Cardano (ADA) transactions exceeded $5 billion
Last week, while the price of cryptocurrencies was mostly “horizontal,” Cardano (ADA) managed to record an uptrend. According to CoinGecko, the value of ADA, often referred to as a competitor to Ethereum, has risen 30% in the last seven days, with crypto-assets such as Bitcoin, Ethereum, Solana and XRP up less than 5%.
The ups and downs in Cardano
There was a period of time when Cardano’s market capitalization was approaching $100 billion and was the third largest cryptocurrency on the market after Bitcoin and Ethereum. However, ADA has failed to hold its value and remains about 50 percent below its early September record even with current growth.
In addition to a large fan base, there is also a non-adaptive audience. According to Al Jazeera, Antoni Trenchev, managing partner of Nexo (the world’s most advanced regulated digital asset institution offering cryptocurrency loans), said:
“Critics of the Cardano (ADA) believe there is too much talk and not enough action.”
Cardano’s position as a competitor to Ethereum has been somewhat undermined by the rise of competing blockchains Solana and Avalanche in 2021, but there is clearly a passionate community pushing for success, otherwise ADA would not be in the top five cryptocurrencies.”
Could gas fees be a problem for Cardano?
Cardano traded $5.31 billion in 24 hours, with a gas fee of $75,400. The 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 $44 million.
According to Al Jazeera, Hayden Hughes, CEO of Alpha Impact (a social media platform for crypto traders), said:
“It’s easy to say that the NFT marketplace has found a way to gas transactions, and it’s the Cardano blockchain. Many argue that it’s only a matter of time before gas fees and congestion clog the Cardano blockchain and lead to high gas fees, but despite $5.31 billion in daily activity, we haven’t seen that yet.”
