Cardano is one of the biggest cryptocurrencies that exists currently in relation to its market capitalization.
It is an evolved version of a cryptocurrency influenced by the Ethereum idea of setting up a blockchain. It’s sustainable, flexible, and can be used easily to run smart contracts in the development of a varying range of decentralized finance apps, games, crypto tokens, and much more.
Cardano was set up, unlike any other Bitcoin model with the basic operation running in the proof of stake model instead of the proof of work model used by Bitcoin.
In this article, we will look at how things are set up whether it is in favor of or against the recent crypto sensation project Cardano(ADA).
The cardano(ADA) coin was first launched in September 2017 by Charles Hoskinson, one of the co-founders of the Ethereum network. It aims to be a third-generation blockchain (blockchain 3.0) project.
Charles Hoskinson, the Co-founder of the movement has himself said that he firmly believes that this movement will eventually become the financial operating system of the World and will enable countries, individuals, the rich, and the poor to work together to actually create a world that is fair.
These words of conviction that exude such an amount of confidence are something that people expect from every crypto project head and Charles seems to have managed to earn it for himself and his team.
In this article, we will look at the various factors that could affect the price and popularity of Cardano(ADA)
Functionalities of Cardano
The Cardano (ADA) runs on the proof of stake model which helps to keep the network running by rewarding the members of the network called the ‘validators’ by paying them with their native cryptocurrency ‘ADA’.
The proof of stake model helps to save energy as their native tokens are created through the same ADA model which makes Cardano more sustainable and its native assets “first-class citizens” in the network as quoted by the nonprofit Cardano Foundation.
Cardano’s Market Run
Since its launch in September 2017, Cardano hit its all-time high at $3.101 on September 2, 2021, and is currently trading at 0.44 USD.
The coin at the time of writing this article seems to be down 1.83% from its previous value. This seems to be an alarming factor for many investors as the coin seems to have showcased unstable ups and downs along its journey since its launch.
Major crypto analysts predict the price of Cardano to rise to 0.49 USD by 2025 and to 0.52 USD by 2026.
The $25 mark set on the price of Cardano at present seems too unrealistic to be achievable in a short period of time, yet it still cannot be proven to be unattainable looking at how most of the popular consensus seems to make a bet on the long-term growth and adaptation of the third-generation blockchain project as the catalyst for the boost in the currency’s price increase.
Market Outlook for Cardano
One of the main setbacks that seems to have caught the eye of market analysts is the capitalization of the crypto market to cross the 10 trillion mark in the near-predicted future.
The lack of people and countries that have adopted the crypto market seems to be another setback for the coin as it’s one of the few things that seems to be affecting its market growth.
However, the Cardano cryptocurrency seems to have a lot of potential with regards to various reasons, one of which seems to be due to the benefits of having a huge consumer base that it can utilize to catapult itself into the mainstream crypto market.
With the current popular market for crypto, most of the value for the other coins seems to be largely assigned based on their popular adaptation for trading use.
Cardano’s advantage over the other coins currently in circulation seems to be that its chances of adoption according to the market demands for versatility and practical application are much higher considering its technological advancements.
With the recent development on its technological side, it seems as though the compatibility of the coin is likely to increase further than normal expectations and at an even faster pace than previously anticipated.
Also, Read: Cardano Price Prediction And Future Outlook
Conclusion
With the changes happening in the crypto world, Cardano(ADA) with its cheap transaction fees, listing on every major exchange and it’s market capitalization stands a chance to take over as a major player if it manages to get ahead of other layer-1 protocols, such as ether, Solana, etc.
One of the things that might be difficult to solve would be the constant loss in value that the coin suffers from due to the lack of progress and tight competition that they face.
The major question to be answered thus is whether there will be widespread adoption of the technology large enough to give it a boost in its market value.
In summary, the best bet for Cardano (ADA) will be to focus on its technological aspects to carry itself to higher limits in the market instead of through its external market value indicators.
