As a result of the increasing demand for DeFi tokens and services, the ADA digital token from Cardano became the world’s third-largest cryptocurrency on Monday. The calculation was based on the token’s market capitalization, and it had a value of $2 at that time. At the time of writing, the token has been pushed to the fifth position due to the market cap increase of USDT and Binance Coin. Investors are excited about the new changes coming to the Cardano blockchain, especially the full support for smart contracts and DeFi apps.
According to the developers behind the Cardano network, the skyrocketing demand for an alternative DeFi space can be leveraged. Ethereum dominates the current space, but it is often criticized for its scalability issues. On the other hand, Cardano’s upcoming DeFi space is expected to offer better speed and usability. The company has set the date September 12 to start offering various DeFi services. As per industry experts and analysts, Cardano enthusiasts have been waiting for the platform to enter the world of smart contracts. Indeed, the lucrative nature of DeFi services is a major reason for the anticipation.
Although Cardano is not a household name like Bitcoin or Ethereum, the Cardano platform, and its ADA token are apparently giving a tough fight to Bitcoin and Ethereum. The journey of the platform seems to be a testament to two things. First, users in the crypto space are looking for faster and user-friendly alternatives to big names like Ethereum. Second, even though it may seem simple, new platforms and projects like Cardano seem to contribute to the increasing popularity and the total market value of cryptocurrencies. For instance, the crypto market value could not have possibly reached the $2 trillion mark without the growth of the ADA token.
Moreover, considering that Decentralized Finance will become a part of the Cardano network in just a few weeks, the market capitalization of the cryptocurrency is expected to rise further. Therefore, investors seem to be less bothered that ADA has fallen to the fifth position. Nevertheless, it does not mean that investors could be completely confident about the bullish movement of ADA, especially considering that several factors affect the value of the token. For instance, market sentiment in the entire crypto sector can be a deciding factor.
Investors optimistic about the Cardano network believe that the value of the ADA token is highly likely to cross the $2.45 mark in the coming few weeks. The launch of DeFi services is slated to play an essential role in deciding the value-change patterns of the token. As mentioned, however, even a minute change in the market sentiment may turn this deal upside down. On the bright side, if more buyers happen to be interested in ADA, it could potentially cross the $2.45 mark and retain the position it has lost to Tether and Binance Coin.
