Cardano Surpasses $1 and Draws Comparison to the 2021 Bull Run

In the past 24 hours, Cardano (ADA) has risen by more than 10% and is now standing at $1.09 after breaking through the psychological barrier of $1. This price increase raises questions once again about whether Cardano can repeat its historic bull run of 2021.

Trading volumes for Cardano have risen by 23% to $1.62 billion, indicating renewed interest in the cryptocurrency. Breaking the $1 barrier marks a significant milestone for ADA after trading below this level for months.

Today’s rise seems to be due to new upgrades in blockchain technology and a general increase in market optimism. On January 2, the blockchain introduced the CIP-113 proposal, which enables programmable assets, enhanced security, and smart accounts. Charles Hoskinson, the founder of Cardano, stated that the blockchain is growing into a multi-chain, multi-actor network, with the Midnight update planned.

In addition, Cardano is preparing for the tokenization of Real World Assets (RWA) in early 2025, which is a crucial step for further expansion of blockchain technology. Moreover, Cardano has officially entered the Voltaire era, which is a critical phase towards decentralized governance. Additions like Mithril will further enhance the performance of the nodes in the Cardano blockchain.

Another innovation is the optimization of DApps efficiency by processing incomplete transactions. This allows Cardano to attract a broader user base with the ability to process partial transactions. With increasing trading activities and a general market recovery, ADA continues to rise in value.

Cardano’s comparison with the 2021 bull run

The recent rally of Cardano closely resembles the 2021 bull run. On-chain data shows an increase in daily and 30-day active addresses, a trend reminiscent of the historic price increase. The data shows that the number of active daily and 30-day ADA addresses has significantly increased, similar to the activity during the explosive price increase in 2021. At that time, high network activity was associated with ADA’s rise to over $3, partly due to the hope for the Alonzo upgrade.