Cryptocurrency assets such as Ethereum, XRP, and ADA aren’t the only ones that are doing well right now.
The cryptocurrency markets have had a very successful week. According to data source Nomics, none of the top 50 coins in terms of market capitalization have lost ground.
As markets sank yesterday, the cryptocurrency rally resumed, with Cardano (up 13 percent) leading the way, followed by XRP (6 percent) and Ethereum (5 percent ). As a result, the cryptocurrency market capitalization increased by 6.7 percent, or over $95 billion, in just 24 hours.
If you’re looking for explanations, you won’t have to look very far to find them.
Cardano, a cryptocurrency that competes with Ethereum, hinted the introduction of smart contracts on its platform this week. The contracts, which are expected to be released with the Alonzo network upgrade in about a month, will allow for the first time the use of decentralised finance (DeFi) applications on the network.
When financial intermediaries like banks and brokers are replaced by automated code in the form of smart contracts, everything from loan and interest payments to asset swapping and derivative trading becomes possible. In the last three months, Cardano’s ADA currency has risen above the $2.00 barrier, reaching a three-month high.
Ethereum, on the other hand, is still riding high after its own network upgrade last week, which brought with it a code patch known as EIP-1559 to the network.
As a result, the network’s transaction cost structure was altered, with a transaction fee being charged and then destroyed. Depleting the supply of money in circulation — more than 38,000 ETH ($123 million) have already been “burned” — has put deflationary pressure on the digital asset.
When there is less supply, there is more demand. ETH has now been trading above $3,000 for a week in a row, marking the first time this has happened since May.
Ripple, on the other hand, continues to win modest victories in its $1.3 billion legal battle with the Securities and Exchange Commission over an alleged unregistered securities sale of XRP, giving some clients the confidence to work with the company.
In the case of GME Remittance, a prominent South Korean company, the announcement of its participation in the RippleNet payment network came on Wednesday. For the first time since early June, XRP is trading above $1 for the first time.
Things are also looking up in other cryptocurrency markets, with Bitcoin, Dogecoin, Polkadot, and Uniswap all posting significant gains.
