Cardano (ADA) may turn out to be the most successful cryptocurrency of 2020, according to its maddening statistics. Far from being coincidental, this growth would be the result of the combined action of three main levers.
Cardano crypto-champion of the year 2020?
Unlike other major cryptocurrencies, including Bitcoin (BTC), which have remained rather static in view of their historical turbulence, the Cardano (ADA) has grown steadily. With cumulative progress of more than 200% since the beginning of this year, according to the cryptographic research company Messari, it greatly outperforms BTC and other marketCap star cryptocurrencies. This performance undoubtedly earned him, being particularly under the spotlight in recent weeks.
The Cardano course went from $ 0.074 to $ 0.137 in less than two weeks. Thanks to this 85% increase in ten days, Cardano officially exceeds Bitcoin Satoshi Vision (BSV) and currently ranks sixth among the largest cryptocurrencies by market capitalization.
The Cardano was only surpassed by currencies from the Challenge, the latter presenting special cases, enjoying a rush of adoption stimulated by multi-million dollar incentive systems.
The 3 reasons for the Cardano explosion (ADA)
Three major reasons explain this extraordinary performance of the Cardano. First, we will talk about the new upgrade called “Shelley“. Besides, it’s hard to deny that the market is currently particularly favorable. Finally, the rapid growth of the decentralized finance (DeFi) market is probably not for nothing in the recent course of the ADA.
1er July, the Shelley upgrade was deployed on the main Cardano network. It should be noted in passing that by July 29, other updates will be made on the network through a hard fork.
Of course, this had a positive effect on the price of the ADA token. Remember, Cardano follows a slightly different model than other cryptocurrencies and does not involve minors. Rather, it works on a staking system. As a result, it is the users who directly benefit from the rewards. Given the new incentive model and the attractiveness of the rewards that Shelley brings, it is easy to understand why this cryptocurrency is experiencing such an explosion.
Furthermore, the recent surge in ADA prices has finally marked the break in the level of critical resistance since 2018. Indeed, since 2018, the level of $ 0.107 has constituted a strong level of resistance for ADA. Tested in September 2018 and June 2019, all crossing attempts had so far ended in a massive sale. This favorable ADA market structure was probably one of the reasons for the sudden interest of investors in this cryptocurrency.
Finally, the market Challenge on Ethereum has exploded and now far exceeds $ 2 billion. Which no doubt gave ideas to Charles Hoskinson, the founder of Cardano, who hinted through a tweet that his cryptocurrency could join the decentralized finance market. What made the Cardano even more attractive.
Due to the Shelley upgrade, the break in the multi-year critical resistance level and the explosion in the DeFi market, Cardano could very well enter the race for the best performing cryptocurrency of the year 2020.
In the crypto-bath since 2017, both much too late but quite early from the point of view of my future grandchildren ????
Writer, Amateur Trader, Ethereum and NEO-compatible