Have you noticed the new cool kid in the block called Cardano (ADA)? It’s now the 7th largest cryptocurrency in the world by market cap. It has risen 85% in the past ten days, and it might keep going up for the foreseeable future. Many crypto analysts believe that Cardano’s rise to the top of the crypto ladder was tightly linked to its Shelley upgrade.
For those who don’t know, Shelley mainnet upgrade would enable a delegation and incentives scheme, a reward system that can drive staking pools to a new high. Users in Cardano blockchain would be able to stake their ADA coins to get more ADA coins and to vote in the governance mechanism.
Many other blockchain platforms also adopt similar Proof-of-Stake consensus, but Cardano is considered much more unique due to its peer-reviewed academic papers and the influence of its founder, Charles Hoskinson, who was also the co-founder of Ethereum.
Not only about Shelley mainnet, but the ADA pump is also attributed to the explosion of the DeFi market in recent time. As we all know, DeFi protocols like Compound have been growing very significantly since June. People are still struggling to find a better blockchain for DeFi as the Ethereum gas fees become very high. Some speculators believe Cardano might be able to be the next big DeFi platform if they implement future developments perfectly.
Source: CoinTelegraph
