While the price of Bitcoin has been suspiciously flat in the past few weeks, there have been rumblings in the altcoin market. Some coins have had big surges that are well explained — such as the Kyber Network aligning with the growth of DeFi. While there is also Dogecoin which is booming thanks to TikTok.
However, there is another top altcoin making a big impact — Cardano. The blockchain created by Charles Hoskinson, who was part of the team that brought Ethereum to the crypto space, has grown by 85 percent in the last 10 days alone. This has even pushed it beyond the market cap of Bitcoin fork, Bitcoin SV.
There are a number of considerations as to why Cardano is suddenly pumping, but most of the reasons seem to be based around good advances in the project. There has been a major upgrade known as Shelly, but there have also been market conditions that have suited Cardano and a growth in interest in DeFi where the blockchain can come into its own.
Big in the news
Cardano has also been in the news of late because of its major conference that occurred virtually because of the Covid-19 pandemic, but focused on the Shelley upgrade. In and around this summit, a node equipped with Shelley upgrade components was deployed onto the mainnet and by the end of the month the hard fork is due to occur.
Unsurprisingly, this major upgrade has had an impact on the price, but more directly, the staking system is also getting a boost which helios incentive ADA further. Cardano’s Shelley roadmap reads:
“Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption. As a proof-of-stake network, users stake their ADA to participate in the network.”
This upgrade is focused around decentralisation and it is expected to further this cause with more than 1,000 stake pools.
“Come the end of the Shelley era, we expect Cardano to be 50-100 times more decentralized than other large blockchain networks, with the incentives scheme designed to reach equilibrium around 1,000 stake pools.”
Additionally, the DeFI market has now surpassed $2 billion of total value locked in the protocols and this space is expanding rapidly. Because Cardano is well suited for DeFi, and because the CEO tweeted about the DeFi space — there may be some preemptive interest as well.