Cardano’s ADA has become the world’s third-largest cryptocurrency by market capitalization, according to CoinGecko, after its price surged 12% over the past day to a new 12-week high.
The cryptocurrency has enjoyed a steady uptrend since bouncing off of $1.00 support on July 19 and is changing hands at $2.03 as of 6:08 a.m. ET. In the past week, ADA’s price has swelled 46.5%, pushing the asset’s market capitalization to $65 billion, ahead of Binance Coin and Tether.
The rally is largely attributed to the mounting excitement surrounding the forthcoming roll-out of smart contract support on Cardano’s main network via the Alonzo upgrade, expected to occur before the Cardano Summit in September. Earlier this week, the project’s founder Charles Hoskinson said that he would reveal the official launch date on Friday, August 13.
The long-anticipated upgrade could help Cardano compete on equal terms with Ethereum, which supports the vast majority of decentralized finance (DeFi) applications, such as lending protocols and exchanges facilitating transactions without intermediaries.
“With the market having already digested news that Hoskinson will provide more color this Friday, the announcement itself poses the risk of being a classic “buy the rumor, sell the news” type of event that entices market participants to take profit,” writes Pete Humiston, manager of cryptocurrency exchange Kraken’s Intelligence research division. “Should that be the case, market participants ought to keep a close eye on $1.50 support.”
Bitcoin is trading in the green at $46,380. Other altcoins are also surging, with Ether, BNB, Polkadot and Uniswap returning 3-3.8% on the day.