Nowadays, the news and inspiration about blockchain platforms are frequent around the globe. There are many public blockchains in existence. Blockchain applications are spread across many industries and many applications. Cardano is one of such public blockchain platforms which is also open-sourced and decentralized. Cardano is a peer-to-peer transaction facilitator, with its internal token ADA. However, the Cardano (ADA) token has become the 3rd largest cryptocurrency in the crypto-world. On the other hand, decentralized finance and virtual currencies have started dominating traditional methodologies of finance. What is the background of Cardano (ADA), and how did it become the 3rd largest? Let’s discuss
Decentralized finance, or DeFi, involves transferring financial functions to digital ledgers, allowing users to do things like lend or borrow money and collect interest on a savings account without the use of traditional middlemen like banks. Its rise in popularity is part of a larger trend of rising blockchain adoption.
According to the records, recent rises in Bitcoin, Ether, ADA, and other tokens pushed the cryptocurrency market to surpass $2 trillion in value for the first time since May, when the notoriously volatile sector had a meltdown.
Background of the Cardano (ADA)
Cardano is a decentralized platform that is designed using the Proof-of-stake (PoS) consensus mechanism. PoS is a better alternative to the Proof-of-Work consensus mechanism, which is often used in Ethereum networks. Considering scalability, interoperability, and sustainability, PoS gives a higher potential because the growing costs and energy usage are significantly reduced in PoS. In 2015, the Cardano platform was launched and in 2017 its token ADA was launched.
How did it become the 3rd largest Cryptocurrency?
With the ADA coin increasing roughly 50% in the last week, there’s growing hope that fresh technology advancements will allow Cardano to support smart contracts by its scheduled deadline of Sept. 2021. As a result, its network will be able to provide profitable services like DeFi, which Ethereum presently dominates. Currently, the ADA token has a market value of about $69 billion. Impressively, over the last year, ADA has increased by more than 1,400%, outperforming both Bitcoin and Ether. All those facts lead the ADA investors to a more satisfying path, ensuring their investments are worthwhile.
- The above discussion is neither financial advice nor financial recommendation. It is a basic study on cryptocurrency which is done based on resource sources. Therefore, our team accepts no responsibility or liability for any predictions/decisions you make in the industry.