Cardano freaks Solana: three reasons behind the price growth
2 min read
Charles Hoskinson announced the development of the Plutus application backend back in October. Is the expansion now bearing fruit in the form of the rising share price?
Charles Hoskinson returns from Africa, his yaks have multiplied and the Cardano course makes leaps in the air. Last week the Solana Community celebrated its overtaking maneuver, now the ADA supporters feel confirmed in their actions: Cardano is back in fourth place in the ranking of the largest digital currencies in terms of market capitalization. In the last 24 hours alone, the price rose 11.78 percent and is trading at $ 2.28 at the time of writing. That took Cardano’s market cap to $ 75,424,313,230. At the time of going to press, that’s less than a billion dollars off Solana. The head-to-head race between the two cryptocurrencies with similar application options is therefore gaining momentum.
Cardano Growth: What Was It?
Now you can ask yourself once again: What was the reason? As reported in today’s BTC-ECHO market update, the prices of BTC and in the entire crypto market are currently rising. One could therefore assume, on the one hand, that the market is “pumping up” and that the optimistic investment mood of investors is finding buyers across tokens.
Cardano builds bridges
Another explanation is one that Hoskinsons announced on October 18 in a nearly ten-minute video that he posted on Twitter: the introduction of the Plutus Application backend (PAB). This is the part of the network that should ensure that developers can easily interact with smart contracts in the future. This is to ensure that bridging to all decentralized applications (dApps) will take place smoothly in the future. This means that it should be possible to switch between the individual blockchains quickly even when there is a high demand.
As announced in mid-October, Cardano is currently working on interoperability. There may be some investors who would like to benefit from the widespread rollouts of the future and who have now filled their pockets before going live.
Influence of blockchain projects from Africa
A third thesis could be that the first on-boarding measures by African countries on the ADA blockchain are already bearing their first fruits. As BTC-ECHO reported, Charles Hoskinson undertook a journey of several weeks through African countries and laid the foundation for rolling out large-scale projects on the Cardano blockchain in cooperation with governments and start-ups, such as digital identification documents on Distributed Ledger Technology (DLT). Schoolchildren in Ethiopia have been able to prove their school career for months using Atala PRISM on the Cardano blockchain.
