Cardano has surpassed Bitcoin as the most common digital investment asset among users of the eToro trading platform, according to the company’s second quarter report.
Bitcoin demand rose 42%, but Cardano, with a 51% increase, was even more popular. Analysts called the observed dynamics “unexpected”. Cardano is currently the fifth largest asset in the cryptocurrency market with a price of $ 1.33 and a capitalization of $ 42.5 billion.
“In the second quarter, Cardano provided a clearer roadmap for the upcoming Alonzo hard fork,” writes analyst Simon Peters. “If successful, it will bring smart contract functionality, allowing for the first time to write and deploy smart contracts on the Cardano blockchain.”
Peters calls the upcoming update “significant” as it will bring Cardano closer to being a “real competitor” to Ethereum.
“The ADA price is up 15% in the last quarter, suggesting investor optimism about the Alonzo hard fork and Cardano’s ability to compete with Ethereum over the long term,” he adds.
In general, the service is seeing an increased demand for altcoins. Thus, the percentage of clients holding assets on the air increased by 79%. In addition, smaller assets, such as Tron and Ethereum Classic, were of interest – their demand grew by 163% and 151%, respectively.
Most Popular Crypto Assets Among eToro Clients and Position Changes from Q1 to Q2
“The evolving asset class continues to transform many aspects of financial services, and the long-term fundamentals remain strong,” Peters continues. – While many retail investors cannot afford to own a whole bitcoin, they are starting to look at cheaper alternatives such as ADA, MIOTA and TRX, all of which are trading near a dollar or below. The rise in popularity of altcoins speaks of a strengthening ecosystem in the face of wider diversification and new areas of application.