Cardano’s ADA Explodes 19% as Bitcoin Stagnates, NFT Craze Booms

Cardanos ADA was among the best in the cryptocurrency market this week as traders assessed their bullish outlook against a stagnant top rival Bitcoin and an ongoing craze for non-fungible tokens or NFTs.

The blockchain asset jumped to third place after a price rally of 19 percent. As of 1057 GMT, the ADA / USD exchange rate was approximately $ 1.24. The pair opened the week at $ 0.95, according to data from Binance.

ADA’s recent surge has seen its year-to-date gains jump around 600 percent. Meanwhile, year-over-year returns rose to a massive 4,656 percent, outperforming Bitcoin, Ethereum, gold, and even the global stock market in the period when local governments and central banks around the world were massively injecting fiat money.

But…

… The type of rally for the Cardano token was speculative in nature. Co-founder of research firm Coin Metrics, Nic Carter, expressed disbelief at the ADA rally, stating that Cardano hadn’t launched a single project on its blockchain that could confirm its popularity.

“I’m really confused about why it’s getting popular,” noted Carter.

Many analysts believe that Cardano has mostly benefited from the limitations of its blockchain rival Ethereum. Recently, the second largest blockchain network has become too costly for its users, including developers running billions of dollars’ worth of decentralized finance projects on its public level. In some cases, users paid a $ 30 transaction fee to send just $ 5.

Cardano is rebounding after falling 38.5 percent from its all-time high of $ 1.54. Source: ADAUSD on TradingView.com

Cardano projected itself to be a viable alternative. In retrospect, the project enables users to create smart contracts, decentralized applications, and protocols over the blockchain. It projects itself as a more scalable and secure version of Ethereum via the underlying proof-of-stake algorithm, which makes it easier for users to conduct transactions cheaper and faster.

Ethereum works according to an energy-intensive proof-of-work protocol. However, the blockchain is to be converted to proof-of-stake by the end of this year.

Overall, the growing rivalry has contributed to Cardanos ADA growing exponentially over the past few months.

Unsafe Bitcoin, NFT Craze

Further tailwinds for the ongoing price boom in Cardano were due to a stagnating Bitcoin and an ongoing craze for NFT.

Bitcoin has seen a major correction after hitting a record high of over $ 61,000 over the weekend. Part of the correction resulted from a higher profit-taking rating. Uncertainty in the global market, led by tension over the outcome of the Federal Reserve’s two-day political meeting, continued to hold Bitcoin from expanding its short-term bullish bias.

Cardano recovers up to 32 percent against Bitcoin. Source: ADABTC on TradingView.com

ADA is up about 20 percent versus Bitcoin in the past 24 hours, showing that merchants have decided to park their funds on the Cardano market as it is bullish in the short term. This could be due to Cardano’s “Mary” update which allowed users to create their unique tokens, including NFTs. These are digital files that represent ownership of a specific asset.

It has become the newest crypto craze. In one instance, a creator sold his JPEG file for about $ 69 million. So it appears Cardano has benefited from its involvement in the NFT space.

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