Cardano Shortchanged: No Longer the World's Third Largest Cryptocurrency
In August, Cordano's ADA token increased by 150%. This made it the third-largest cryptocurrency worldwide by market capitalization. But its reign seems to have been short-lived. Yes, Cordano isn’t the third-largest cryptocurrency worldwide.
Tether surpassed the decentralized blockchain platform on 29 September. Tether is the largest stablecoin globally. At that time, other coins in the crypto market struggled to decide their direction.
The gap between the two crypto coins increased to $3 billion during the night. However, it decreased to a mere $1 billion as of 9:00 am IST the following day. It seems like Cordano is looking to reclaim its throne.
So, Is This Cordano's First Disappointment as third-largest cryptocurrency?
No, this isn't the first disappointment from the coin. ADA's market cap almost hit $100 billion as early as 2 September. Some people even hopped that Cordano would reach the heights of Ethereum. But the platform didn't meet its triple-digit goal. It had an all-time high of $98.91 billion.
Not even the slew of new partnerships announced could save it this time. Nothing could save Cardano from the pressures of the global crypto market. The crypto market just settled into a slump.
Cordano's New Stablecoin Partnership
Cordano fell despite announcing a new partnership with stablecoin. Moreover, further funding and a new DApp store couldn't save it this time around.
The new stablecoin partnership got announced during the Cardano Summit. The summit ran from 25 to 26 September. They unveiled Cordano's new stablecoin, Djed, in collaboration with fintech company COTI. Djed is an autonomous bank that trades stablecoins for a price in a range.
Input Output also unveiled the new partnerships. It is the development firm behind Cardano. The first collaboration is with Oracle protocol Chainlink. Additionally, Cordano partnered with the US-based satellite TV provider, the DISH network.
Moreover, Coedano's developers will gain immensely from the partnership. They will be able to showcase their decentralized applications (DApps) in the Plutus dAppStore. It's a safe and fair environment for developers to showcase their DApps without any censorship.
The Plutus dApp Store is similar to Apple's App Store and Google's Play Store. It is a platform where users will download applications powered by Cardano. But that's not all.
Emrugo also announced a $100 million funding to improve the Cardano ecosystem further. Emrugo? It's the commercial and venture capital arm of the cryptocurrency.
Why Is Market Capitalization Important?
The market cap of a digital coin is an essential variable to investors. It is one of the main ways investors assess the safety of a currency. The market cap shows the growth potential of the coin. Investors use it to determine if a cryptocurrency is safe to buy.
A higher market cap indicates the crypto coin's power in the global market. A more dominant currency is more likely it is to stand the tides of time. This is because the cryptocurrency environment is very volatile.
What Makes Cryptocurrency Important on The Internet?
Cryptocurrency is essential on the internet, especially the dark web. The darknet is a hidden segment of the internet. You can only access it using special networks like Tor. There are many dark web marketplaces where people trade goods and services.
Most traders in the black market trade using cryptocurrencies. There are various goods and services offered in the dark market. These include drugs, weapons, and even hitman services. Journalists and whistleblowers also use the darknet to publish information.