Strong surge in the DeFi activity and the development activity on the Cardano blockchain has further supported a rally in the ADA price.
Amid the crypto market relief rally, Cardano’s native cryptocurrency ADA has been a clear outperformed among all altcoins. The Cardano (ADA) price is up 30% over the last 24 hours moving all the way to $0.66.
ADA Price Rally
With a market cap of $22 billion, Cardano’s ADA now topples Ripple’s XRP to become the sixth-largest cryptocurrency. This was a much-needed relief for ADA investors after a brutal crash earlier this month. Earlier in May during the crypto market crash, the ADA price collapsed to a low of $0.40. However, it has recovered more than 50% since then.
There have been a few good reasons behind this ADA price surge. However, the primary reason has been the surge in the DeFi activity taking place on the Cardano blockchain. The DeFi activity on the Cardano blockchain shot up after Iagon announced the launch of the Ethereum-Cardano token bridge. “We believe that our solution powered contributes Cardano development & growth,” tweeted Lagon.
This cross-chain bridge will facilitate the easy transfer of the USDC coins across the two networks. The USDC is the second-largest stablecoin in the world and its presence will give a major boost to Cardano’s DeFi ecosystem.
Cardano introduced DeFi capabilities to its blockchain last year with the Alonzo hardfork in August 2021. Furthermore, the Cardano blockchain has also started hosting non-fungible tokens (NFTs). The total number of NFTs minted on the Cardano blockchain has surpassed 5 million.
Cardano Development Activity Hits ATH
Another major catalyst to the surge in the ADA price has been the development activity taking place on the Cardano blockchain. As per on-chain data provider Santiment, the Cardano blockchain network activity has touched new all-time-high levels. The data provider notes:
Cardano is one of many #altcoins that have enjoyed a great start to the week, currently +13% in the past 24 hours. Development activity has hit #AllTimeHigh levels, as $ADA’s team worked on innovating while prices were suppressed.
Amid all the regulatory buzz surrounding the recent crypto market correction, Cardano clears its stand. Cardano founder Charles Hoskinson recently said that they will focus on only doing regulated business. For this, he will continue to engage with organizations such as the DC and the blockchain association. During his recent live interaction, Hoskinson said:
“The Cardano ecosystem is going to be engaging and have a desire to do regulated business whether it be a security token offering, whether it be regulated, or whether it be legacy financial institutions like banks adopting the protocol and want to maintain their charters.”
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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