The ADA crypto token, native to the Cardano blockchain network, rose over 14 per cent on Wednesday, data from CoinMarketCap revealed.
The token was trading at $0.475 at its lowest during the last 24 hours and it whizzed to $0.5442 at around 1:30 PM IST. The cryptocurrency rallied 14.56 per cent intraday, CoinMarketCap data showed.
The token was trading at $0.5281, up 10.23 per cent at 14:40 IST, with a live market cap of $17,752,043,309. The 24-hour trading volume of the cryptocurrency was $1,653,415,876 up 7.68 per cent.
The ADA token has circulating supply of 33,739,028,516 ADA coins and a maximum supply of 45,000,000,000 ADA coins.
Cardano blockchain’s ADA token surpassed Binance’s stablecoin BUSD and Solana’ blockchain network's SOL to become the seventh most valuable cryptocurrency by market cap.
Why is Cardano booming?
The rally in the ADA token can be attributed to the increased interest in the Cardano blockchain because of the upcoming Vasil hard fork. The upcoming hard fork, which would result in a network upgrade of the blockchain has pushed the price of ADA up. After the network upgrade, the blockchain’s scalability will improve. Moreover, the efficiency of the network will also significantly improve.
Do hardforks always cause booms?
Traders and crypto markets commentators have stressed that hard forks in the Cardano network result in rallies in the value of the crypto token. Crypto influencer Dan Gambardello stressed on this while showing the pattern on the candlestick graph of the ADA token.
What is a hard fork?
Hard fork in blockchain technology refers to a significant change in the network's protocol. The change validates previously invalid blocks and transactions, or vice versa. In simple words, a hard fork takes place when the nodes of the most recent version of the blockchain network do not accept previously added information, bringing about a permanent change in the structure of the network. It is interesting to note that the Vasil hard fork is a much-awaited scalability upgrade that will significantly boost Cardano throughout.
Also Read: Why is MATIC on a gaining spree? 5 reasons - BusinessToday