FX.co ★ Bitcoin is losing its position as the first cryptocurrency. Who's in his place?

The Cardano cryptocurrency (ADA) unexpectedly took the third place in the rating of crypto assets by market capitalization.

In this regard, the Dubai investment fund FD7 sells bitcoins for $750 million in favor of Cardano and Polkadot.

According to trading data on Friday, ADA broke the previous historical high of 2018 ($1.18), and set a new record of $1.45 on Saturday

As a result, the token overtook Binance Coin, Polkadot and Tether and took the third place in the crypto rating, passing only Bitcoin and Ethereum ahead of itself. The capitalization of Cardano exceeded the level of $40 billion.

At the same time, the ADA cryptocurrency has increased by 20% last week, in the last month – by almost 300%, and in 2020 - by 2600%.

Analysts find the explanation for such spectacular dynamics extremely simple – in March, the project plans to deploy the Goguen update, which will implement important changes. Thanks to this upgrade, the platform will be able to enter the segment of decentralized finance (DeFi). Over the past year, DeFi platforms have been incredibly popular, so experts are confident that this trend will only grow in 2021.

Despite the fact that many projects are constantly working on compatibility, Cardano has gone much further here. So last Friday, the project team announced support for the new Glow programming language. Thanks to the integration, developers will have access to different ecosystems. Analysts predict that as a result of the Goguen update, the project will exceed the tokenization standards implemented in Ethereum.

Yesterday, it became known that one of the largest international online digital currency exchange services, Binance, will support the Cardano update and hard fork, so deposits and withdrawals in ADA will be suspended for five hours.

At the same time, the well-known Dubai fund FD7 with assets of $1 billion announced its decision to sell $750 million worth of bitcoins during March to increase investments in ADA and DOT. At the same time, the director of FD7 Ventures Prakash Chand called the digital currency BTC "quite useless", and Cardano, Polkadot and Ethereum, on the contrary, declared "the basis of the new Internet and Web 3.0". So, Chand is confident that Ethereum, Cardano and Polkadot will exceed the value of bitcoin over the next few years.

It is worth recalling that Cardano is a multi-level blockchain platform based on Proof-Of-Stake. It is designed to create decentralized applications based on smart contracts. Today, about 70% of all Cardano project tokens are staking, making it the most decentralized blockchain in the world.