The cryptoverse is back to its red days. No thanks to China’s clampdown, Elon Musk’s newfound ‘green’ love, and the millions of short-term ‘panic’ investors pulling the red carpet from under cryptocurrency’s feet at the first honk of the dip horn.
BTC took a hit, plunging -50% lowest in a four-week value run to dock at $32,514. Ether, currently at $2243.97, has lost over $1,000 in price value barely seven days after the all-time high breakthrough. BNB, XRP, DOGE all registered shrinking crimson values but it’s a minimally impactful loss for ADA.
Like the eye of the storm, Cardano ADA stood exceptionally calm, tightly wrapped around with its Proof-of-stake ‘airbag’, to many analyst’s surprises, as it swam fiercely against down-trending currents to cross an ATH finish line.
What’s ADA’s Secret?
Well, it’s not essentially a secret nor is it news that ADA uses a remarkable environmental-friendly proof-of-stake consensus mechanism.
This technology helps create new ADA coins by utilizing voluntary donations from willing ‘stakes and rewarding their contributions afterward. The POS is a green-based efficient mining system that cuts back on energy, driving ADA’s coin creation cost down to just about 1% of what Bitcoin expends.
How Does This Translate To Gains For ADA?
Seeing that the latest crypto ‘depression was spurred in part by concerns about the impact of energy-intensive mining on the environment, ADA, by its POS system, has positioned itself to receive new investors seeking to switch to long-term energy-efficient cryptocurrencies.
This is partly the reason why ADA got surges while the rest got slides. ADA is not the only POS-based coin, but it is inarguably, the biggest.
…And The $100 Billion Market Cap?
After BTC and ETH, the next five biggest coins – USDT, BNB, XRP, ADA, DOGE – are battling in a race to cross the $100 billion market cap. They all currently sit within a range of $45B – $60B, with each amplifying Its unique features to woo users.
While the USDT is pegged to the USD and unperturbed by a slow and steady pace, XRP is frantically seeking to be let off the shackles of a draining US-SEC lawsuit. Over 70% of BNB’s relevance is tied to its use on the native Binance platform, and Elon Musk is DOGE’s only oxygen.
Only ADA stands lofty and promising with its giant strides in revolutionizing education in Ethiopia and bringing telecommunications access to Tanzania. Being the first coin to set sail on the black continent, its prospects are huge and success in East Africa could open more partnerships across the continent leading to more added value, and eventually, an organic market cap upshot.
Already ADA has created 6,000 new millionaires since its 1000% value upshot over the past five months.
It would come as no surprise if the ‘Ethereum killer’ eventually crosses the $100B line before others. The only question is: how soon?