Three Cardano (ADA) Catalysts That Drove Its Price to New Highs

​ADA, the native cryptocurrency of the Cardano network, reached its best levels in the last three years in the middle of a significant capital influx from Bitcoin to the altcoin market. Altcoins followed BTC price for most of 2020, with tokens in the DeFi sector being proactive. In the meantime, Cardano’s emergence as a direct competitor to Ethereum helped ADA maintain its bullish influence atop the pro-crypto fever.

Entering 2021, the blockchain protocol is offering traders more reasons to speculate on its valuation, and there are at least three reasons why ADA price has increased and might keep increasing.

Taking Away Ethereum’s Leadership

The latest gains in the ADA market matches a Cardano blockchain upgrade. IOHK announced on Thursday that it would proceed with its second planned hard fork – known as Mary – as part of its swap from the Shelley Era to the Goguen Era towards the end of this month. Once the upgrade is complete, Cardano will support smart contract development.

“Goguen introduces a mechanism whereby tokenization is handled natively,” Cardano’s blog post explained. “The logic is based on the Cardano ledger, rather than smart contracts.” “By taking this approach, we are able to implement an efficient tokenization strategy that is superior to the ERC-20 and ERC-721 standards supported on the Ethereum blockchain,” the post added.

Grayscale Filing

The idea of Cardano emerging as a true Ethereum competitor alerted companies in the mainstream finance sector. For instance, Grayscale Investments, a New York-based company that provides institutional investors with exposure to crypto assets through classical investment methods, announced that it had added a Cardano-enabled trust among its services.

Later on, the CEO at Grayscale, Michael Sonnenshein,​ clarified that adding a trust doesn’t mean they are offering it to clients. However, he added that the company would observe if the demand for ADA or other trusts increases.

ADA Perpetual Swaps Launch

The crypto derivatives branch of the Bitfinex exchange, Bitfinex Derivatives, announced on Wednesday that it is launching Cardano and Stellar’s perpetual contracts with a maximum of 100x leverage. Traders will be able to arrange their positions in USDT.

A perpetual contact enables traders to hold positions indefinitely, which makes it appealing to people seeking to profit from long-term targets. This launch may have also helped ADA get to a new high.

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