Cardano has positioned itself to be among the fastest growing blockchain networks in terms of 24-hour transaction volume. This surpasses Ethereum and threatens to surpass Bitcoin. However, this high demand is accompanied by a soaring price.
Cardano’s total transactions have increased by 500%. They rose from around 5.5 million last March to 32 million this month. According to Google’s Cardano Blockchain Insights.
ADA, Cardano’s internal cryptocurrency, currently has a total market cap of $29.245 billion. It’s listed at the number 7. 7 spot in CoinMarketCap’s rankings of the leading cryptocurrencies.
ADA is currently trading at $0.871949, according to Coingecko’s chart.
Cardano TVL Up 25%
The digital token’s price also rose by 30% within the past week and over 20% in the last month.
DeFi LlamaCardano’s digital assets are now worth $3million, according to data. That is 25% more than the 24 hour period.
The Cardano Network’s potential still means that the digital currency will not be able to surpass its record high of $3.09, which it reached in September last year.
The ADA coin lost around 2% in its gains over the last 24 hour, and its trading price was $1.49 according to CryptoSlate.
Source: TradingView.com| Source: TradingView.com
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Project Launch, Less Fees
Blockchain analysis states that ADA’s recent surge can be attributed to the mainnet launch of SundaeSwap, a native, scalable decentralized exchange and automated liquidity provision protocol, last January.
Investors were attracted to this project for the Initial Stake Pool Offer (ISO), which allows Cardano holders to simplify their coins. After a time, they had a better chance of earning rewards.
This project aside, both Ethereum and Bitcoin were experiencing a decline in their network activity.
Bitcoin, Down
Bitcoin’s 24-hour volume was down by around 80% from its 3-month peak of $116 billion.
Meanwhile, Ether blockchain’s transactions have been decreasing since its three-month peak of $20 billion last December. On February 19, it dropped as low as 82% and as high as $4 billion for three months.
Analysts also believe that the reason for this increase is because Cardano transactions are much cheaper than Ethereum.
Here’s a context: While Cardano reached a new record in daily transactions and defeated Ethereum, Cardano earned less than $100k per transaction fee compared with Ethereum which made more than $40,000,000 in fees.
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Featured image taken from TradingView.com, chart by VOI