Cardano’s ADA token is up 30 percent over the past seven days, according to CoinGecko.
Through Bloomberg
Released January 17, 2022
Cardano’s ADA token has surged over the past week, even as Bitcoin and Ether traded sideways amid some promising developments on its blockchain.
ADA is up 30% over the past seven days, according to CoinGecko price data, while Bitcoin, Ether, Solana, and XRP are up less than 5%. Data from Messari shows Cardano’s 24-hour transaction volume is $5.31 billion compared to Ethereum’s $5.59 billion. But Cardano’s gas fees — payments made by users to offset the computing power required to process transactions — were around $75,400, compared to Cardano’s $44 million during that period.
“One could easily argue that the NFT market has found a way to transact in an easy way and that is the Cardano blockchain,” said Hayden Hughes, chief executive officer of Alpha Impact, a social media platform for crypto traders. “Many have argued that it’s only a matter of time before gas fees and congestion clog the Cardano blockchain and lead to high gas fees, but despite $5.31 billion in daily activity, we haven’t seen that happen.”
Just starting Lark, it’s only January https://t.co/ToJ923QOAk
— Charles Hoskinson (@IOHK_Charles) January 17, 2022
Cardano has seen its ups and downs over the past few months. For a time, it was the third-largest cryptocurrency, surpassed only by bitcoin and ether, reaching a market value of nearly $100 billion amid optimism about the addition of smart contract capabilities. However, it has since fallen and is about 50% below its record from early September, even with the recent rally. While Cardano has an avid following, it also has detractors. Mike Novogratz, the CEO of Galaxy Digital, wrote on Twitter in August, “I spoke to twenty of the smartest people I know in the world and none of them saw Cardano take hold with developers.”
“The critics of ADA say that there is too much talk and not enough action,” said Antoni Trenchev, managing partner of Nexo. “Cardano’s position as Ethereum’s nemesis has been somewhat usurped in 2021 by the rise of rival blockchains Solana and Avalanche,” he said, but “there’s clearly a passionate Cardano community that’s bent on succeeding, otherwise it would be not a top 5 crypto.”
According to Vijay Ayyar, Head of Asia-Pacific at Luno Pte.
Trenchev agreed, citing the metaverse and decentralized sharing as reasons for the excitement.
“The planned launch of the first DEX – decentralized exchange – on the Cardano blockchain comes after it has already established a presence in NFTs,” Trenchev said. “To top it off, Cardano steals some attention from Decentraland and The Sandbox with news about the first Cardano metaverse (Pavia.io).”
