The crypto market is in free-fall, but is it time to buy Cardano on the back of its continuing strength amidst the bearish storm?
Cardano’s ADA token traded as low as $1.07 today, showing a slump of 38% on the one-week chart in relation to Bitcoin’s 44%. The price has since recovered to currently trade at $1.61 down 4% on a week view.
It made a new all-time high of $2.39, climbing 20% in the 7 day chart before market correction. Cryptocurrencies gained predominance in an otherwise bearish market in 2020 following the impact of the pandemic.
Bitcoin, which served as the face of the emerging technology, crossed its previous all-time high of $20,000 and reached $30,000. It continued its rally into 2021 rising to a mouth-watering $64,000 in mid-April.
Other smaller cap cryptocurrencies, called “alternative coins” (altcoins for short) have also made a name for themselves with most posting phenomenal growth. Some saw 4,000% increase in a few months. Even the popular parody coin DOGE grew by over 12,000% since the beginning of the year.
However, most crypto assets have seen their growth tied to the fate of bitcoin. As such, a fall in the BTC price usually leads to a slump in all other crypto assets as well.
But in the past few days, some of these digital assets have begun to step out of the shadow of BTC. These contrarians have mostly been “green coins.”
Buy Cardano – ‘Green Coins’ The Next Hot Trend
Green coins are digital tokens that consume less energy in the validation of transactions. Bitcoin leads the pack in energy consumption due to its energy-intensive mining protocol called proof-of-work (PoW).
According to a report by the Cambridge Bitcoin Electricity Consumption Index, bitcoin utilises as much as 133.68 TWh of electricity annually, which is huge.
These whopping energy demands have since seen electric car manufacturer Tesla discontinuing BTC payments.
Green coins have thrived even as the general crypto market plunged 9% on Tesla’s announcement. Even as the broader crypto market saw about $300 billion worth of crypto assets drain out of the space, green coins like Cardano, XRP have continued to perform.
XRP is another green coin that has been a revelation in 2021. The Ripple token uses 0.0079KWh per transaction, while Bitcoin consumes as much as 707KWh, according to TRG Data Centers.
Cardano, which has been dubbed the “Ethereum killer,” is a crypto protocol that seeks to build a better blockchain solution than Bitcoin and Ethereum. The Cardano network, which is faster and more scalable, has seen positive price action because of its otherwise environmentally-friendly consensus protocol called Ouroboros.
Meanwhile, the number of Cardano millionaires has surged. Per research from UK news agency Finbold, the number of Cardano millionaire investors surged to 6,710 from 504 – a 1,231% increase. This is a jump from the figures in January 2021, where they were just 504 wallet addresses worth at least $1m.
Alongside this, the number of active ADA wallet addresses rose to 417.81% between January 1 and April 28, 2021.
Speaking on the digital token’s new found resurgence, Finbold said that ADA’s 1,040% increase in the highlighted period was a contributing factor.
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