Bitcoin has fallen below the $ 50,000 level.
The decline of Bitcoin pulled with it most of the cryptocurrency market, and only a few alternative digital currencies escaped the appeal of its decline.
Cardano coin “ADA” is one of these digital currencies that distinguished itself from the bear market context.
The digital currency, “ADA”, rose 46% in the last week, 269% last month, and 2,633% since last year.
With all this upward momentum, the “ADA” digital currency has managed to become the third largest cryptocurrency by market value.
Today, at the time of preparing this article, the “ADA” digital currency continues to rise as the currency’s price reached the level of $ 1.37, even as most of the market remains in the red.
Bitcoin is down 15% this week and Ethereum is down 22%.
Regardless of the digital currency “Dogecoin”, whose price rose after “Elon Musk” tweets about it, “Cardano” has become the third largest digital currency in terms of total market value and the best performance currency, according to data provided by “Nomics”.
Impressively, the Cardano coin has performed well despite not yet being listed on the Coinbase platform, which is a major platform and gateway for US investors.
Why is the ADA price increasing?
The recent rise in the price of the ADA coin can be traced back to two reasons:
First: The next update of the Blockchain Cardano, which will receive the “Mary” split at the beginning of next month, March.
With this update, Cardano will become a decentralized smart contract platform that supports multiple assets (MA).
The new update “Mary” will support smart contracts, decentralized finance (DeFi) and non-exchangeable digital currencies (NFTs) all coming to the network in the coming hours.
The advertised features, despite their availability in Ethereum, but the Ethereum fee bothered many users, which made them anticipate any competing blockchain that offers Ethereum features at lower fees.
Second: The rise in the price of the digital currency ADA can be attributed to the news of the investment of “FD7”, an investment company in Dubai, that sold 750 million dollars of Bitcoin in order to be able to buy the ADA and DOT currencies.
Gerald Vota, director of communications at the investment research firm Quantum Economics, told the source:
Given that Cardano has been trading near the dollar and the platform has a lot of well thought out development, this may be the smartest game FD7 can take to achieve greater returns.
The “Bolcadot” coin, another recipient of the “FD7” investment, however, its price fell by 13% during the week, so the ADA’s rise is unlikely to be attributed to the investment of “FD7”.
Charles Hoskinson, the founder of Cardano, who also co-founded Ethereum, has told him that he does not know what caused the price of ADA to rise, as he recently stated:
If I knew why prices behave the way they do, I would be a trader, not a builder.
I focus on the growth of the Cardano ecosystem and realization of the use and utility of our industry in the developing world.