Cardano (ADA) Analysis: Why Is it Getting so Much Traction?
New investors drive ADA up towards the top five
No one can deny that Cardano (ADA) is having its best week, with prices hitting record highs within a short period of time. Big exchanges such as Binance and Bittrex have recorded around $303,902,000 and $270,547,000 trading volumes respectively, something that shows increased investor confidence. But why is it getting this much traction, when it was barely known a few months ago?
Reason for the Massive Surge
If you looked at the market cap of ADA in the first week of December, 2017, it stood at a little over $2 billion, which was way below the top 5 digital currencies. A week later, the price run culminated in a market value of more than $12 billion, making it the sixth most valuable coin. Come New Year, it looked like the price was not ready to slow down. At the time of writing, Cardano (ADA) has a market capitalization of a whopping $31,308,493,299 and stands in fifth position, sitting behind Litecoin.
Now, the reason why the prices of most cryptocurrencies are surging is through big announcements, like the one we had recently about the adoption of Ripple by banks or the introduction of Bitcoin Futures by major exchanges. However, this has not been the case for ADA – no big announcement whatsoever!
But there are factors that have contributed positively to its growth. For starters, the rise in number of new investors who are looking for a less expensive coin to put their money on! You see, when novice investors enter the market, most shy away from the likes of Dash, Ethereum and Litecoin because of their high prices. They go for promising coins that have a lower valuation, and considering that Cardano is the best bet, it stands to gain the most. It’s price was hovering at around $0.6ion December, but it has doubled to around $1.21, at the time of writing.
Cardano has also managed to capitalize on the Japanese, South Korean and Asian markets, enjoying a superb run in these countries. The demand for the coin on exchanges based in these countries has increased, with the trade volume spiking tremendously.
Is now the Best Time to Invest in Cardano (ADA)?
Considering the current run, most investors may be convinced that it’s the best time to jump on the bandwagon. Chances are that the cryptocurrency will sustain the run, especially because of the value of the improved smart contract platform that it offers. Some industry experts even believe that it will dethrone the smart contract pioneer, Ethereum.
Smart contracts are considered to be the next big thing, so it’s not too far-fetched to believe that Cardano will be one of the influential players in the cryptospace. But do you think it will finally outdo Ethereum, which has dominated the smart contract field to date? Will we continue to see the adoption and price run that ADA is enjoying today? Let’s hear what you have to say.