Summary
- Cardano has outperformed ETH and BTC over the past year.
- Its rise is built on the stable ground of a high rate of adoption and its emergence as a DeFi asset.
Cardano kept its upward trend today, rising to about $ 1.08 before falling to $1.01 at the time of going to press. The digital asset is up by over 1500% year-to-date and is up by over 400% since the start of the year. Consequently, its market capitalization has risen to nearly $31 billion, securing a place among the top four digital currencies. With that, its market capitalization was now twice its value two weeks ago.
The recent spike in Cardano’s price has been largely attributed to its recently-updated blockchain. The new protocol known as Goguen is the adoption of the Decentralized Finance (DeFi) mechanism. DeFi has gained significant popularity over the past two months.
Following this new development, Cadarno is viewed by many investors as being capable of competing against Ethereum, whose strength lies in DeFi. In addition, Cardano’s price rise has benefited from the fact that it is more affordable than Bitcoin and Ethereum.
A receptive market and assured investor confidence
Cardano’s rise to the top has attracted much sought-after institutional approval, and this will certainly propel it to new heights. Late last month, Grayscale added new trusts that include Cardano.
There are also sites accepting Cardano as a payment method. These include Alternative Airlines and Travala.com. Alternative Airlines has made it possible for passengers to buy plane tickets using Cardano, while Travala.com has enabled customers to book hotels using ADA.
In the digital money market, Venus, a Decentralized Algorithmic Money Market, and Synthetic Stablecoin recently announced that it was working on improving its platform to add more assets, including Cardano. Venus announced that the addition of this digital currency in its functionality will enable it to be utilized as security for borrowing and lending.
Renown traders are also directing focus to Cardano. Van de Poppe, a popular digital currency and trader projects that Cardano’s price is on its way to double-digit territory.
A competitive alternative to ETH and BTC
Not only has Cardano outperformed the global cryptocurrency market, but it has also outperformed the two leading virtual currencies, ETH and BTC. Bitcoin is at 422% year-to-date growth while ETH is at 535%. On the other hand, ADA is up 1500%. To put that into perspective, Dogecoin’s “fairytale rise” has “only” seen it rise by 1800%.
Cardano has been on a meteoric rise without celebrity endorsements, memes, and good luck. Cardano’s price increase has been the result of the high level of its adoption and its competitiveness against other digital currencies.
ADA’s emergence as an effective substitute to Ethereum will enable its price to rise further. This is because it costs significantly less than ETH and BTC and, thus, will seal the gap for investors betting against Bitcoin and Ethereum.
ADA/USD technical outlook
The price of ADA/USD has been rising since the beginning of this year.
Today Cardano went past the $1.03 mark and was on an upward surge at the time of this writing.
The Relative Strength Index (RSI) is moving upwards, thus, showing a bullish outlook and boosting Cardano’s price.
The first resistance level will be at $1.09, while the second resistance level will be at $1.1. A break above this level could see a spike to retest the week-high $1.19. Otherwise, the price will oscillate between $0.86 and $1.07.
