Key Takeaways
- Crypto rating agency Weiss Crypto has bumped up Cardano’s (ADA) grade to “A-”, an elite classification only topped by Bitcoin (BTC) and Ethereum (ETH). The decentralized blockchain has showcased growth in adoption, technology, and overall market performance over the past 30 days.
- The increase in grade can be attributed to Cardano making significant strides in innovation and adoption. The network has partnered with BitcoinOS to achieve smart contract capabilities on the Bitcoin blockchain, allowing ADA to tap into BTC’s $1.9 trillion market cap.
- Since Donald Trump’s victory in the U.S. election, the market cap of ADA has tripled, resulting in the ninth-largest crypto outperforming giants in market performance and surpassing the $1 mark for the first time in over two years.
- The volume of large-scale whale and institutional accumulation transactions has skyrocketed on Cardano, hitting a peak of $22 billion per day. While the bulls are in control of the ADA market, the $0.80 support level is key for maintaining its upward momentum.
Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, has seen its price top the $1 mark for the first time since April 2022. Its impressive November performance was capped by an increase in value of 211% over the last 30 days.
Weiss Crypto Bumps Cardano Up To Bitcoin And Ethereum’s Grade “A” Classification
The price uptick was driven by crypto rating firm Weiss Crypto announcing on Friday that it has given Cardano a new ranking following its solid recent market performance. This upgrade has elevated ADA from a “B+” asset to an “A-” asset, a classification only occupied by the world’s largest cryptocurrencies – Bitcoin (BTC) and Ethereum (ETH).
According to Weiss, the “A” class defines a particular crypto asset as excellent, subject to meeting major market criteria, including adoption, technology, and overall market performance.
Cardano has demonstrated its excellence across these areas, however, it is important to note that the $35.75 billion crypto asset’s classification ranks lower than Bitcoin, which holds an “A” rating with a “strong buy” recommendation.
The A grade has “A+,” “A,” and “A-” classifications, from which Cardano ranks in the lower third. Ether (ETH) also shares the same “A-” rating as ADA. Notably, the trio are the only occupants of Weiss Crypto’s elite “A” grade asset class, further signifying their dominance and reliability in the highly volatile market.
Leading altcoins like Solana (SOL), Dogecoin (DOGE), and Ripple (XRP) are also ranked high on the Weiss Crypto listing. SOL has a “B+” badge, accruing a “B” in technology and adoption but an “A+” grade in market performance. XRP boasts a “B” grade, with a “B” in technology and a “B+” in market price performance. DOGE also has a “B” grade, with a “B” rating in adoption but a “C+” in price performance.
Cardano Taps BitcoinOS To Bring Smart Contract Capabilities To Bitcoin, Thus Increasing The Liquidity of ADA
The rating upgrade was expected as Cardano has lately been making positive developments to its ecosystem. Recently, Cardano announced a strategic partnership with BitcoinOS to achieve smart contract capabilities on the Bitcoin network, increasing liquidity on the highly scalable blockchain by providing it access to BTC’s $1.9 trillion market cap.
Moreover, Bitcoin developers could also deploy decentralized applications (DApps) on Cardano and pay transaction fees with BTC, enhancing interoperability between the two leading distributed networks.
BitcoinOS is a decentralized modular system designed to enhance the scalability, interoperability, and programmability of the Bitcoin network by transforming it from a simple digital currency into a comprehensive operating system capable of supporting decentralized finance (DeFi) applications.
ADA Market Cap Tripples As Whale Accumulation And Institutional Interest Rises
Meanwhile, Cardano founder Charles Hoskinson’s involvement in shaping the U.S. crypto policy for the incoming Trump administration has drawn significant institutional interest to the ecosystem. His action has boosted ADA’s credibility, facilitating its integration into mainstream financial systems, and increasing its price and market performance.
ADA tripled in market capitalization on its way to surpassing the coveted $1 valuation for the first time in over two years. Its price has been steadily rising since U.S. election day and hit a yearly peak of $1.15 during Saturday’s trading session, where bulls encountered resistance.
In an X post, crypto analyst Ali Martinez indicated that increased whale activity and institutional interest have resulted in the volume of large-scale ADA transactions on the Cardano network surpassing $22 billion per day.
He attributed this growth in transaction volume to high accumulation levels, adding that whales holding between 1 million and 10 million in ADA have increased their positions by more than 100% over the past 30 days. In the last 24 hours, the trading volume of large transactions on the Cardano blockchain has increased by 17.67% to $45.41 billion.
Crypto analytics firm Santiment cited that ADA crossing the $1 mark on Friday led to traders’ realized gains metric hitting its highest point since March, over eight months ago. A crucial price point for ADA is $0.80, and if the token does not fall below this range, then it means that bulls have successfully turned the level into support.
This will increase the chances of the token moving well above $1 and targeting a $1.25 valuation. On the contrary, if the price falls below the $0.80 support level, then it may trigger a drop for ADA to $0.63.
At the time of writing, Cardano (ADA) is changing hands at $1.05 – up 0.12% in the last 24 hours.
