The cryptocurrency ADA has been widely praised by Ethereum’s creator, Vitalik Buterin. With the coin finally soaring to new highs and increasing 12% in the last 24 hours, could Cardano reach $10?
ADA’s Price Performance
As of November 9, 2021, Cardano was trading at a level of $2.27. The coin is finally up by more than 12% in the last 24 hours, with a market cap of over $75 billion. (CoinMarketCap).
But, let’s take a closer look at the coin’s performance in 2021. Early 2021 was a huge boom period for all cryptocurrencies around the world. On January 1, 2021, ADA was worth just over $0.1814, and in just two weeks, it doubled to $0.3654. With steady performances till February, the coin finally crossed $1 on the 20th of the month. While the currency was in a sideways trend throughout March and April, it rocketed off towards the end of May. Almost tripling in just a few months and created a new all-time high of just under $2.50 in May.
But things fell off for ADA and the entire crypto market towards the end of the month. The crash of May 19 saw the cryptocurrency market cap get wiped out by almost 50%. ADA fell from the highs of $2.50 to just over $1.
Since then, ADA reached a new all-time high of $3.10 on September 2, but has corrected massively yet again. October has been a very worrying month for the coin due to the performance of some of the other big coins. ADA has fallen from the third to the 4th largest cryptocurrency globally after being replaced with the Binance coin. Apart from this, other big coins like Bitcoin and Ethereum have made all time-highs after surging to $68,000 and $4,700, respectively.
Cardano Smart Contracts
One main reason behind Cardano’s excellent performance in May was the upcoming smart contracts upgrade on its blockchain. Being a Proof of Stake network, Cardano was still way behind Ethereum due to the latter’s integrated applications of dApps, NFTs, and other projects due to the existence of smart contracts. Cardano surged to its all-time high of $3.10 because of the rumored introduction of Smart contracts, which would have been introduced later in the month.
On September 8, Cardano made it official. Smart contracts would be launched on September 12, which would bring the much-anticipated upgrade to the public. The development team behind Cardano, which goes by Input-Output Honk Kong, confirmed the news on Twitter.
But funnily enough, after soaring its way throughout May and the first week of September, the coin began to tumble not long after the announcement. Since the previous price increase was already triggered due to the rumours, there was no fuel left in the tank.
Vitalik Buterin on Cardano
Vitalik Buterin was invited to a podcast on Lex Friedman’s YouTube channel, where he discussed a lot about the various cryptos existing in the space. But for a small chunk of the conversation, the two decided to discuss Cardano. In case you are not familiar, Vitalik Buterin and the current creator of Cardano, Charles Hoskinson, were two of the eight original founders for Ethereum. They had worked together for many years to develop the cryptocurrency, but Buterin eventually kicked Hoskinson out.
The reason for this is rumoured to have been due to the different approaches on how they wanted to commercialize the coin. On being asked about their relationship, Buterin went on to say that he believed Charles was a very different man from who he used to be back in 2014. Despite having a few reservations about Cardano, Buterin believes that Cardano is a very good cryptocurrency and definitely one that will grow in the years to come.
Vitalik also stated that, unlike his own cryptocurrency, Cardano must be peer-reviewed by experts. Although the slower testing means a gradually slower development process as compared to Ethereum, the billionaire also stated that Cardano is trying to build upon some of the issues of Ethereum itself.
It is pretty known in the cryptocurrency space that one of the biggest drawbacks of Ethereum is the scalability issues among a few others. Many cryptocurrencies like Matic and Polkadot are trying to solve scalability for Ethereum by adding their own blockchains on the existing network, but Buterin himself states that Cardano’s progress with this is quite interesting; he thinks that it will definitely take time for the coin to grow, but it can only progress further in the years to come.
Surprisingly enough, Buterin was not scared to weigh the benefits of Cardano as compared to his own coin. While Ethereum uses more innovative arguments, Cardano looks to academic proofs. For one of the biggest crypto influencers to state that Cardano is coming up with some of the most exciting ideas, it is a real benefit for the ADA community.
Cardano is working hard to catch up to Ethereum in becoming the internet’s main host of dApps, however, their biggest problem is the lack of adoption. Ethereum has the first-mover advantage and has almost 70% of all apps existing on its network. One of the biggest decentralized finance projects is the deployment of NFTs. The biggest site that hosts NFT auctions and the buying and exchange of NFTs is OpenSea, which was created on the Ethereum blockchain. It requires users to trade NFTs in Ethereum, making it very challenging for the likes of Cardano to catch up.
Cardano Price Prediction
Long-term price predictions are mostly bullish for Cardano. According to Coin Price Forecast’s ADA price prediction, it is expected that the coin could reach as high as $3.41 by the end of the year. This is slightly higher than the coin’s ATH, and the current bull-run and the positioning of cryptos make it seem possible.
Digital coin price’s forecast may be a dream come true if it actually happens. While the site predicts a price of $3.39 for ADA by the end of the year, it also predicts the coin to pass $10 by 2028. Although that may seem like a far way to go, it is an almost 5X increase for the coin. ]
It is important to note that the cryptocurrency market is extremely volatile. We try to provide you with the best information available, but the coin’s price is likely to change every week, let alone in the years to come. So make sure to conduct your own research before investing in any cryptocurrency.
ADA also promises to one-up the issues of Bitcoin’s mining problems and Ethereum’s decentralization, giving it a lot of scope to grow in the years to come. With great characteristics like low pricing, lower fees and fast transaction times, ADA is a great coin to have in your portfolio. From integrating smart contracts to developing DeFi networks and dApps, no one knows what lies ahead in the future for ADA. $10 may sound improbable now, but in a couple of years, things might be slightly different.