Over the past week, while the price of cryptocurrencies has largely moved ‘horizontal’, Cardano (ADA) succeeded in gaining momentum. According to CoinGecko data, ADA, often described as an Ethereum competitor, has increased by 30% over the past seven days, noting that crypto assets such as Bitcoin, Ethereum, Solana and XRP have risen by less than 5%.
#cardano $island is the number two blockchain in transaction volume in the last 24 hours 🤯https://t.co/HaCzkGSnZL
— Lark Davis (@TheCryptoLark) January 17, 2022
The Ups and Downs in Cardano
There was a time period when Cardano’s market cap approached $100 billion and was the third largest cryptocurrency in the market after Bitcoin and Ethereum. However, ADA has failed to hold its value and remains around 50% below its record in early September, even at the current rise.
Besides a huge fan base, ISLANDThere is also a mass that does not adopt. As reported by Al Jazeera, Antoni Trenchev, managing partner of Nexo (the world’s most advanced regulated digital asset institution offering crypto loans), noted:
“Critics of the ADA think there is too much talk and not enough action.”
Cardano’s position as a competitor to Ethereum was somewhat hijacked by the rise of rival blockchains Solana and Avalanche in 2021, but obviously there is a passionate community eager to succeed, otherwise ADA wouldn’t be one of the top five cryptos.”
Could Gas Charges Be an Issue for Cardano?
cardano‘s 24-hour transaction volume was recorded as $5.31 billion, with a gas fee of $75.400. A gas fee is a payment made by users to compensate for the computing energy required to process transactions. Meanwhile, Ethereum’s trading volume was $5.59 billion, and the gas fee collected during the same period was recorded as $44 million.
As reported by Al Jazeera, Hayden Hughes, CEO of Alpha Impact (a social media platform for crypto traders), noted:
“We can easily say that the NFT market has found a way for gas to transact, and that is the Cardano blockchain. Many have argued that it is only a matter of time before gas fees and congestion clog the Cardano blockchain and lead to a high gas fee, but despite the $5.31 billion daily activity, we have yet to see that.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.