It is safe to say we live in very interesting times when it comes to cryptocurrencies. A lot of money is flowing into this ecosystem, although not all of it may end up where it should be. While diversification in the cryptocurrency world is always advised, it is unclear what is driving the Cardano price. Especially now that it has surpassed US$1, there are still a lot of questions which will need to be answered.
Cardano Price Surges to $1
In the world of cryptocurrency, most people think of Bitcoin and “everything else”. As we have seen in the past few months, “everything else” encompasses a lot of currencies which seemingly rise in value on a whim. One of those currencies is Cardano, a project which still has everything to prove. Although it remains unclear whether this concept will ever go anywhere, Cardano has appreciated by quite a margin over the past four weeks.
More specifically, we have seen the Cardano price rise from US$0.118 all the way to US$1. Achieving such massive growth in less than four weeks is pretty spectacular, to say the least. Most of this value is based on hype and speculation, by the look of things, but that is not uncommon in the world of cryptocurrency these days. At the same time, Cardano is one of the top 5 cryptocurrencies by market capitalization right now, which is somewhat worrisome.
Thanks to solid gains over the past few days, Cardano’s value has more than doubled since December 25. For a currency with a circulating supply well below the total supply (which is below the maximum supply), it is a bit unclear if this US$1 price point can be sustained for long. After all, this is the first time we’ve seen the Cardano price reach US$1.
With over US$489 million in 24-hour trading volume, things are looking pretty good for Cardano right now. The demand to both buy and sell this altcoin is certainly there, and the trading volume has picked up in recent weeks as well. Especially now that the US$1 milestone has been reached, the question becomes whether or not massive profit-taking will set in later today. That would seem the most logical outcome for an altcoin which still has everything to prove.
As one would expect, most of Cardano’s trading volume originates from the Binance exchange. This platform has quickly captured its fair share of altcoin trading action, while Bittrex is in second place. The first fiat currency market for Cardano comes in sixth place, courtesy of Korean exchange Coinnest. Whether or not the lack of fiat currency support will hinder Cardano’s growth moving forward remains to be seen.
For the time being, Cardano’s rapid valuation increase is a cause for concern, especially since its developers have yet to deliver on most of their initial promises. That doesn’t mean the project has no bright future ahead, mind you, but it’s always best to remain cautious when it comes to new projects like these. As always, it’s advisable to take profits whenever the opportunity arises.