Cardano currently ranks as the fourth largest cryptocurrency in market value
Cardano’s native asset, ADA, was among the best performers on Wednesday, with bulls raising their price by more than 18 percent.
The fourth largest cryptocurrency reached $ 0.87, its highest level in more than three years, as traders increased their offers for Ethereum’s main rival assets. They include Polkadot’s DOT (+ 5%), Avalanche AVAX (+ 60%), Chainlink LINK (+ 12%) and NEAR from Near Protocol’s (+ 9%).
Cardano reaches the highest level in 3 years. Source: ADA / USD at TradingView.com
Traders flocked to smart contract platforms amid growing exaggeration around their operability in the decentralized financial sector. The beginning of this year experienced a bullish boom across all DeFi protocols, with the total value blocked within its Ethereum-based smart contracts exceeding $ 39 billion on February 10.
This overloaded the Ethereum blockchain as it hosts most of the DeFi projects. As a result, transaction confirmations have been delayed and network fees have increased. This has led speculators to see a potential customer exit for Ethereum’s major rival projects.
Consequently, protocols like Cardano have made huge gains in their symbolic valuations. The ADA has risen more than 380 percent in the year to date due to favorable winds from the DeFi wave.
What’s next for Cardano?
Traders expect Cardano to repeat the bullish run of its rival Ethereum, which saw it claim a historic record this week.
“The ADA continues to rise, with only two primary resistance levels remaining before new historical highs. The first central area of resistance is the black area at the front. The ADA is now within the $ 0.72 – $ 0.94 range and over time it will continue to grow towards black. ”
Cardano’s trade configuration, shared by Rekt Capital. Source: ADA / USD at TradingView.com
Part of the ADA’s bullish boom also comes from the decline in Bitcoin’s dominance. As the top cryptocurrency corrects downwards or sideways after setting its record, it hopes to transfer a portion of its capital to rival assets like Ethereum, Cardano and others. Traders call it “altcoin reason“.
Cardano is trying to escape Bitcoin. Source: ADA / BTC at TradingView.com
For example, the chart above shows the ADA / BTC pair attempting a breakout move above a long-term resistance level starting in mid-2019, with an eye on extended highs to 2,352 sats. Such a move hopes to send the ADA to its historic high.