In the early hours of today, according to coinmarketcap, the cryptocurrency market capitalization crossed the $2 trillion benchmark as Cardano’s native token, ADA flips Binance’s BNB in market capitalization on news of its official smart contract launch date.
The cryptocurrency market capitalization has been on a bullish run in the last month. A month ago, the market cap stood at $1.3 trillion but it has since gained over 53% to currently stand just slightly above the $2 trillion mark.
The appreciation in the market capitalization is a result of bullish momentum from Bitcoin and other altcoins posting double-figure gains. Bitcoin, the flagship cryptocurrency and Satoshi’s masterpiece, has gained over 45% in the last month to currently stand at $47,700, currently attacking the $48,000 resistance point.
Other well-known altcoins have also posted double-figure gains. Examples include Ripple’s native token XRP gaining 87% to currently stand at $1.15, Binance’s native token BNB gaining 34% to stand at $410 and Cardano’s ADA gaining 75% to stand at $2.18 as of the time of writing this report.
Also of note, ADA price at $2.18 means the token takes the third spot away from BNB, with its market capitalization currently standing at $69.5 billion. BNB’s market capitalization currently stands at $68.9 billion. The rapid appreciation in ADA’s price is a result of the anticipation of the smart contract launch, which has been the talk of the cryptocurrency community all week. This makes ADA the 3rd most valuable cryptocurrency only led by Bitcoin and Ether.
Yesterday, in a YouTube IOHK update done by Tim Harrison, the marketing & communications director of IOHK, Nigel Hemsley, the head of delivery & projects at IOHK and Kevin Hammond, a software engineer at IOHK, the team stated that after the testnet is hardforked and all testing is satisfactory, the complete smart contract will be hardforked on the 12th of September 2021.
The cryptocurrency market seems to be back in its bull run as many altcoins are posting double-figure gains in the last 7 days and in the last month. The cryptocurrency market in May suffered a significant level of retracement that caused the market capitalization to drop drastically from $2.5 trillion to as low as $1.2 trillion, representing a 52% decline. Now the market looks to be recovering significantly to trade its peak prices before the crash that caused Bitcoin and many altcoins to post greater than 50% losses.
Investors are advised to trade cautiously as the cryptocurrency market is very volatile and this level of returns can cause retailers to invest out of FOMO (Fear Of Missing Out) without checking fundamentals.