Elon Musk sparked a debate that also had an impact on the market. Bitcoin relies on mining. This puts an unnecessary burden on the environment and therefore Tesla no longer accepts BTC, according to Musk. The Bitcoin price then collapsed and tore the entire market down with it.
But now that the smoke has subsided, the market is picking up speed again. Bitcoin is approaching the $ 50,000 mark again, and altcoins and tokens are also recovering. Cryptocurrencies that rely on proof of stake or related consensus mechanisms perform best.
It can be observed here that this is not just recovery, but a real strengthening of a number of cryptocurrencies.
The ADA course was unaffected by the crisis. At the time of going to press, the price stands at $ 2.37 and has so far made no move to change direction. With this, Cardano surprises again, because the development is in full swing, but the ecosystem is still in its infancy compared to Ethereum.
So the market is heating up in anticipation of what Cardano wants to deliver later this year. In addition, they show a particularly high level of commitment in some African countries and want to provide infrastructure there via blockchain. What can be implemented from the plans and what is part of the marketing strategy also remains to be seen.
Even critical comments from billionaire Mark Cuban cannot currently tarnish ADA’s price rally. The fact that Cardano is betting on Proof of Stake could also come in handy in the future.
The Solana blockchain also relies on a mixture of proof of stake and proof of history. After taking a roller coaster ride, the SOL course encounters resistance at around $ 47. Solana also did a decent rally on the course this year, although here too many things are still in their infancy.
After all, with Raydium and Serum, two DeFi protocols are available that have successfully managed to create a market. This means that you are still small in growth, but you could manage to convince with lightning-fast transaction times and extremely low fees in the future.
While the market for altcoins has been in great flux in recent weeks, the DOT price has remained trapped in a wide range. A first test of the US $ 50 mark took place yesterday. If the bulls can keep the pressure going, a breakout is likely.
Polkadot also does without proof of work. As with the other two competitors, there is still a lot of work to be done here. Polkadot is growing, but the crown still remains with Ethereum.
The proof of work that could be traded as a green alternative is also an issue for Tezos this year. The advantages of the low energy consumption of the Tezos blockchain were already discussed in March.
After Musk dropped the bomb, it was advertised directly with its own environmental balance. In the end, however, that can’t help the XTZ course. It hit an annual high of $ 6 in early May, but overall performance is worse than BTC. It is questionable whether Tezos can ride the green wave and be successful with it because that is not a unique selling point. The proof of stake will become an increasingly important topic in 2021 but is already foreseeable.
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