After a surge over the weekend, Cardano rose in the rankings and finished fourth on CoinMarketCap
2021 has been a good year for Cardano so far. ADA has grown by around 300% since the start of the new year. The weekend was especially exciting – not only did ADA gain more than 50%, from $ 0.44 at the start of Friday to $ 0.67 at the time of writing, but it also crept into fourth place on the rankings on CoinMarketCap.
After starting on Friday in sixth place with a market capitalization of around $ 14 billion, Cardano flipped first Polkadot and then Ripple and is currently in fourth place with a market capitalization of $ 20.7 billion, just behind Tether, whose market capitalization is $ 28.8 billion. ADA also hit its three-year high last week, though it’s still only trading about half of its all-time high of $ 1.40 that it hit in early 2018.
With Cardano’s rise as a direct competitor to Ethereum, many have invested in ADA to hedge against potential issues in the development of Ethereum 2.0. Indeed, Charles Hoskinson, the founder of Cardano, who also co-founded Ethereum, heightened some people’s worries when he criticized Ethereum 2.0’s scaling model in an interview with Ben Armstrong last week.
“We chose radically different scaling models,” said Hoskinson. “Actually, I think both have potential to work, but I think Vitaliks [Ethereum co-founder] are a bit riskier from a technical and scientific point of view, which is why it was so difficult for them to get Eth2 out. “
Another catalyst for the price hike could be the Mary Hard Fork that took place last week. The update named after the Frankenstein author Mary Shelley will activate the decentralized financing in the network and support the development of intelligent contracts for the first time. In addition, the news that Grayscale Investments has applied for a Cardano Trust, among other things, could have a positive impact on ADA’s price.
As for ADA from here, the relative strength index on both the weekly and daily charts suggests that ADA is currently overbought so we could see some consolidation in the near term. However, with thousands of new Cardano wallets being created every day, the large ADA transactions are on the rise and Google searches for “Cardano” are on the rise – suggesting that the Cardano excitement is not showing any signs of subsiding in the longer term.