Cryptocurrencies are regaining momentum and Cardano, the new kid on the block, is making a splash.
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Already the world’s third-largest cryptocurrency, Cardano’s ada token hit a new high of $3.09 on Thursday, boosting its market value to nearly $100 billion.
The price later pared gains and was up 4.6% at $2.96, according to CoinMarketCap. Meanwhile, top cryptocurrency Bitcoin rose 2% to above $49,283 after topping $50,000 again earlier on Thursday, but remains well off its high of $63,500 reached in April. And No. 2 Ethereum climbed 1.5% to around $3,780, also still below record highs.
Growing interest in non-fungible tokens (NFTs) and smart contracts is fueling the comeback among some of the top digital currencies.
A smart contract is a computer code stored on a blockchain that runs when predetermined conditions are met. It can automatically monitor, execute and enforce a legal agreement. All participants can be immediately certain of the outcome, without any intermediary’s involvement.
An NFT is a unit of data stored on blockchain that certifies a digital asset like a photo, video or audio file to be unique and therefore not interchangeable.
Cardano Changes Due Soon
Investors are anticipating big changes at Cardano. Last month, Cardano founder Charles Hoskinson hinted a software update in September would enable it to process smart contracts.
That will allow Cardano to better compete against Ethereum, one of two big players, along with Bitcoin, in the booming decentralized finance industry. Bitcoin does not yet offer smart contracts.
Cryptocurrency stocks took off on the stock market today. Bitcoin miner Marathon Digital Holdings (MARA) rallied 2.5%. MARA stock is still more than 20% off its 52-week high of 57.75 hit back in April, according to MarketSmith chart analysis.
However, its relative strength line is trending upward. MARA stock also has a top-notch RS Rating of 99.
But its EPS Rating is just 20, as it has yet to post a quarterly profit.
Rival Bitcoin stock Riot Blockchain (RIOT) gained as much as 5% in early trading, but reversed lower to fall 1.5%. RIOT stock also has a best possible RS Rating of 99, and its EPS Rating is 65.
Crypto platform Coinbase (COIN) edged up 0.9%. Its RS Rating is just 17, but its EPS Rating is 74.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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