Developed by IOHK, Cardano (ADA) surpassed XRP for the first time in terms of market capitalization. According to CoinGecko data, the ADA marketcap is worth $21.6 billion, and the XRP marketcap is worth $19.9 billion.
While many coins, including Bitcoin, have lost some upward momentum; the ADA price has risen more than 25% in one day. Looking at the charts, it can be seen that ADA price has increased more than 550% in the last three months.
This performance made Ada the fourth largest cryptocurrency. Founded in 2017, Cardano thus surpassed XRP for the first time in its history.
The hard fork, named Mary on the Cardano network, was successfully completed on February 3. This is one of the turning points representing the transition from Shelley to the Goguen era. After this hardfork, Cardano aims to strengthen his position in the world of decentralized finance (DeFi).
ADA price was in the $0.30- $0.35 range from New Year’s Eve to February 2. The day before Mary fork, it went above $0.40. This update, which is thought to make Cardano an ecosystem that supports many different assets, carried him up to $0.70. This update, implemented on the Testnet network, is expected to transfer on mainnet at the end of February,2021.
IOHK is trying to turn Cardano into an ecosystem that can support different projects and tokens simultaneously. Working towards tokenization, the team follows a different path than Ethereum.
Ethereum-based tokens that follow the ERC-20 or ERC-721 standard use smart contract technology. Cardano, claiming that this is a risky method, and aims to take a different path and compete with Ethereum. Elliot Hill of the Cardano Foundation team explains the difference between the two in the following words:
A smart contract is needed to use a DeFi token on Ethereum-based blockchains. Cardano-based tokens will be based directly on the mechanics of the Cardano blockchain, not on the smart contracts. Eliminating this need for smart contracts means reducing transaction costs and enhancing security.
Tim Harrison, an IOHK executive, says that this is a technology that is superior to standards such as the ERC-20. Charles Hoskinson, founder of the IOHK Foundation, thinks they will “kick Ethereum’s ass.”
The world’s largest digital asset manager, Grayscale, signaled in a statement that in the first week of 2021, it could set up a private fund for the Cardano. Different crypto assets such as AAVE, Cosmos, EOS, Monero, Uniswap, Polkadot were also named in the application.