While Bitcoin goes down, Cardano reaches new heights
After reaching an All-Time-High (ATH) of over $58,000 per coin, Bitcoin (BTC) faced a pronounced correction that made the price fall by over 20% and counting. The reasons aren’t very clear, but the investors taking profits are a good bet. Meanwhile, Cardano (ADA) managed to get a new record this Saturday, with over $1.48 per coin. This is the first ATH for Cardano since 2018, unlike Bitcoin.
Additionally, Cardano is now the third cryptocurrency by market capitalization. This way, surpassing other long-established altcoins like Tether (USDT), XRP, Litecoin (LTC), and Chainlink (LINK). The good news might be due to its last update dubbed “Mary”, scheduled by March 1. Mary will enable the creation of native tokens and multi-asset support. That includes stablecoins, DeFi assets, and non-fungible tokens (NFTs).
“Developers, businesses, and applications can create general purpose (fungible) or specialized (non-fungible) tokens to achieve commercial or business objectives […] Because native tokens do not require smart contracts to transfer their value, users will be able to send, receive, and burn their tokens without paying the transaction fees required for a smart contract or adding event-handling logic to track transactions”.
Said characteristic might be very timely since the fees on Ethereum (Cardano’s main competitor) are higher than ever. The users welcomed the update by boosting the price of ADA by over 335% during the last month. We also added this coin for easy trading on Alfacash.
Will Bitcoin follow Cardano?
For now, Bitcoin is undoubtedly in the middle of a dip. But that doesn’t mean it’s going to be like that the rest of the year. Indeed, according to the analyst Willy Woo, the whole crash may have been caused by unreliable data. He’s referring to the information shared by the analytics firm Glassnode, in which a huge transaction of 40.000 BTC suggested a selling fever.
Worldwide investors and traders might’ve been influenced by this data and would’ve started to selling too. This, even though the initial conclusion was a mistake. The huge transaction wasn’t a great liquidation, but only an internal transfer in the exchange Gemini. Rafael Schultze-Kraft, CTO at Glassnode, confirmed this data to Woo.
Maybe that’s why the investment firm Stone Ridge just decided to buy the dip to diversify their portfolio. Besides, according to the website Bitcoin Treasuries, the institutional investments in Bitcoin now surpassed $44b in total. Firms like Tesla, Square, MicroStrategy, Grayscale, and Bitwise are included in this sector.
So, it seems like Bitcoin still has some nice perspectives ahead. Not to mention the adoption from Mastercard and BNY Mellon too. The current price decrease might be temporary, as it was after the last ATH in January.
Featured Image by energepic.com / Pexels
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Originally published at https://blog.alfa.cash on February 27, 2021.