Developed by IOHK, Cardano (ADA) surpassed XRP in terms of market value for the first time. According to CoinGecko data, the ADA market is 21.6 billion; The XRP market is worth $ 19.9 billion.
While many coins, including Bitcoin, are losing value; The ADA price rose more than 25% in one day. Looking at the weekly chart, it can be seen that it almost doubled in value by 90%.
This performance made ADA the fourth largest cryptocurrency. Founded in 2017, Cardano thus surpassed XRP for the first time in its history.
ADA price doubled
The hard fork named Mary in the Cardano network was successfully completed on February 3. This is one of the turning points that represent the transition from Shelley to the Goguen era. At the end of this process, Cardano aims to strengthen its position in the decentralized finance (DeFi) world.
The ADA price was in the range of $ 0.30-0.35 from New Year’s Eve until Feb.2. The day before the Mary fork was over $ 0.40. This update, which is thought to make Cardano an ecosystem that “supports many different assets”, carried it up to $ 0.68.
This update, which has been implemented in the Testnet network, is expected to be transferred to mainnet at the end of February.
Cardano steps into the DeFi world
IOHK is trying to make Cardano an ecosystem that can support several different assets and tokens simultaneously. The team, which works on tokenization, follows a different path than Ethereum.
Ethereum-based tokens that follow the ERC-20 or ERC-721 standard use smart contract technology. Cardano aims to be a rival to Ethereum by following a different route with the claim that this is a risky method. Elliot Hill of the Cardano Foundation team explains the difference between the two in these words:
“In order to use a DeFi token in Ethereum-based blockchains, a smart contract is needed. … Cardano-based tokens will be directly based on the mechanics of the Cardano blockchain, not a smart contract. Eliminating this need for smart contracts means reducing transaction costs. ”
Tim Harrison, one of the executives of IOHK, argues that this is a technology that is superior to standards like ERC-20. Charles Hoskinson, founder of the IOHK Foundation, thinks they will “show the day” to Ethereum.
Grayscale has applied for ADA
Grayscale, the world’s largest digital asset manager, signaled that he could set up a private fund for ADA in his application in the first weeks of 2021. In the application, the names of different crypto assets such as Aave, Cosmos, EOS, Monero, Uniswap, Polkadot were also mentioned.