Cardano’s ADA Surpasses BSV and LTC in Market Capitalization Amid Circulating Supply Discrepancies

Cardano’s ADA Climbs Market Capitalization Rankings

Cardano’s ADA token has surged in market capitalization, recently overtaking Litecoin (LTC) and potentially surpassing Bitcoin Satoshi Vision (BSV). However, discrepancies in circulating supply figures reported by various platforms have sparked debates about its actual rank.

Currently, ADA is positioned at either the sixth or seventh spot, depending on the data source.

Circulating Supply Discrepancies: A Closer Look

Conflicting Reports from Data Providers

• CoinMarketCap (CMC): Reports ADA’s circulating supply as 25,927,070,538.
• Nomics: Lists the figure at 31,112,484,646, a 5 billion ADA discrepancy.
• Blockchair: Agrees with Nomics’ calculation.

The Source of the Difference

According to Nomics CTO Nick Gauthier, the discrepancy arises because:

• Nomics includes ADA tokens allocated to Cardano Foundation, IOHK, and Emurgo in the circulating supply.
• CMC does not account for these tokens.

Token Distribution Details

Based on a cached copy of the Cardano Foundation website, the allocated tokens are:

• Cardano Foundation: 648,176,761 ADA
• IOHK: 2,463,071,701 ADA
• Emurgo: 2,074,165,644 ADA
  Total: 5,185,414,106 ADA, aligning with the discrepancy in reported circulating supplies.

These tokens, valued at approximately $590 million at current prices, raise the question of whether they should be considered part of the circulating supply.

Factors Influencing Inclusion in Circulating Supply

1. Lockup Mechanisms:
   If these tokens are locked and not accessible for trading, they might not qualify as part of the circulating supply.

2. Spending History:
   Reports suggest some of these tokens have been spent, transitioning into circulation.

3. Lack of Transparency:
   The updated Cardano Foundation website no longer provides information on token distribution, creating ambiguity.

ADA’s Remarkable Bull Run

Price Performance

ADA has experienced a significant surge following Black Thursday:

• March 2020: Price at $0.024.
• Current Price: $0.114, reflecting a 475% appreciation.

Comparison to All-Time High

Despite its recent bull run, ADA’s price remains well below its all-time high of $1.16, set in January 2018.

Implications of ADA’s Market Position

1. Investor Sentiment

ADA’s strong performance underscores growing investor confidence in Cardano’s ecosystem and its potential as a top blockchain project.

2. Transparency Concerns

Discrepancies in circulating supply figures highlight the need for consistent reporting standards among data providers.

3. Competitive Landscape

By surpassing LTC and BSV, ADA positions itself as a serious contender in the blockchain space, attracting attention from institutional and retail investors.

Conclusion: A Bullish Outlook for Cardano

Cardano’s ADA continues its upward trajectory, bolstered by its strong price performance and rising market capitalization. However, the debate over its circulating supply underscores the importance of transparency in the cryptocurrency market.

As Cardano’s ecosystem matures and adoption grows, ADA is well-positioned to maintain its competitive edge, though addressing questions around token distribution will be key to sustaining investor trust.

To explore more about Cardano’s growth and its impact on the blockchain industry, check out our article on Cardano’s ecosystem advancements.