A darling of many in the crypto space, Cardano performed excellently last week
Charles Hoskinson’s cryptocurrency, Cardano (ADA), had a huge weekly increase of 92%, which allowed it to climb to sixth place in the list of the largest cryptocurrencies by market capitalization. In doing so, the ADA even overtook Bitcoin Cash (BCH), which is currently in 8th position.
Cardano price rises more than 92% in a single week
The ADA’s recent price movement has allowed the cryptocurrency to make gains of almost 100% last week, with the currency rising 26.71% in just the past 24 hours. At the time of this writing, the coin’s price was $ 0.3390.
Just four days ago, on January 3, the ADA price was at $ 0.179, after moving mostly sideways for more than a month.
As mentioned, the movement of the currency even allowed it to overtake Bitcoin Cash, as well as Polkadot (DOT), which is currently in 7th place. Still, the ADA is a long way off now, with its market value at $ 10.6 billion, while DOT has only $ 9 billion at the time of this writing.
Why has Cardano’s price grown?
As for the reason for the ADA’s rise, there are two main factors – the currency’s share in a rally led by Bitcoin across the market and the Cardano network updates themselves that are expected in 2021.
The first reason is quite easy to understand. It is something that has happened repeatedly in the cryptocurrency industry. Simply put, Bitcoin’s dominance over the market makes other currencies want to follow.
The second concerns the Cardano ecosystem. The project already released a major update to its main network last year – Shelley. This was a great milestone, and its arrival improved sentiment around the ADA, especially after the delay of ETH 2.0.
Despite the release of the update, Cardano has yet to deploy smart functional contracts, which will allow DeFi and dApps to thrive on its network. This is something that the community expects to see in 2021.
Unfortunately, the ADA team has not yet announced the schedule for any of the next updates, but expectations remain high, and there are technical factors that support the rise of the ADA, with BTC reaching $ 38,000 being just one of them.