The total market capitalization of smart contract platform Cardano ($ADA) has surpassed that of popular meme-inspired cryptocurrency Dogecoin ($DOGE), at a time in which $ADA has been recovering from its second-largest drawdown ever.
At the time of writing, Cardano is the eighth-largest cryptocurrency by market capitalization after surpassing the $12.09 billion mark, with its price rising over 8% over the past seven days alone, and over 31% over the past 30 days.
Meanwhile Dogecoin of the ninth-largest digital currency by market capitalization at $11.16 billion, with its price rising by 7.14% over the past seven days. Over the past 30 days, $DOGE is up by around 9%, meaning it significantly underperformed Cardano.
As CryptoGlobe reported, most holders of the meme-inspired cryptocurrency remain in a state of profit, despite an over-year-long bear market in the cryptocurrency space that saw the value of most digital assets plunge.
According to data from on-chain data firm IntoTheBlock, 57% of addresses holding Dogecoin are in-the-money, meaning they bought their DOGE tokens below current market prices, while 41% of holders are out-of-the-money, or bought their DOGE above current market prices.
Also read: Does Dogecoin Have a Cap or Supply Limit?
Cardano’s price has notably been recovering this year from what was its second-largest drawdown. According to CryptoCompare’s latest Asset Report, the smart contract platform’s native token ended the year at around $0.25 after losing 81.2% of its value over its 12 months. The loss marked its second-largest drawdown, behind a 94.3% drop in the 2018 bear market, when ADA dropped from $0.71 to $0.04.
The drop notably also marked the third decline in yearly performance in Cardano’s history. The cryptocurrency’s recovery came whale addresses recently restarted accumulating $ADA, which could be a main validator to watch for the cryptocurrency’s breakout. After dumping over 560 million $ADA over the final two months of 2022 $ADA whales have restarted accumulating this year, adding 217 million tokens to their stash so far.
As reported, Input Output Global (IOG), the company responsible for Cardano’s research and development, has recently announced the release of a software toolkit later this month that will allow developers to deploy custom-built sidechains on the Cardano network.
The move is set to improve the overall ecosystem of the Cardano blockchain, as IOG noted that “purpose-built solutions are crucial for communities to address unique social and technical needs,” with Cardano sidechains being “custom solutions” that “sovereign communities” can build on a secure, interoperable parent network like Cardano.
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