Cardano is no longer the third largest cryptocurrency in the world

The ADA token of Cardano skyrocketed by 150% in August, becoming the third largest cryptocurrency worldwide by market capitalization. But his triumph appears to have been short-lived.

While the rest of the cryptocurrency market has struggled to establish its direction, the blockchain platform decentralized has been overtaken by Tether, the largest stablecoin of the world, on September 29th.

The difference between the two has increased to $ 3 billion in the past few days, however, it has shrunk to just $ 1 billion in the past few hours as Cardano tries to reclaim his throne again.

The top five cryptocurrencies in the world

Cardano has lost its coveted “third largest” cryptocurrency position in the world to the stablecoin Tether. The price is now tempting for new investors and experts alike Crypto Genius analyzed the market:

Market capitalization of cryptocurrencies

Bitcoin 812.69 billion dollars

Ethereum $ 249.97 billion

Tether $ 68.4 billion

Cardano $ 67.37 billion

Binance Coin $ 63.4 billion

This isn’t even the first disappointment Cardano has faced in the past month. ADA’s market cap was gearing up to hit $ 100 billion as recently as September 2, riding the waves of its Alonzo Hard Fork update. Some even hoped it would reach the heights of Ethereum. But the platform didn’t hit its triple-digit target at an all-time high of $ 98.91 billion.

This time around, even the slew of new partnerships announced by the platform just a few days ago were not enough to protect Cardano from the pressures of the global cryptocurrency market, which has stabilized in a new crisis due to China.

Cardano falls despite new stablecoin, partnership, a DApp store and more funding

The Cardano Summit, held between 25 and 26 September, included the announcement of the new blockchain stablecoin, Djed, in collaboration with the fintech company COTI.

Cardano founder Charles Hoskinson describes Djed in his whitepaper published in August 2021: “It is an autonomous bank that buys and sells stablecoins at a price in a given range …“.

The development company behind Cardano, Input Output, has also announced two new partnerships. One is with the Oracle Chainlink protocol and another with the US-based satellite TV provider, DISH Network, a Fortune 500 company.

Developers on the Cardano blockchain will also have the opportunity to showcase their decentralized applications (DApps) in a “trusted and democratized environment to allow developers to publish their DApps without facing censorship”, called Plutus dAppStore.

Just like Google has the Play Store for Android apps and Apple has the App Store, the Plutus dApp Store is where users can download Cardano-powered apps.

And, if all that wasn’t enough, the cryptocurrency’s commercial and venture capital arm, Emrugo, has announced $ 100 million in new funding to further develop the Cardano ecosystem.

Why is market capitalization important?

Market capitalization of a cryptocurrency is one of the primary ways that investors evaluate whether a coin is safe to buy relative to its competitors – it indicates its growth potential.

The higher the market capitalization of a particular digital asset, the more dominant it is considered in the global market. The more dominant it is, the more likely it is to withstand the tides of time in the volatile environment of cryptocurrencies.

September was a roller coaster for all cryptocurrencies, not just Cardano

The cryptocurrency market is battling the fear, doubt and uncertainty (FUD) created by China since last week. The country reiterated its anti-crypto stance and vowed to shut down all cryptocurrency-related businesses within its borders.

The cryptocurrency market initially ignored China’s claims. However, large companies have not had the same reaction.

The largest cryptocurrency exchanges in the world, Binance and Huobi, have announced that they will no longer accept new registrations from users based outside of China. Sparkpool, the world’s second largest Ethereum mining pool, will close operations in less than 24 hours. And Alibaba, the Chinese e-commerce giant, has announced it will no longer sell mining equipment.

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