The latest Cardano news show that the price of ADA went surging 10 days ago, adding up even 85% to its price. With this, the coin surpassed Bitcoin SV and became the sixth largest cryptocurrency by market cap. Below, we are listing the reasons why Cardano (ADA) almost doubled its price in less than two weeks.
It all started when ADA increased from $0.074 to $0.137, adding more than 85% in less than two weeks. This is how the coin surpassed BSV and became the sixth largest coin by market capitalization.
The main three factors linked with the ADA rally include the new Shelley upgrade, the favorable market structure the coin has as well as the rapid growth of the decentralized finance (DeFi) marketplace.
Finally someone gets it https://t.co/cxR3aV9rAp
— Charles Hoskinson (@IOHK_Charles) July 7, 2020
The Reasons Why ADA Surged Start With The Important Shelley Upgrade
As we could see on July 1, one node equipped with the Shelley upgrade components was deployed on the ADA mainnet. By the end of the month (on July 29), these changes will be implemented on the Cardano network through a hard fork.
The new Shelley upgrade is said to be the main catalyst behind the growth of ADA in the cryptonews, and has had a significant impact on the price of the coin. Because of its staking system and the fact that Cardano is a proof-of-stake network, we can see that there are no miners.
Users who run nodes are maintaining the network by staking ADA. As the official roadmap of the Shelley upgrade notes:
“Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption. As a proof-of-stake network, users stake their ADA to participate in the network.”
In the roadmap, we can also see that by the end of the upgrade, Cardano is expected to become more centralized with more than 1,000 stake pools.
“Come the end of the Shelley era, we expect Cardano to be 50-100 times more decentralized than other large blockchain networks, with the incentives scheme designed to reach equilibrium around 1,000 stake pools.”
Growth Of DeFi Market And Price Explosion
The decentralized finance or DeFi marketplace has seen immense growth, especially on the ETH blockchain. As the Cardano founder Charles Hoskinson noted, Cardano could soon become a key player in this space. This tops the reasons why Cardano price surged by 85% in less than two weeks.
What we know is that the Cardano blockchain network is structurally efficient to handle large-scale DeFi applications.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]