Cardano (ADA) Mooning towards ATH - Why?

in #cardano2 months ago


Cardano ($ADA) has been mooning over the past week or so. Why has this been happening? Well there are three main reasons investors have seen this as an investment to move into.

1. HardFork Mary

The Cardano Blockchain is about to undergo an imminent upgrade. Towards the end of February the chain will undergo it's second hardfork and enable smart contract development for the first time. According to IOHK, the firm that represents the block chain, these smart contracts will be far superior to those on Ethereum:

By taking this approach, we are able to implement an efficient tokenization strategy that is superior to the ERC-20 and ERC-721 standards supported on the Ethereum blockchain Source

2. Grayscale Filing

On January 24, 2021, Grayscale Investments, a New York-based firm that provides institutional investors exposure to crypto assets via traditional investment vehicles, announced that it had added ADA to it's range of services. This has seen a 70% surge in ADA/USD exchange rate since the announcement

2. ADA Perpetual Swaps

Bitfinex announced that it will be launching ADA perpetual contracts with a 100x leverage. This will facilitate traders to hold long-term and settle their positions in Tether.

ADA traded at 0.02c in March 2020 and currently (at writing) is trading for 0.63c, a significant gain.
Screen Shot 20210207 at 2.57.32 pm.png

This recent price surge has seen ADA overtake XRP in total marketcap into 4th place overall. Price predictions have ADA pushing towards $1.20 in the coming months.
Screen Shot 20210207 at 3.00.49 pm.png

Thanks for reading.