously made its goals of competing with Ethereum public by offering services to DApps, albeit more securely and efficiently than the former.
DeFi space or commonly known as decentralized finance, is based on digital ledgers that allow users to lend and borrow assets without any third party like banks or brokers. With the wider adoption of the blockchain, this space is becoming quite popular as the market gains credibility.
Market hits $2 trillion market cap
After two months of a downward trend, the crypto market has managed to make some gains over the last week, with major tokens rising in value. BTC is currently being traded at $45,000, and Ether has maintained its position over the $3,000 mark.
In addition to that, Dogecoin, which was inspired by an internet meme, managed to gain ten percent following recent comments by SpaceX’s Elon Musk and Mark Cuban.