Three main reasons behind the rise in the price of the Cardano digital currency "ADA"
The price of the digital currency "ADA" Cardano increased significantly this month, as it has doubled in price since the beginning of February and is now trading at 0.80, according to "CoinMarketCap".
The smart contract functionality provided by blockchain technology has become among the promising functions that promise to transfer control to society, and to make many things decentralized while eliminating many third parties.
The Cardano project is among the projects that promise a revolution in the world of blockchain and smart contracts, which made the price of the “ADA” coin of the “Cardano” project soaring after the rise of Bitcoin and the achievement of many alternative digital currencies to new peaks.
FOMO sentiment increased towards the "ADA" currency, which made the currency's price double in a short time.
Here are three main reasons why the price of the ADA digital currency has increased:
1- The new Cardano update date is approaching
The "Mary" update is one of two updates planned to upgrade Cardano from the "Chile" version to the "Joujin" version.
The first update was successfully implemented on February 3 at 20:00 UTC, and it is finally scheduled to provide greater support for Cardano’s original digital currency “ADA,” a move that will allow the Cardano blockchain to properly support decentralized finance (DeFi) and decentralized apps (Dapps).
DeFi and Dapps are the markets targeted by Ethereum and the competing blockchain networks for smart contracts such as Cardano.
Currently, most DeFi projects and decentralized financing protocols are intrinsically linked to Ethereum, with the vast majority of decentralized financing protocols operating on the Ethereum blockchain.
By March, the upgrade will roll out to Cardano's main network, which will unlock smart contract jobs in the blockchain.
The market has reacted strongly to the upgrade, given that Cardano is one of the few, if not the only, blockchain platforms that dealt with cryptography internally.
Cardano's design is described as superior to Ethereum because it removes a layer of complexity as ADA cryptocurrencies will be able to directly interact on the blockchain in the same way that Ethereum does.
Handing control over to society
“IOHK”, the company behind Cardano, is set to give up full control of blockchain production at Blockchain Cardano on March 31 (currently 100% of the blocks are produced by IOHK).
As of March 31, the Cardano network will be fully community-controlled which means that the Cardano blockchain will be completely decentralized and fulfill the promise of decentralized blockchain and free intermediary financial operations.
The move towards true decentralization has also been a major factor in instilling confidence in Cardano's supporters and is undoubtedly a magnet for new users and a factor seeing ADA reach its all-time high.
IOHK Introducing ADA to Africa
IOHK CEO Charles Hoskinson revealed late last year that the company was working on a number of projects exclusively targeting Africa.
In a recent interview with “Proof of Africa,” John O'Connor, IOHK's director of African operations, revealed that the company was in the final stages of a major government contract in Africa.
Upon its launch, the project could bring millions of new users into the Cardano platform, becoming one of the largest real-world blockchain applications.
While details are due to be released at the end of this month - O'Connor revealed, “The African project must enter 100 million users into its platform over the next two years.
This is another bullish signal for supporters of the Cardano digital currency "ADA".