The Bitcoin (CRYPTO: BTC) price has slipped back below the vaunted psychologically important US$50,000 level.
Having traded as high as US$50,496 during the past 24 hours, Bitcoin is down 1.4% since this time yesterday, currently trading for US$49,549.
Still, the world’s biggest crypto by market cap remains up 70% since 1 January.
Where it heads next is up for debate.
Taking a technical analysis view, global multi-asset investment platform eToro’s market analyst Josh Gilbert said, “If BTC can break above the next resistance level at $51,000 and hold, then I expect to see further upside as demand increases.”
But there’s more to the world of cryptos than Bitcoin.
A lot more.
Rising altcoin star Cardano claims number 3 spot
Yes, we’re looking at you Cardano (CRYPTO: ADA).
This time last year you could have picked up 1 Cardano for 12 US cents.
Having gained another 2.8% over the past 24 hours, the altcoin is now worth US$2.88. That gives it a market valuation of US$92.9 billion.
That’s enough to vault Cardano into the number 3 crypto spot. It now trails only Ethereum (CRYPTO: ETH) – market valuation of US$391.4 billion – and Bitcoin, with its market valuation of US$928.8 billion.
In other words, if today is the first time you’ve heard of Cardano, it’s unlikely to be the last.
Could this be the next Bitcoin?
While Cardano has a long way to go before it overtakes Bitcoin in terms of market valuation, don’t forget that only 12 months ago it was trading for a mere 12 US cents.
Gilbert said, “We know that investors are bullish on ADA, as it was the most traded cryptoasset globally by eToro investors in Q2 2021.”
According to Gilbert:
While BTC continues to be the most dominant cryptoasset, it has been recently outperformed by Cardano (ADA). ADA has reached new record highs trading at US$2.88, up more than 1,480% year-to-date.
Gilbert adds that, “ADA is the largest altcoin by market cap to reclaim a new all-time high since the crypto sell-off in May 2021.”
Bitcoin is still some 24% below its mid-April record highs of US$64,829. Ether, currently at US$3,334, also remains down 24% from its US$4,382 record high reached in mid-May.
So why all the investor enthusiasm for Cardano?
According to Gilbert:
The Alonzo upgrade for ADA, which will provide smart-contract capabilities to the network, is set to be fully released by September 2021… Once the upgrade is complete, ADA will be in a solid position to challenge Ethereum (ETH) for the De-Fi crown. The price appreciation of ADA with benefits such as staking makes it a standout to retail investors.
Whether Cardano continues its march higher or is due for a sharp retrace remains to be seen.
But for now, it would seem, Bitcoin has a new challenger.
