Cardano outperforms Bitcoin Cash by market cap after ADA price rose 100% last week

The price of Cardano (ADA) rose more than 100% last week, surpassing Bitcoin Cash (BCH) to become the sixth largest cryptocurrency in the world by market capitalization.

There are two main factors behind the sharp rise in ADA in recent weeks. First, most major cryptocurrencies saw major rallies following BTC’s uptrend to $ 36,400, and Cardano has some major network updates planned for this 2021 year.

Daily price chart of the ADA / USDT pair (on Binance). Source: TradingView.com

The excitement rises with the launch of Cardano smart contracts

Cardano started its mainnet Shelley in 2020 Initiate the growth of Cardano as a proof-of-stake blockchain protocol.

Cardano outperforms Bitcoin Cash by market cap after ADA price rose 100% last week
Cardano outperforms Bitcoin Cash by market cap after ADA price rose 100% last week

Shelley’s start was a major milestone for Cardano and created a general sentiment regarding ADA that improved over the course of 2020.

Smart contract functions are not yet activated in the Cardano blockchain. When intelligent contracts are running, DeFi protocols (decentralized finance) and other decentralized applications can be started in addition to Cardano.

Binance Academy researchers said the introduction of the smart contract features is part of the Goguen update. Given the importance of this network update, market sentiment around ADA appears to be improving. The report states:

“Until December 2020, functional smart contracts can no longer be started on the blockchain platform. As part of the roadmap, these will be started as part of the Goguen update. After Goguen, the basho era will focus on optimizing. The scalability and interoperability, and the Voltaire era introduces a treasury system to address governance. “

Smart contracts in Cardano differ from other blockchains in that developers can code self-executing smart contracts based on pre-programmed conditions. This allows developers and decentralized applications (dApps) to be more flexible. Emurgo, a blockchain solutions company, wrote:

“When these contracts are written to the Cardano blockchain, they offer the value of providing complete transparency to all contracting parties while being extremely secure and self-executing according to planned terms.”

The current move is largely technical

Although a number of important updates are planned for Cardano in the near future, no major updates have been announced during the rally period.

Technical analysts and traders predicted a major ADA rally in late December 2020. as a large market capitalization, cryptoassets rose in tandem.

30th of December Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, He believes Cardano will do well in the first quarter of 2021. Wrote::

“One of the platforms that will do well in the next quarter is likely to be #Cardano. The big ones are likely to run first, and this is definitely a big one. As long as it holds $ 0.11 (or $ 0.15), we’ll likely keep going . towards USD 0.27 and / or USD 0.40 “.

A combination of technical factors and expectations for the launch of functional smart contracts in 2021 is likely to have driven the ADA rally.

In the short term, analysts say large-cap altcoins like Cardano are likely to perform well as long as BTC consolidates above $ 34,000 and shows technical momentum.

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