The cryptocurrency market has been on a bull run lately and the coins continue to rally. On Wednesday, both Ethereum and Cardano (ADA) continued their rise to reach new highs. While, Ether climbed to USD 3,750, marking a new high after its fall, ADA added 10 per cent in the last 24 hours to trade at USD 3.03, which is the token’s highest ever position. While the Ethereum blockchain’s rise is caused by its latest update, Cardano’s rally to become the third-largest cryptocurrency in the world, in terms of market cap is majorly powered by its claim to be an environment-friendly cryptocurrency.
Why Ethereum is going up?
The Ethereum blockchain supports smart contracts and is arguably the most popular with developers building DeFi apps and creating NFTs (non-fungible tokens). The current hike in the Ethereum price is due to a recent technical upgrade. The ‘London hard fork’ which happened on August 5 is a precursor to Ethereum 2.0 ahead of 2022. The upgrade made some significant changes to the platform and potentially change the mining method of the cryptocurrency. ‘The London Upgrade’ or ‘EIP-1559’ saw the price of ETH shoot up and rally.
Ethereum’s latest spike after fixing the software bug causing a fork in the blockchain have been one of the best. Apart from the rally, investors buying back tokens after panic selling them during the crypto fall is also a reason along with the excitement over DeFi and NFTs. Ethereum hosts many DeFi products and NFT marketplaces and according to investor Kevin O’Leary of Shark Tank, DeFi apps is bound to replace financial intermediaries in the next few years. ETH is now averaging monthly gains of 50 per cent in 2021 and could esurpass the USD 10,000 mark easily by 2022, based on its current performance.
Why is Cardano going up?
Another token on the rise like Ethereum has been Cardano, which is nicknamed the ‘Ethereum killer’ by many investors. Over the past month, Cardano price has seen a sudden surge. The lowest price of the token was USD 1.2223 on July 27, 2021. Currently, the token is floating above USD 3, at its highest ever price. The sudden boom among crypto heads has made Cardano the third-largest cryptocurrency in the world, in terms of market cap.
The ADA cryptocurrency is currently going through an all-time high and is expected to surge to a greater extent in near future. There are a couple of reasons for the same, the first being that Cardano claims to be an environment-friendly cryptocurrency. Traders and investors have previously experienced a massive drop in the prices of the largest cryptos such as Bitcoin, based on lower environment friendliness.
Secondly, the crypto network is about the get a software update, which will enable it to compete against bigger rivals such as Ethereum. The update will introduce smart contracts to the network, making Cardano reach more potential investors. The software update might be launched in September 2021. During the recent crypto crash, Cardano showed a resilient nature and the prices did not fluctuate much.Â
Crypto market rallies
Apart from ETH and ADA, Dogecoin also rallied upwards by 10 per cent in the last 24 hours to trade at USD 0.30. The global cryptocurrency market capitalisation has been on the rise lately and is currently at USD 2.23 trillion, a 6.94 per cent increase in the past 24 hours. Crypto market leader Bitcoin also rose by 6 per cent in the time frame to trade at USD 49,000.
