The current CEO of Input Output Hong Kong (IOHK), Charles Hoskinson, created Cardano blockchain and its native cryptocurrency known as ADA. IOHK mainly backs Cardano which was launched in 2017.
ADA has been in the news in recent times even as its value has increased hugely. Coinmarketcap data shows that ADA is the third-biggest crypto in terms of market cap.
At press time, its market cap is approximately $39.71 billion and the price of each token is $1.28. Its price increased by 15.19 percent over the past seven days.
It appears that its latest market momentum is due to growth regarding the use and utility of Cardano ecosystem. The developments within the ecosystem have aided some functionality and market participants are optimistic about the project.
Despite Bitcoin and Ethereum holding first and second positions respectively on the list of top cryptos by market cap, they are striving to keep up their uptrend. Conversely, the performance of ADA has been outstanding, having rallied and moved ahead of USDT and BBNB to reach third position.
Some days ago, BNB was third on the list but ADA took over and currently has a market cap which is about $8.5 billion more than BNB.
Both BTC and ETH have incurred price retracement after recording months of double-digit percentage gains. Over the past seven days, Bitcoin and Ether declined by 24 percent and 29 percent respectively. At press time, the price of Bitcoin is $44,209.12 while Ether is $1,386.89.
Nomics’ data shows that ADA has the best performance so far in 2021 among the first 20 cryptos. The performance of ADA this year is similar to Dogecoin, even as Coinbase is yet to list it on its exchange.
Market participants look forward to the hard fork of Cardano’s blockchain when the month of March begins. The blockchain is expected to turn to a decentralized, multi-asset (MA) smart contract platform when the Mary hard fork is completed.
The completion of the hard fork means Cardano network will welcome non-fungible tokens (NFTs), decentralized finance (DeFi) tokens, as well as smart contracts. Such integrations in the network come when mainstream media is paying attention to the project.
Another factor which appears to have driven the price of ADA to the upside is the report regarding a Dubai investment firm known as FD7 selling Bitcoin valued at $750 million to buy ADA and Polkadot.
The firm is likely to earn huge returns as the price of ADA was near a dollar at the time and there are a number of developments on Cardano network.