The price of Cardano (ADA) has risen by 10% today, due to this increase Cardano is overtaking Ripple (XRP) in terms of market cap.
Market cap Cardano not stable
There are a number of websites that keep track of the total market value (market cap) of the various cryptocurrencies, such as Coinmarketcap, Coincodex and Coinecko. They all show Cardano moving up and down within the top 10 in terms of market cap.
ADA lost its position as the seventh largest digital asset when BUSD’s valuation suddenly surged a few days ago. This happened when the markets saw a sudden dip, the prices of cryptocurrencies then fall and traders often flee to stablecoins.
Nevertheless, ADA recaptured its seventh position after a nice price increase, but it didn’t stop there. Cardano is now in sixth place after overtaking XRP.
Cardano market cap explained
If you now think, market cap, what is that? Very simple, if you multiply the number of coins in circulation by the current price of a certain crypto.
Currently, Cardano is trading for just under $0.58 at Bitvavo, multiply that by 33,820,262,543 coins in circulation and you get a market cap of $19.6 billion.
Price ADA has greater effect on market cap
The two factors that determine the market cap are the number of coins and the price. The number of coins often goes steadily, and at a fixed pace. You could therefore say that the price has a much greater effect on the market cap in the short term.
The increase in Cardano’s market cap was therefore directly influenced by the increase in ADA price. ADA successfully broke the EUR 0.55 resistance level after trading below that level for more than two months.
Cardano’s price was rejected several times when it tried to break through the resistance of 0.50 euros from mid-June to early July. Several short rallies pushed the asset’s value upward, but each attempt was met with resistance at the euro 0.50 level. It wasn’t until late July that ADA began trading comfortably above the half-euro price.