Cardano (ADA) has experienced a surge of over 20% in the weekly chart following a significant announcement that piqued investors’ interest. Currently, ADA is trading at $0.3547, and in the daily chart, it has seen a 2.88% rise. The ADA community is excited as the bullish trend in play since early October continues to gather momentum.
The latest surge above the $0.35 mark indicates a path of least resistance towards higher values. If ADA can maintain this level, it may sustain upward momentum in the coming weeks. The driving force behind this resurgence lies in the increased confidence of investors in the Cardano token.
According to blockchain analytics platform IntoTheBlock, ADA whales and investors accumulated a substantial 1.89 billion ADA during October, equating to an investment of over $600 million. Interestingly, a significant portion of this accumulation occurred within the price range of $0.249 and $0.271. This suggests that large holders may accumulate ADA long-term, potentially fueling a price rally toward $0.4.
Cardano’s recent price surge is a testament to its growing popularity and widespread support from both retail and institutional investors. Crossing the $0.37 resistance level represents a significant milestone for the project. Furthermore, introducing products like Midnight Protocol adds even more value to the Cardano ecosystem.
Cardano (ADA) Price Driving Factor
The catalyst behind this latest surge is the announcement of Cardano’s partnership with Polkadot SDK (formerly Substrate) in its partner chain. This strategic move aims to enhance scalability and promote interoperability between specialized blockchains while leveraging the liquidity and security offered by Polkadot’s technology. Midnight Network is poised to become one of the first adopters of these partner chains, highlighting the project’s promising future.
Cardano’s decision to utilize Polkadot SDK reflects a well-thought-out strategy, as Polkadot’s technology boasts numerous advantages, including a modular and flexible design for an interoperable future. The project’s choice to adopt Polkadot’s consensus mechanisms, BABE and GRANDPA, effectively balances liveness and safety, addressing a common issue in consensus models.
Moreover, Polkadot’s NPoS (Nominated Proof-of-Stake) offers a vast validator network of up to 1,000, mitigating stake centralization with fair reward distribution. Polkadot’s multi-chain vision, developed and tested for nearly five years, distinguishes it from Ethereum, making it a compelling choice for Cardano.
The Universal Language, XCM, enables seamless communication between Polkadot SDK chains, promoting interoperability and ease of use. This decision to embrace Polkadot SDK over alternatives like Cosmos SDK is rooted in the project’s priorities, requirements, and trade-offs. Polkadot’s chain-agnostic approach, lack of assumptions about consensus algorithms, and resolution of shared sequencer dilemmas set it apart as a robust choice for Cardano’s future endeavors.