A rockstar decided to put a major bet in cryptocurrencies. Ideally, anybody could have preferred Bitcoin, the world’s leading digital asset, as their gateway to enter the emerging crypto space. Nonetheless, the rockstar chose a rival asset known as Cardano (ADA).
The sixth-largest blockchain project by valuation did not receive much attention from mainstream finance news portals despite surging by a little over 5,900 percent since March 2020. Nonetheless, it managed to enter the investment portfolio of Gene Simmons, the famous bassist of Kiss. The artist provided a simple explanation for snubbing Bitcoin over Cardano’s ADA.
“Why did I buy Cardano (ADA),” Mr. Simmons tweeted. “Well, for one thing, it’s affordable to almost everyone. It’s pennies compared to my other holdings like Bitcoin, which is over $50,000 a single coin. I believe everyone should be able to afford cryptocurrency. And here is one I believe in.”
A celebrity’s involvement in the ADA market promised to provide tailwinds to what has already been a supersonic year for the cryptocurrency. The token’s rate surged by more than 464 percent in the first 42 days of 2021, hitting a three-year high of $1.02.
Later, ADA/USD started consolidating sideways, proving that its intentions are least about pursuing a downtrend. The pair was just waiting for bulls to reappear once again while keeping bearish pressure at an arm’s length.
It still is.
All-Time High for Cardano Ahead?
Cardano’s sideways momentum persists at a time when most of its peers have established their record highs. The ADA/USD rate touched its record high of $1.40 during the heights of hype-led initial coin offering mania in January 2018. It is 36 percent away from the 2021 peak of $1.02.
ADA/USD expects to hit its record high after three years—and maybe, set up a new peak level as other overbought cryptocurrencies, including Binance Coin and Bitcoin, correct lower.
Fundamentals support an upside scenario. The transaction fees on the Ethereum network has surged to irritatingly high levels. In some cases, users have complained about having to pay more than $30 to even send a $5 worth of ETH transaction. That makes the platform infeasible for decentralized application projects running atop the Ethereum protocol.
Binance’s native token BNB rallied by around 120 percent in just five days as its blockchain posed serious competition to Ethereum.
Likewise, Cardano is scheduled to undergo a major upgrade that would bring smart contracts functionality to its blockchain. The protocol would thereby start supporting decentralized finance to rival Ethereum by the end of February.
For all it seems, Cardano’s ADA looks poised to cash on the fundamentals to mark another upside breakout.