Sunday, January 29

ADA jumps and returns to the top 5 crypto assets by Market cap

After posting a 47% weekly profit, Cardano’s ADA has overtaken Solana to become the fifth largest cryptocurrency by market cap. According to analysts, the new scaling plans appear to be fueling ADA’s bullish price action.

Input Output Hong Kong -IOHK-, the company that develops Cardano, this week announced new plans outlining how the network will scale in 2022. The objective is to increase the capacity and performance of the network with different parameter adjustments, improvements and other innovations.

In this way, the smart contract blockchain is being prepared for a substantial increase in usage, amid plans to onboard hundreds of thousands of users.

 

Among the expected blockchain improvements is the increasing block sizes, introducing pipelining to reduce block propagation times, and input endorsers to expand the number of transactions per second. IOHK also plans to introduce sidechains to allow tokens from one chain to be used on another and more resource-efficient processes for settling off-chain transactions.

The new scaling initiatives appear to have been well received by the market, as Cardano is one of the few large-cap crypto assets to have started this week on a positive note. ADA has gained almost 12% in market value since the weekly open and may have more room to go higher.

 

In the last 3 days Cardano attempted to break above the critical resistance of $1.55. Breaking this barrier could encourage enthusiasts and traders to re-enter the market and push ADA towards the 50 day moving average at $1.90 or even the psychological barrier at $2.

On the other hand, any signs of weakness around the $1.00 demand zone may be strong enough to invalidate the bullish outlook. Under such circumstances, ADA would be at risk of crashing to $0.65.

 

Keep reading:

► Cripto247 Awards 2021, presented by IOVLabs: Bitcoin and Solana are the crypto assets of the year

► Ethereum loses prominence in the DeFi ecosystem

► Buterin’s proposal to lower the gas fees of the Ethereum network

 

Join the Crypto247 community. Follow in Twitter, Instagram, Facebook, YouTube, Telegram and find out about all the news from the crypto world instantly.





www.cripto247.com