The little-known digital token associated with the Cardano blockchain has just become the third largest virtual currency in the world.
And given that ADA reportedly surged by about 50% last week, there is growing optimism that new technological advances will allow Cardano smart contracts to be concluded by September. Such will enable the network to offer lucrative services such as DeFi.
Now, ADA token has a market value of over $ 69 billion, which is significantly higher than other cryptocurrencies except Bitcoin and Ether.
Nexo co-founder Anthoni Trenchev said Cardano fans have been waiting for smart contract news for quite a long time. Now, it is at battle with Ethereum in becoming the best blockchain to offer such services.
Also, the more than 1400% jump in ADA over the past year exceeds the returns on both Bitcoin and Ether.
It grew despite skepticism about its usefulness from some well-known cryptocurrency commentators. For example, Galaxy Digital CEO Mike Novogratz said he had asked many people but none have known nor supported the token.
Decentralized finance, or DeFi, brings financial functions to digital ledgers, allowing people to do things like lend or borrow funds, as well as earn interest in a savings account without the need for traditional intermediaries like banks. Its growing popularity is part of a broader trend of increasing blockchain use.
The rallies in Bitcoin, Ether, ADA and other tokens have helped the cryptocurrency market surpass $ 2 trillion over the weekend for the first time since May.
