Cardano hits new high as Bitcoin and Ether hit highest prices since $ 1,000 billion crash

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Top line

After weeks of pent-up price momentum, cryptocurrencies rallied on Thursday morning amid growing fervor for buzzy blockchain-based digital collectibles known as non-fungible tokens and institutional adoption. ongoing, propelling the market to levels not seen since a lightning crash in May wiped out over $ 1 trillion in value.

Cardano amassed nearly $ 100 billion in market value as bitcoin and ether hit their highest … [+] price since May.

Getty Highlights

At 9 a.m., the value of the cryptocurrency market has jumped more than 5% in the past 24 hours, surpassing $ 2.3 trillion in market value and reaching its highest level in just a few days. after crypto markets suddenly crashed a record $ 2.6 trillion. in early May, according to crypto-data site CoinGecko.

Heading for renewed gains in the market, Cardano’s ada token, which last month became the world’s third largest cryptocurrency, hit a new high of $ 3.09 on Thursday morning and amassed more of $ 99 billion in market value.

Investors took a look at the cryptocurrency ahead of a software upgrade this month that will allow it to support smart contracts, self-executing financial deals that underpin the technology behind NFTs and the space. decentralized financial system of 100 billion dollars.

Ethereum, which has long dominated the smart contract market, surged 7% overnight to hit a price above $ 3,800, peaking in four months after NFTs posted record sales of $ 900 million. dollars in August.

Even bitcoin, which lags behind Ethereum in supporting smart contracts and has underperformed the broader crypto market in recent weeks, jumped 4%, topping a price of $ 50,000 for much of Thursday morning.

The single most declining token in value on Thursday morning was Solana, down 3% after a breathtaking week-long rally that helped the fledgling cryptocurrency, launched just 17 months ago, to soar in value. by over 6,000% this year alone.

Tangent

The NFT market has recorded sales of $ 2.5 billion so far this year, nearly 20 times over $ 13.7 million compared to the same period last year. With growing interest from major investors like payments giant Visa, demand is about to explode, ”wrote Nigel Green, CEO of DeVere Group, a $ 12 billion wealth advisory firm, in a statement. Wednesday’s note, while also acknowledging the risks of an emerging market faltering with optimism. “We can expect some of the NFTs on the market to be of little value in a few years now, but some will be worth a fortune.”

Key context

Along with the buzz around NFTs, ongoing institutional adoption and increased inflationary concerns have helped the cryptocurrency market cut losses since regulations in China triggered a crash of nearly 50% in early May. The market is still down around 12% from its all-time high, but has climbed over 40% in the past month. According to research by crypto hedge fund Nickel Digital, 49% of fund managers (who have collective assets of $ 275.5 billion) believe institutions will look to cryptocurrencies for the first time this year to protect themselves. against the threat of inflation, which is increasing to its maximum. fastest pace in nearly 13 years.

Chief critic

“A fatal mistake new crypto investors make is to look at the past and extrapolate it into the future. Don’t invest more than you can afford to lose,” says Bankrate analyst James Royal , pointing out that some cryptocurrencies rely heavily on market optimism for price gains, as opposed to stocks, where corporate profits typically generate returns. “If your financial investment is not backed by an asset or a cash flow, it has the potential to be worthless.”

Further reading

Ether Expands Earnings Beyond $ 3,500, Bitcoin Stuck Below $ 50,000, Solana Takes Down (Forbes)

Cardano’s Ada hits new high, becoming largest cryptocurrency to hit record price after $ 1,000 billion crash (Forbes)

Solana soars to new high, amassing nearly $ 40 billion in market value as competition with Ethereum intensifies (Forbes)

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