Global Crypto Space has given a thumping kickstart for Q4 with incredible profits. Top crypto assets in the market Bitcoin, Ethereum, Binance coin, Solana, and Polkadot gained profits of 8.29%, 8.48%, 20.26%, 9.59%, and 22.44%. Besides, Cardano has fallen to No. 4 with no significant price action. There is speculation going on in the market that the altcoin will soon be out of the top 10!
Why Cardano Could Fall Behind?
The Cardano ecosystem is losing its market value day by day. ADA price didn’t have expected profits despite its smart contracts launch and several attempts to go mainstream. It recently lost 3rd position to Binance coin. On 17th October Binance smart chain celebrated 100 million unique addresses, reaching a key milestone.
However, with an $82 million market cap, BNB is giving tough competition to not only ADA but also Ethereum. Besides, Cardano’s market cap continues to fall below $69 million. Hence, Solana and Polkadot’s price action could jeopardize the ADA price, if its decline continues.
In addition, insights from Messari.Io indicated that Cardano’s transaction fee is following in Ethereum’s footsteps. Over the year, its average transaction fee increased from 2 cents to 46 cents. Interestingly, ETH’s average transaction fees were also at the same level in its early days of development. Traders may lose interest in the asset if the same trend continues. And would look out for an asset that facilitates trading with competitive gas charges.
The Cardano Ecosystem Can Still Bounce Back!
Recently, Cardano’s co-founder Charles Hoskinson listed out important projects that are in the pipeline. Surprisingly, he revealed that Plutus Application Backend (PAB) will be launched by late October or by early November. It is an off-chain, backend service that allows developers to interact with smart contracts. He believes this could act as a major catalyst for asset price action.
On the other hand, despite its failure to reach new highs, the asset is getting enough attention from institutional investors. These investors increased their holding by $3.6 million within the last week. However, the ecosystem is thoroughly working from roots on several upgrades. Notably, Basho and Hydra, scaling solutions are set to go live by 2022.
Collectively, The Alonzo Hard Fork launch and the Cardano Summit have no significant impacts on the price action. Crypto space is awaiting to see how upcoming events would bring a drastic change in the price moments.