ADA, the native token of Cardano, breached the $2 mark on Friday nearing its previous all-time high. According to CoinMarketCap, ADA is the 4th largest cryptocurrency by market capitalization, with a value of around $63 billion as of 14th August.
The collective market value of all cryptocurrencies rose above $2 trillion after testing the waters for over 3 months. Bitcoin rallied at $48,000 on Saturday, the highest level since May 16, 2021. While XRP, Dogecoin and Binance Coin also saw quite an advance.
Meanwhile, ADA saw the largest spike of nearly 45% in a single week and 1365% against the dollar in 12 months. Cardano’s massive upswing can be attributed to several factors, including strong bullish sentiments across the market, but most notably Friday’s announcement of the upcoming upgrade – Alonzo Purple.
What is Cardano’s Alonzo Upgrade?
Cardano’s Nigel Hemsley announced in a video that the much anticipated ‘Alonzo Purple’ upgrade will be launched on September 12. The upgrade aims to boost the Cardano project by enabling advanced smart contract solutions.
The name Alonzo has been derived from the American Mathematician, Alonzo Church, who played a pivotal role in establishing the foundations of theoretical Computer Science.
Since the inception of bitcoin in 2008 by Satoshi Nakamoto, the technology behind cryptocurrencies has undergone three stages of generational transformations. And Cardano is at the helm of the third and the latest round of innovations.
Cardano, founded by Mathematician Charles Hoskinson, successfully replaces the energy-intensive Proof of Work validation deployed by bitcoin with the new and efficient Proof of Stake system.
Why is Cardano the most promising cryptocurrency?
Besides being backed by the best minds in the blockchain world, Cardano’s Alonzo upgrade will give the cryptocurrency an edge over its immediate competitor and predecessor – Ethereum.
Cardano is often referred to as the “Ethereum Killer”. Through the Alonzo upgrade, Cardano will now enable fully functional advanced Smart Contracts and DeFi solutions which was hitherto a monopoly of the Ethereum network.
ADA’s relatively low transaction costs and higher efficiency coupled with a vibrant outreach programme make it the ideal cryptocurrency. Perhaps, Cardano’s social goal of banking the underdeveloped communities of Africa has drawn tremendous cheerleading from the crypto-community for it to succeed.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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