Cardano surpasses Ripple to become the sixth biggest crypto asset by Market Cap
Cardano is rapidly evolving into one of the leading crypto assets in the current times. Its market price showed bullish sentiments on 30th May and on 31st May, ADA reached the price of $0.068. It registered a hike of 24.8% in the last 24 hours and 23.7% in the last seven days, according to Coinmarketcap.
The total market cap of Cardano is over $22 billion as of now while the market cap of Ripple is $20 billion.
Reason behind this price hike
Cardano has surpassed Ripple to become the sixth biggest crypto asset by market cap. Let us look at the reason why ADA is in green while XRP is in red.
Experts are attributing two major reasons which are impacting the market prices of both crypto assets. One of the reasons is the upcoming Vasil Hard Fork Upgrade. This is the second major upgrade in Cardano, the first one being Alonzo.
Vasil Hard Fork would focus on the overall network stability and connectivity and it will also enhance its smart contract, Plutus. Once the upgrade is done, users can take benefit from an enhanced range of DeFi, DEX and Smart Contract solutions. Moreover, the transactions costs would reduce and transactions would be small and lightweight.
Furthermore, the new upgrade will introduce Cardano Improvement Proposal – CIP31 and CIP 32. Earlier when utilizing DApp functionality, whole Plutus script is incorporated too which makes transactions bulkier. Subsequently this led to higher fees and decreased throughput. Additionally, the data would be stored on-chain now which was earlier stored as a hash of it on-chain.
Currently there are around 900 projects build on Cardano and the number is expected to grow with the new upgrade.
The first testnet is scheduled to release on June 2, followed by the full mainnet release by 29th June. Cardano whales began acculumating ADA ahead of this testnet schedule. According to data, ADA whale transactions have shot up to a 4-month high since the price dipped to $0.40 earlier this year.
This is the reason why ADA market cap shot up while XRP’s price is dipping due to the SEC lawsuit on Ripple. Last year, SEC accused Ripple of conducting an illegal security offering through sales of its coin XRP. The lawsuit has been going on for more than 15 months and recently the court slapped misconduct on SEC for submitting expert report on the last day of deposition.
A panel of experts predicted XRP price drop to $0.68 if Ripple loses the lawsuit. However, if Ripple wins, XRP will cross $2.55 price before the end of the year.
