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Last week, the crypto market experienced one of the most brutal corrections in its history, according to data from CoinMarketCap. With a few exceptions, the price of most cryptocurrencies fell by double-digit percentages. Bitcoin, the flagship cryptocurrency, fell by more than 15% at one point and is currently trading below $8,000.
When Bitcoin fails, the entire market crashes with it. However, one cryptocurrency stood out as an outlier, surpassing its prior all-time high as the rest of the market continued to decline – Cardano (ADA).
According to industry experts, Cardano is the only project in the top 10 cryptocurrencies that utilizes smart contracts, a working Proof-of-Stake, and does not need a restart every month. The crypto pair is an innovative contract platform like Ethereum, but it uses a different consensus algorithm called Proof-of-Stake (PoS).
#Cardano is the only project in the top 10 that has smart contracts, a working Proof-of-Stake, and does not need a restart every month. $ADA
— CRDNS 🏊 Cardanians.io (@Cardanians_io) May 20, 2022
Called Ouroboros, Cardano’s PoS algorithm doesn’t require mining like Ethereum does. This means that transaction fees on the Cardano network are very low and will likely stay that way.
Coinbase, a major cryptocurrency exchange, revealed in a recent notice that it has launched staking possibilities for ADA. Reports prove that Cardano users stake their ADA holdings to validate network transactions and create new coins. This gained traction since the original Proof-of-Work (PoW) blockchain concept was deemed too energy-intensive.
Cardano is a cryptocurrency that rewards users for validating transactions. People who want to stake ADA on Coinbase will be pleased to learn that the company has indicated its intention to help them. According to the promise, staking ADA on Coinbase yields a 3.75% annual percentage return. The idea is that Cardano may be safely kept in a Coinbase wallet, and the provider will stake it on the user’s behalf.
Ben McMillan, CIO of IDX Digital Assets, in an exclusive with Forbes, said:
Cardano has had a long time in the making, and it’s now seeing a considerable increase in projects being created on its blockchain.
At the time of writing, Cardano (ADA) is up by 0.3% in the past hour, trading at $0.527853. The token is ranked 8th in both CoinMarketCap and CoinGecko’s list of cryptocurrencies.