Gensler gives the market goosebumps, but Cardano bucks the trendA shot across the bows from SEC Chief Gary Gensler sends crypto down again this week, with Bitcoin and Ethereum losing over 3%, but Cardano manages to buck the trend to gain just under 5%.
As popular as crypto has become, it’s not without its naysayers, and SEC Chair Gary Gensler might soon be one of them. In a big speech on Tuesday, the official said that though the technology intrigues him, the SEC will be regulating crypto markets to the maximum possible extent – even calling on Congress to grant more resources and scope to oversight of the industry. Financial regulators have been struggling to get a grip on the exponentially growing crypto market, with no one single regulator yet able to oversee global brokers or exchanges. The market value of the asset has boomed to over $1.6 trillion, which is hardly small change, yet the universe as yet has few frameworks in place to reduce crime, protect investors, or ensure national security.
said the SEC Chair.
The comments sent Twitter crazy, with some believing that this is Gensler's most aggressive stance so far and could be a catalyst for increased regulation. Most major digital currencies sank on Tuesday, with Bitcoin (BTCUSD) down 2.52% and Ethereum (ETHUSD) losing just under 4%, but Cardano managed to buck the trend and gain just under 5%. The stock has been on a bull run since the market took a turn in the right direction on July 21, a welcome change from the crypto crash that has characterized the last few months.
Grayscale gives Cardano a boostDigital-asset management firm Grayscale is helping crypto Cardano get a leg-up after adding the crypto to its large-cap fund, sending prices up over 4%.
Grayscale, a U.S.-based crypto asset management firm, announced on Friday that it has added ADA (Cardano’s native token) to its Digital Large Cap Fund. Cardano has swiftly become one of the top performing crypto assets of 2021, having gained over 700% since the start of the year – ADA is currently the 5th most valuable digital asset with a market cap of nearly $45 billion.
Grayscale gave Cardano the third highest allocation in the fund with 4.36% (Bitcoin has a 67.4% stake and Ether holds 25.39%.) The fund offers exposure to 70% of the digital asset market, and Cardano was its top pick out of 18 other assets and 31 projects that were being considered, beating out popular tokens like UniSwap (UNIUSD) and Polkadot (DOTUSD).
Edward McGee, Vice President of Finance at Grayscale, said.
Have you met Cardano yet?Amid the Bitcoin sell-off last week investors shifted gear, steering towards alternative blockchain networks like Cardano, which bounced 15% yesterday as it nears a smart contract rollout on its network.
Cardano was developed in 2015 to serve as a more energy efficient, flexible alternative of Ethereum – it was even founded by the same guy, Charles Hoskinson, who saw how increased adoption could cause higher gas fees and make Ethereum eventually impractical. The blockchain platform recently announced that it’s hit one million wallets, a major milestone, while its internal cryptocurrency Ada has soared by almost 900% this year, hitting a high of $$2.46 on May 16 and closing yesterday at $1.78. The platform now has an estimated market capkens of almost $60 billion, and got a major boost both from its Coinbase listing in March, and from Elon Musk’s very public outcry on the environmental impact of Bitcoin mining, which gave investors a nudge to take a look at more eco friendly options.
The crazy crypto crash last week took down a lot of the crypto market, but Cardano held its ground, and people are predicting a price march towards $10. In a world that’s becoming greener by the minute, a sustainable alternative like Cardano has become an exciting looking alternative. The blockchain platform is now looking to expand its services by rolling out smart contracts, which is essentially an automated written (in code) agreement that tracks, verifies, and executes the agreed up transactions in a contract between two parties so that everyone can be sure of the outcome. Ethereum is currently king in the smart contract realm, but the amount of energy it takes and the increasing activity on its network is a big concern. Cardano uses only a fraction of the energy that its bigger competitors does, at 0.55 kilowatt hours per transaction versus Bitcoin's 707 KWh.
said Denis Vinokourov, head of research at Bequant.