Cardano (ADA) Price Picks Pace in Long-Awaited Rally
The asset got a boost from news of a recent mainnet upgrade leading closer to the completion of the consensus protocol.
Cardano (ADA) is heating up again, achieving a rally that has been awaited for months as the asset lingered near its lows, almost returning to levels not seen since the initial token sale. ADA traded at $0.066 as of 10:30 UTC on Wednesday, rallying in the past three months from lows of $0.039.
ADA has been largely dismissed as other assets took the spotlight. The project remains promising but is yet to show its achievements in hosting smart contracts and distributed apps. While Cardano lingered in creating a usable ecosystem, other projects are gaining real-world users.
The current ADA rally is highly dependent on Binance trading, as data from CryptoCompare show more than 64% of the activity is concentrated on the leading exchange. ADA also sees more than 45% of its volumes against Tether (USDT), representing a significant source of liquidity.
The boost for ADA came from the announcement of the 1.5 mainnet version launch this month. The Cardano project is yet to go through several stages of development, as the upgrades are dedicated mostly to ensuring a robust and innovative consensus mechanism. ADA will remain a proof-of-stake coin, searching for security that matches minable networks. The coming upgrades will have to bring a new state of the network, called Ourobouros Genesis, which would be the proper condition of the completed Cardano network:
“Ouroboros Genesis is a major upgrade to the protocol that underpins Cardano because it is first proof-of-stake protocol that matches the security guarantees of proof-of-work protocols such as Bitcoin,” the project announced on its blog.
However, at this point, the Cardano network is still lagging far behind the likes of EOS, TRON (TRX) and Ethereum (ETH), where development has allowed for real-world cases. Currently, the Cardano network carries a relatively small number of transactions, from 1 to 4 transactions per each 1-minute block, meaning that some of the blocks may only be used to carry the discovery reward.
However, coin fundamentals sometimes hardly affect market prices, and the awakening of ADA during what seems like an altcoin season may lead to an extended rally.