The Tron network’s TRX token has been performing impressively in recent days, so much so that it has now overtaken Cardano (ADA) from the top 10 largest cryptocurrencies.
Over the past week, TRX’s price has risen by more than 16 percent, significantly contributing to its new position in the rankings.
At the same time, Cardano has only posted a meager gain of 3 percent, losing its place in the top 10 to the outperforming TRX token.
Cardano’s pullback
Cardano has been struggling with underperformance for quite some time. During the 2020-2021 bull run, the ADA token once reached an impressive third place in the crypto rankings, rising to a high of $3.10. However, the coin has shown little positive price action since then.
Cardano’s price has since dropped significantly, sitting at just $0.34 at the time of writing. This prolonged downtrend highlights the challenges Cardano is currently facing in an increasingly competitive crypto market.
The Remarkable Rise of Tron (TRX)
Tron’s TRX token has been performing remarkably well in recent times. The coin has gained a whopping 98 percent in the past year and is currently trading at $0.1482. This strong rise has seen Tron overtake Cardano in the crypto rankings.
There are certainly reasons for Tron’s impressive growth. The Tron blockchain is now the second largest in stablecoin market share, just behind Ethereum. Data collected by Coin Metrics Network shows that the stablecoin supply on Tron currently hovers around $61 billion, which represents 38% of the total stablecoin market share, which stands at $161 billion. This is a significant increase from the $46.6 billion that Tron managed a year ago.
In addition, memecoins on the Tron network are also gaining popularity, contributing to the increasing use of the blockchain. These developments are beneficial for the TRX price, as they not only boost the use of the Tron blockchain, but also strengthen investors’ confidence in the future of TRX.
Cardano’s battle for relevance in the crypto market
This isn’t the first time ADA has lost its position in the upper echelons of the crypto market. In May, Telegram-backed token Toncoin (TON) climbed into the top 10 crypto rankings, overtaking ADA. Following this shift, TON became the ninth-largest cryptocurrency by market cap.
Since its founding in 2015 by a team led by Charles Hoskinson, Cardano has developed several products with the aim of making the world a better place.
One example of this is Emurgo Africa, which aims to foster blockchain innovation on the African continent. Despite these efforts, Cardano is often referred to by critics as a “ghost chain,” with only 23,805 active wallets, compared to Ether’s 350,000 and Tron’s 1.9 million, according to data from DeFi Llama.
Cardano’s deficit is further highlighted by the total value locked on the network, which stands at $177 million — good for 29th place — while Ethereum, Solana and Tron occupy the top three positions.
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Source: https://newsbit.nl/cardano-verliest-plaats-in-top-10-cryptomarkt-terwijl-trons-trx-stijgt/
