- Cardano(ADA) reached a new all-time high of $2.4 as per CoinMarketCap.
- The launch of “Alonzo Testnet” is a major cause for the recent price surge in ADA.
- Another reason for the rise in price is energy consumption
Cryptocurrency Cardano (ADA) has reached a new all-time high of $2.4as per CoinMarketCap. However, CoinMarketCap is the world’s most-referenced price-tracking website for cryptocurrency.
Cardano is a decentralized third-generation proof-of-stake blockchain platform. Cardano’s digital currency is ADA. The peer-to-peer transactions can be facilitated by Cardano.
In the past 2 months, Cardano (ADA) has been coming on top among other competing blockchains. The surge within the coin comes amidst a bearish market following the news of Tesla suspending its bitcoin payment option as a result of energy concerns.
Cause of Price Surge in ADA
The long-anticipated launch of “Alonzo Testnet” is a major cause for the recent price surge in ADA. Cardano aims to compete with Ethereum (ETH). However, ETH is the number one smart contract cryptocurrency network is Ethereum. Even though Tesnet has not yet launched, its ecosystem system is growing widely with several listings in many companies. Some of them are, Polyswap, Cardax, ERGO, Fluree, and so on. These companies already listed on the Cardano smart contract platform and are ready to do business.
Investors are paying as high as $700 in Transaction fees as a result of high congestion in the Ethereum Network. So there will be no surprise if the investors migrate from the Ethereum network to the Cardano blockchain, after the launch of Cardano Testnets.
Furthermore, another reason for the price rise is energy consumption. Elon Musk the CEO of Tesla has suspended Bitcoin for its high energy consumption, and the CEO said, the company looking for a cryptocurrency that its energy must be 1% less than the bitcoin.
Moreover, TRG Datacenter reported, ADA consumes 0.5479 kWh per transaction, comparatively this less than the bitcoin which consumes 707 kWh per transaction. This makes ADA an expected cryptocurrency choice for Tesla.
Notably, this makes ADA set a force in the cryptocurrency world. Further, it currently ranked number 4 by market capitalization.
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