While the broader cryptocurrency market is falling, Cardano is rising and surpassing Solana in market value; thus, Cardano is a lone bright spot among digital coins and tokens.
ADA-USD is currently trading at $1.50 on FTX, a price increase of over 10%, which thus, makes Cardano the most 5th most valuable Crypto by market value (worth over $55 billion) surpassing Solana a fast-rising blockchain by over $6 billion.
Since mid-November, the altcoin has been marching higher as Bitcoin and Ethereum, two of the largest digital coins, have fallen into the bear market territory, each with more than 30% below their all-time highs.
A number of new projects on Cardano are being developed such as a non-fungible token (NFT) marketplace and an exchange for decentralized finance transactions (DeFi).
Even though these projects are a little way off from becoming real, they highlight Cardano’s utility and functionality.
It is important to note that Cardano operates on a “proof of stake” concept that is more efficient and greener than Bitcoin and Ethereum’s “proof of work” concepts. Most crypto assets like Bitcoin and the crypto sector, in general, suffer from a high energy consumption rate.
The launch of smart contracts on the blockchain on Sept. 12, 2021, resulted in the development of dApps and decentralized finance (DeFi) services in the near future.
These products are not free, however. There is a transaction fee, which is typically paid with a cryptocurrency native to the blockchain.
Therefore, as dApps and DeFi products on Cardano become more popular, ADA demand will increase, causing its price to increase.