The glory of conquering the title of the world’s third-largest cryptocurrency was short-lived for BNB, Binance’s native cryptocurrency, as a new rival dethroned it: Say hello to Prince Cardano!
After a few weeks of spectacular price performance, ADA, the native cryptocurrency of the Cardano blockchain, managed to challenge the markets and raise its price during a bloodbath caused by bitcoin’s largest price drop in history, dethroning BNB in the process.
Cardano (ADA) Is Laughing at the Markets
Currently, ADA has a market cap of $39.6 billion, almost $4.5 billion more than BNB, which now has $35.1 billion at the time of writing.
The Cardano ecosystem has much to celebrate. The cryptocurrency is up 18.76% in the last 24 hours and over 30% in the last week. The figures are in stark contrast to its competitors; for example, Bitcoin has depreciated by 15% in the last week, and Ethereum by 22.8%.
BNB is also following the general markets trend, losing about 22% over the last seven days, paving the way for ADA’s uptrend to knock it out of the list of the three largest cryptocurrencies.
As shown in the graph, Cardano (ADA) has reported a major growth in the last 24 hours. A 17% appreciation looks atypical from a technical analysis standpoint, but fundamentals could have an explanation.
Cardano Will Have A New Language
Today, Cardano got closer to a new milestone. The technology startup MuKn and IOHK – the company responsible for the development of Cardano – announced a partnership aimed at developing a language that optimizes the execution of smart contracts on the blockchain.
Glow is a domain-specific language that will allow easy development of dApps on Cardano. Theoretically, this language will make dApps more secure and less complex. According to Francois-Rene Rideau, Co-Founder of MuKn, the partnership with Cardano facilitated the development process of this language:
“Writing a DApp is the single hardest thing to do, because you can’t afford any mistakes … Existing developer tools didn’t measure up to the task of creating secure DApps in this adversarial environment, so MuKn decided to create those tools with Glow. IOHK is a great partner for us because both companies are founded on the principle of thinking in the long term rather than what only works for today. We want to build on stone, not quicksand.”
According to IOHK, another critical aspect of Glow is its interoperability-oriented approach:
“The language is said to be portable and once an app is built, Glow can be used on other platforms. Meaning developers will be able to choose a blockchain based on value proposition, rather than being limited by programming language.”
New Invenstments Could Also Contribute to the Price Spike
Also, Cardano is increasingly on the radar of major investors. Grayscale recently announced that it was exploring 23 tokens, including ADA. Originally focused on a few coins (XRP was left out due to regulatory issues) Grayscale is adding Aave (AAVE), Basic Attention Token (BAT), Cardano (ADA), Chainlink (LINK), Polkadot (DOT) Compound (COMP), Cosmos (ATOM), Decentraland (MANA), EOS (EOS), and MakerDao (MKR) to its portfolio.
The idea is to provide more opportunities for risk diversification and exposure to new tokens and technologies to traditional investors.
Besides, several hedge funds and venture capitals are also buying ADA to fund it for at least the medium term. Dubai-based FD7 Ventures, a global crypto investment fund with $1 Billion USD under management is one of the funds taking this approach.
FD7 Ventures revealed it would be selling $750 million of its BTC holdings in order to diversify its portafolio with Polkadot (DOT) and Cardano (ADA).
“Aside from the fact that Bitcoin was first to market and society has given it meaning as a store of value, I think Bitcoin is actually pretty useless,” Said Prakash Chand, Managing Director at FD7 Ventures, adding that Cardano was one of the projects that they consider as” the foundation of the new internet and Web 3.0″.