Cardano rises 12%, Morningstar believes it will hit the mainstream alongside Bitcoin and Ether
With the largest cryptocurrency approaching the crucial $40,000 level, the digital currency market appears to be reversing its downtrend.
Cardano (ADA), the fifth largest cryptocurrency by market capitalization, was not far behind the spectacular rally that happened on the past week. The ADA token registered an increase of almost 12%, trading above the level of the dollar.
After hitting an all-time price high above $2 in mid-May, Cardano has been in bearish territory for the past few months.
Yesterday, ADA again faced a key resistance point around $1.2, and this Monday it finally managed to break the average price of the last 20 days. At the time of editing, the Cardano cryptocurrency is priced at $ 1.34.
This year, the Cardano project has made considerable progress in its technological development, which has attracted great interest from investors. The general feeling of optimism about the potential of the platform is reflected in the performance of ADA, which has grown close to 600% since the beginning of the year.
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In the midst of a multi-stage update process that will finally deploy the functionality of smart contracts in Cardano, there have been few who have estimated that this Blockchain can conquer important ground in the industry, positioning itself as one of the main rivals of Ethereum.
Among them, Amy Arnott, the portfolio manager of the American financial services company Morningstar, is the latest to share an optimistic forecast for Cardano. In an interview with Business Insider, Arnott highlighted his view that ADA could reach the mainstream by becoming one of the top three cryptocurrencies after Bitcoin (BTC) and Ethereum (ETH).
During the discussion, which also addressed the regulation of cryptocurrencies, ETFs and the benefits of Ethereum, the strategist indicated that the multiple potential applications of Cardano could generate interest among institutional investors.
Cardano is similar to Ethereum in that it is a protocol that has many potential technical applications. There is a lot of enthusiasm for Cardano and also for various stablecoins