Cardano (ADA) was largely forgotten in the past months, but now, the coin is showing strong signs of recovery, as Bitcoin reclaimed the $6,600 positions. ADA moved toward $0.16, at one point adding 15% net for 24 hours. ADA has been recovering since the beginning of the month, but so far, the pickup in volumes has been tentative.
!Cardano!
Still, ADA is up more than 23% in the past week, becoming the biggest gainer among top 10 coins on CoinMarketCap. One of the reasons behind the rally is that ADA is an asset paired with Tether (USDT). In the last cycle of selling, many traders waited out the crash in fiat-like positions, and may be returning now to pick up the new rising trend.
The Cardano project saw immense hype in December, but now, the organization is still in the community building stage. ADA runs on its own blockchain, but the second layer for smart contracts is not ready yet. The risk for Cardano is that the results may be overhyped, and the project may compete with similar claims from other platforms.
In the past months, platform coins were seen as promising - but the skeptical opinion is that distributed apps have not proven their success. Platforms like NEO, QTUM, Stellar, but also TRON and EOS are yet to show their ecosystems are feasible for distributed apps.
Cardano lines up with projects like Tezos, for a relatively delayed launch of the distributed app ecosystem. In the short term, the ADA asset will enjoy renewed interest, and grow a strong community. But there are no substantial updates from the project’s team lately, relying instead on popularizing the Cardano concept on conferences and meetups.
https://twitter.com/cardanocom/status/1013793211314294784
The ADA digital asset is also largely unpaired from Bitcoin, with more than 36% of trades happening against the USDT digital asset, with a strong concentration on Binance. ADA remains risky because of its limited trading profile, and the support from Korean Won speculation has withdrawn.
This article appeared first on Cryptovest
