Cardano (ADA), one of the largest cryptocurrencies, gained more than 20% in the first two days of February 2021. Where does the fuel for this rally come from?
Cardano (ADA) has experienced several technological improvements since early 2021. As these improvements were taking place, institutional investors began to take an interest in the Cardano.
Addressing why the price of the ADA is rising, this article will focus on four topics: the promise for Decentralization, Cardano for Defi, the news of Grayscale, and the growing ADA community.
A More Decentralized Approach
The Cardano team began staking operations in July 2020, switching to the Shelley era. In the first step of this process, it was decided to produce all blocks in the network under the leadership of the IOHK Foundation. The Plan was to make this staking mechanism more decentralized.
Cardano took more action on decentralized practice. On January 25, it was announced that Plutus playground had been updated. This platform allows Cardano developers to test their own written smart contracts.
Cardano developers are encouraged to work freely; smart contracts to be developed in Plutus playground can attract the interest of small and large companies, States, entrepreneurs, the Cardano community, and ADA investors. A Cardano developer mentioned that it could rival Ethereum in this form.
Cardano For Defi
Cardano (ADA) will bring its second hardfork, Mary, to life in February 2021. Cardano published an article that shows after the hardfork, the Cardano network would be interesting and useful for DeFi.
Cardano will become eligible for Decentralized Application (dApp) use after the upcoming hardfork. The Cardano community, which has played a major role in the growth of the project with its interest in the DeFi sector, expects positive developments after the hardfork.
Technical studies conducted under the leadership of the IOHK Foundation began to find a response before the investor. Grayscale, the world’s largest digital asset manager, has announced it will set up a fund for the ADA. ADA arrival on Grayscale’s Radar has put her in the limelight.
Growing Cardano Community
At the beginning of January, there were 201 thousand Cardano accounts. This number, which increased during the month, reached 295 thousand at the end of January 2021. In the same time period, the number of stakers increased from 113 thousand to 162 thousand.
More than 600 million ADA have been sent to Stake pools since new Year’s eve. Ada Pools data shows that in total, more than 22.2 billion Cardano have been staked. That number was 21.45 billion on January 1, 2021.
The IOHK Foundation is trying to strengthen Cardano’s position in the industry. Large companies in the Fortune 500 may face some payment problems in regions such as the Middle East and Africa. Charles Hoskinson, in an interview with Forkast, mentioned Cardano’s position in these areas and stated that ADA could solve the payment problems of top companies.
These and similar developments resulted in ADA price rising by 650% within a year. Cardano is the sixth largest cryptocurrency with a market capitalization of $ 13.3 billion.