Cardano (ADA) prices, July 6, 2019 to July 6, 2020.
The eighth-largest cryptocurrency by market value jumped to $0.1021 on Saturday to hit its highest price level since June 2019. It has rallied by a staggering 170% in the second quarter, according to CoinDesk data.
At press time, ADA is trading near $0.098, representing a 200% year-to-date gain. Its bitcoin-denominated price (ADA/USD) also clocked a one-year high of 1,120 satoshis (0.00001120 BTC) last week.
Cardano-specific factors look to have fueled the big price rally, given that bitcoin, the top cryptocurrency and an anchor for crypto markets, has gained just 30% so far this year.
According to Daniel Ferraro, marketing director at blockchain intelligence firm IntoTheBlock, ADAs impressive rally is the result of the excitement surrounding the Shelley upgrade, which would make Cardano 50 to 100 times more decentralized than other prominent blockchain networks. Further, it will introduce an incentive scheme, or staking, designed to reach equilibrium around 1,000 stake pools.
Staking refers to the process of holding coins in a cryptocurrency wallet to support the operations on a blockchain in return for newly minted coins. It is similar to earning interest on a fixed-income investment such as bonds.
An incentivized testnet (ITN) was launched in December 2019 to allow ADA holders, who acquired coins before November, to earn real staking rewards by participating in the testing of the Shelley upgrade. Currently, there are over $13 billion ADA staked on ITN, according to itn.adapools.org.
The price rise seen over the past couple of months was likely fueled by the launch of staking on ITN, said Simon Peters, crypto market analyst at investment platform eToro, who added, The ITN ph ...