With a fresh record high in his luggage, Cardano is heading towards the hard fork Alonzo with a broad chest. Meanwhile, staking is booming at Ethereum, where the consensus switch could come earlier than expected. The market update.
The crypto market is moving forward this weekend. The total market capitalization has risen by around seven percent on a daily basis and has thus again put on a thick coat of 100 billion US dollars above the 2 trillion mark. Bitcoin, the workhorse, has made a 6 percent price jump and is trading at $ 47,070 at the time of going to press.
With the exception of Solana (SOL), where profit-taking missed the first setback on the price rally of the past few days, the entire top 10 is turning into positive territory. The price increase for Dogecoin (DOGE) is even comparatively small at six percent. Ethereum (ETH) and Binance Coin (BNB) are up just over seven percent, while XRP and Polkadot (DOT) have risen by 10 percent. But a coin steals the show from everyone today.
Cardano (ADA) at all-time high
Cardano (ADA) is unstoppable and today hit a new record high of $ 2.54. In the past 24 hours alone, the third largest cryptocurrency by market capitalization has risen 17 percent. In the 30-day trend, the ADA rate is up 134 percent.
The rally is due to the approaching upgrade Alonzo, which, after a long wait, is introducing smart contracts in the Cardano network. Alonzo investors long-term hope for a “flippening” in which Cardano will replace Ethereum as the largest smart contract platform and take its place on the DeFi market.
The expectations are based on a scaling advantage over Ethereum. Because in contrast to Ethereum, which changes the consensus mechanism in a lengthy process, Cardano already has the proof-of-stake trump card in hand. Cardano also has the edge in terms of network speed. With Ethereum, the throughput is currently around 15 transactions per second (TPS), Cardano already manages 257. Thanks to the second-layer solution Hydra this value should even multiply to up to a million transactions per second. Ethereum 2.0, on the other hand, should come to 100,000 TPS through scaling solutions such as sharding. In September, the cold war between Ethereum and Cardano should finally heat up when the hard fork Alonzo rolls over Cardano.
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Ethereum: staking demand is increasing
Meanwhile, the conversion process to Proof of Stake at Ethereum is in full swing. Like Ki Young Ju, CEO of the on-chain data platform CryptoQuant via Twitter wrote, more than 95,000 ethers were paid into the ETH 2.0 deposit contract within one day on August 18 alone. Value: Around $ 287 million. “Another proof that ETH is bullish in the long run,” Ju added. Of the 212,000 validators, around 6.8 million ETH and thus almost 22 billion US dollars are currently staked in ether.
Cardano is one step ahead of the Ethereum network in the consensus process, but that could change faster than expected. The merge event, at which the Ethereum Mainnet “merges” with the Beacon Chain and is switched to PoS, is to take place this year. Originally, the merge was not scheduled until after the introduction of sharding, in which the network was distributed over 64 shard chains. According to the developers However, “with the boom in Layer 2 scaling solutions, the priority has shifted to the switch from Proof-of-Work to Proof-of-Stake”.