With the surge in the number of users flocking to Cardano, several data indicates that its native cryptocurrency (ADA) will surpass Ripple (XRP) in the second quarter of the year.
Both Cardano and Ripple have been in a neck-to-neck battle for years as they continue to compete to see which cryptocurrency will rank ahead of the others in the global crypto market capitalization rankings.
Currently, XRP is leading the race and sits as the sixth-largest crypto with a market cap of $39 billion, while ADA is in the seventh position boasting a market cap of $34.3 billion.
According to an IntoTheBlock chart provided by a prominent cryptocurrency analyst Ali Martinez, the Cardano network recently recorded a significant increase in its on-chain activities.
Per the data, the number of new daily addresses increased to 112,500, representing a 167% surge from its previous record.
An increase in the number of new addresses on Cardano suggests that the market cap of ADA will soar, thus pushing the price of a unit to $2 before the end of the first quarter.
“A sustained increase in this metric generally precedes a spike in price volatility for #ADA,” Martinez tweeted.
Increase in User Activity
Cardano user activity has continued to be on the rise since last month.
Since Cardano enabled smart contract functionality, the network has seen an influx of decentralized exchanges and play-to-earn games.
Following the rollout of DEXs, the total value locked (TVL) across various Cardano protocols spiked 6,000% in one month.
Interestingly, most large Cardano investors are already preparing for the meteoric rise of ADA, as recent reports indicate that the number of large ADA holders has soared over 15,000% since December.
ADA to Surpass XRP Before Q2
Despite ADA currently trailing XRP’s market cap by nearly $6 billion, the widespread adoption of the former suggests that the cryptocurrency is set for significant growth.
Following the widespread adoption of ADA, it is expected that it will not only overthrow XRP before the end of the first quarter of 2022, the price of the seventh-largest cryptocurrency will hit $2.
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