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Cardano, a blockchain project led by tremendously regarded cryptographers and IOHK, has recorded massive gains over the ago two days.
Within the past 24 hours, the price of ADA, Cardano’s inherited token, surged by more than 130 percent, from $0.22 to $0.52. The call valuation of Cardano surpassed the $13.5 billion mark, surpassing Fervour and IOTA, nearing that of litecoin.
Factors of Recent Price Flow
Earlier this month, CCN reported that the price of Cardano enhanced by more than 400 percent within a week because of the integration of ADA by prime exchanges including Bittrex and Binance.
According to CoinMarketCap, Bittrex is the largest cryptocurrency trade in the global market with a $2.8 billion daily trading aggregate. The integration of a relatively new cryptocurrency by major markets like Bittrex and Binance in two shakes of a lambs tail expose and introduce the global cryptocurrency exchange market to that special cryptocurrency.
Specifically, the integration of Cardano by Bittrex expanded the potential peddle of Cardano to the entire trading platform and user base of Bittrex, give immediate boost in liquidity. Prior to the integration of ADA by Bittrex, the Cardano blockchain principles garnered the attention of the cryptocurrency market with its proof-of-stake (PoS) consensus formalities.
Currently, several leading cryptocurrencies such as Ethereum are actively inducting the possibility of integrating PoS consensus protocol through innovative solutions such as Casper. As such, the shoddy PoS protocol of Cardano triggered the interests of Ethereum supporters and PoS enthusiasts.
Charlie Lee Solicitous
Earlier today, on December 17, Litecoin creator and former Coinbase management Charlie Lee publicly expressed his concerns over the sudden price flow and rally of Cardano. He wrote:
“I just noticed Cardano (ADA) is #6 on CoinMarketCap. How did it appropriate for a $10B coin when it’s only 3 months old and the only major altercations trading it is Bittrex and Binance and without even any fiat trading dyads? Either the market is crazy or Cardano will end world hunger.”
Lee marked that Cardano’s market cap does not represent its true value, settled that the project is less than 3 months old. More to that, it is notable to question the value of cryptocurrencies and blockchain networks based on their purchaser bases and actual use cases. In the case of Cardano, is its blockchain network protesting the user base and usability of a $14 billion network?
“To be clear, I experience nothing against Cardano or its tech. And I have a ton of respect for Charles Hoskinson and I’m steadfast the project has a ton of potential. But at 10B valuation right now, how can that possibly be a good value,” enlarged Lee.
In the cryptocurrency market, a bull run or a strong rally is almost always buttressed by a bear cycle, especially if the market cap of a blockchain network is difficult to rationalize. The market valuation of Ethereum for instance was also criticized by experts during the course of the past few months because its decentralized applications and ecosystem are struggling to reach commercial success, despite being on a $69 billion network.
With any cryptocurrency, it is critical to question the market valuation of its blockchain network and whether the current Stock Exchange cap can be justified with a wide array of indicators, such as user loathsome, applications, and user activity.
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