Why did Cardano price rise 450% in just over two months?
There's little doubt that 2017 was a great year for anyone involved with cryptocurrency. While Bitcoin stole most of the headlines, there was one coin that ended the year with a real bang. The cryptocurrency in question is Cardano (or ADA as the base coin is known on the exchanges).
Cardano saw a huge hike in value of 450% at the close of 2017, due to a massive bull run in terms of its price. This left it with a market value of around $33 billion at one stage, which for a fairly new coin is considered amazing. When you consider the original market cap was around $600 million, you can see why Cardano has made such a splash.
Why did it see such a large rise in value when 2017 ended?
In the cryptocurrency sector, most surges occur when a big news announcement is made. This did not happen with Cardano though, which instead saw its upward march start for other reasons.
Prime among them was that anyone new to investing in cryptocurrency come the end of 2017 seemed to favour Cardano. These new investors were desperate to jump on the cryptocurrency train but found Bitcoin and other well-known coins too expensive. Cardano's price at the time was much lower which gave them an easy and inexpensive route into the sector. This saw lots of new investors buy Cardano and the value rose as a result.
Don't forget the Asian markets
The Asian market, specifically South Korea and Japan, have been long-time fans of investing in cryptocurrency. Cardano capitalised on this large and important market to see demand grow from the activity around it on the trading exchanges in these countries. Indeed, it is thought that up to 90% of the trading volume around Cardano at the end of 2017 came from these two countries! This shows just how important this region has been in Cardano's ascent and why it saw such a huge rise in demand and value.
Cardano offers a third-generation solution
The creators of Cardano are fond of referring to it as a 'third-generation' solution. This means that they consider Cardano the next step on from Bitcoin and other cryptocurrencies after that. Where this becomes important is that it has allowed them to see the problems other cryptocurrencies experienced in their early days and avoid them. Cardano is also thought to be more secure than Ethereum and more flexible than Bitcoin.
These advantages have given investors great confidence in the new coin and led to them being keen to put their money into it. Many also see the great future potential Cardano has for general use and are investing now, to reap the rewards later.
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