Big bets on DeFi's future and it may be the edge ADA-USD it needs to outperform its competition in the long run
Though a relatively new coin in the crypto space, Cardano (CCC:ADA-USD) has gained much traction among investors. ADA-USD has returned a whopping 1,134.5% since the beginning of the year and has recently become the third-most valuable cryptocurrency. It’s locked in a battle with Ethereum (CCC:ETH-USD)to become the main host of DeFi Apps and is so far doing incredibly well in building a robust foundation for the future.
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Cardano was developed by the co-founder of Ethereum, Charles Hoskinson. It works on a proof-of-stake (PoS) protocol, where miners have to stake their crypto holdings to verify transactions. This results in lower gas prices and significantly faster transaction times.
Cardano still has a long way to outperform the crypto juggernauts in Ethereum and Bitcoin. However, it is a cryptocurrency with long-term potential to perform and hold its own during market dips.
Cardano’s Edge Over Its Competition
Cardano has attracted a lot of attention of late due to its scalability and low gas prices. Gas prices are a major concern for miners and have proven to be remarkably volatile in the past few years. Ethereum will be addressing these issues in its transition toward a PoS model.
Cardano currently boasts a fee of around 0.17 ADA, but this could change once the network gets congested. At this stage, virtually every cryptocurrency, including ADA, is a work in progress. Still, integrating smart contracts could give it a massive edge over its competition on the DeFi landscape.
Another element in Cardano’s favor is its dual-layer design which essentially separates the computations from the settlements. Ethereum, for instance, is a single-layer environment where virtually every element, including settlements and token transfers, occurs simultaneously.
The separation allows ADA to be run transactions with greater efficiency and at lower costs. Moreover, it uses almost no energy due to its closed-loop system. It uses an algorithm called Ouroboros, a symbol representing a serpent with a tail in its mouth. It is perhaps the most apt physical depiction of the proof of stake process.
Application In The DeFi Sector
Perhaps the most important aspect to consider with ADA is its pertinence in the DeFi realm. It already runs on a proof of stake network but lagged behind Ethereum in terms of smart contracts support until the release of the Alonzo hard fork. The Alonzo hard fork will facilitate the creation of smart contracts and the conversion of ERC20 tokens on the network. ERC20 tokens are typically behind most smart contracts and act as payment units, transaction units, and incentives.
Recently, Cardano’s commercial arm, EMURGO,invested$100 million to accelerate DeFi, non-fungible tokens (NFTs) and blockchain education efforts to improve ADA’s ecosystem. Moreover, EMURGO will also be investing in African startup hub Adanian Labs to create a dedicated operation from 2022.
Cardano will also enable a new DeFi stablecoin called Djed with its payment provider, Coti. The stablecoin will ensure price stability and help investors avoid high transaction fees.
All in all, it seems that ADA has impeccable fundamentals as we advance. Its dual-layer system and established proof of stake protocols will create a more conducive environment for hosting tokens and decentralized finance apps.
Bottom Line On ADA-USD
ADA-USD has been one of the top-performing cryptocurrencies since the beginning of the year. Its relevance in the DeFi world is what has investors salivating about its long-term prospects.
With smart contracts, it can now go toe-to-toe with Ethereum and expand its influence in DeFi. Additionally, it is investing a sizeable amount of its resources in improving the robustness of its platform. Hence, ADA-USD is a crypto to go long on.
On the date ofpublication,MuslimFarooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
FAQs
Dan Gambardello, a Cardano enthusiast, predicts in this video that Cardano has a realistic chance of hitting $11 in this bull run—at some point in 2025. According to the Changelly Blog's ADA price prediction, the coin's price could reach highs of $1.48 in 2025, and highs of $9.71 by the end of 2030.
Why is Cardano a bad investment? ›
Regulatory scrutiny and significant advancements in layer 2 blockchain technology further threaten the progress of projects building on Cardano. While Cardano was built to address the shortfalls of competitors like Ethereum, it has struggled to gain any significant level of adoption.
Is Cardano a dead project? ›
Despite its challenges, Cardano remains a significant player in the market, known for its unique features and potential. Its focus on sustainability, scalability, and interoperability sets it apart from other projects and positions it as a strong contender in the cryptocurrency landscape.
Is Cardano a good investment in 2024? ›
ADA's price might hit $0.93 in 2024 and could circle back to the same point in 2027. The bullish price prediction for 2029 is $2.36. With increasing demand, the price of ADA could change hands at $3.72 in 2030.
What could Cardano be worth in 5 years? ›
Coinpedia platform predicts Cardano could reach $9.12 to $10.32 by 2030, and experts from Changelly forecast that it could reach minimum and maximum prices of $0.8 and $1 by the end of 2025. By the end of 2030, the price of Cardano could reach $5.50 to $6.58.
How high will Cardano go in 5 years? ›
Cardano (ADA) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 0.462801 |
| 2026 | $ 0.485941 |
| 2027 | $ 0.510238 |
| 2030 | $ 0.590664 |
1 more rowADA Price Prediction 2025
The year 2025 could signal growth for ADA, with prices potentially oscillating between a low of $1.81 and a high of $2.42. The average price during this period could stand at $2.115.
Can ADA reach $10,000 dollars? ›
To Reach $10,000 a coin it would need to do 37,037x = $455.55 quadrillion in fully diluted market cap value. Just know. I do think that long term, ADA could hit $1.2 trillion in FDMC if it succeeds in beating the SEC case, registering with the CFTC, and retaining its position as a top 3 L1 coin.
Should I buy Solana or Cardano? ›
Cardano vs Solana FAQs. Why Solana is better? Comparing Solana vs Cardano, Solana offers vastly faster speeds of 65,000+ TPS, lower average transaction fees of $0.00025, and has seen more rapid adoption and growth in areas like DeFi protocols (100+ vs 15 on Cardano) and daily active users.
Is Cardano going to explode? ›
Analysts predict that Cardano's ADA, currently priced at around $0.46, could replicate its 2021 surge, with an optimistic target set at $7.80.
Cardano ADA Overview
According to our Cardano price prediction, ADA price is expected to have a -0.57% decrease and drop as low as by May 16, 2024. Our analysis of the technical indicators suggests that the current market feeling is Bearish Bearish 89%, with a Fear & Greed Index score of 66 (Greed).
Could Cardano go bust? ›
Cardano's chance of devaluation is under 33% at the present time. It has slight odds of undergoing some form of financial distress in the near future. Probability of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions.
Can ADA reach $20? ›
Will Cardano reach $20? For Cardano's ADA to reach $US20, its market capitalisation would have to be around $US700 billion (which is $US20 multiplied by its circulating supply of 35,045,020,830 ADA). Although Cardano hitting $10 is a probable reality we should keep our eyes on, 2023 may not be the year it happens.
How high can ADA go in 2024? ›
CoinPedia's 2024 Forecast for ADA's Price
| Year | Potential Low | Potential High |
|---|
| 2024 | $1.37 | $2.02 |
Feb 20, 2024
At the same time, Coinpedia, another notable crypto portal, forecasts ADA to surge to $2 by the end of 2024. “The Cardano coin price brings a buying opportunity as it may soon cross $1 and reach the $1.5 mark. Therefore, with a bull run in 2024, Cardano may rise to create a new swing high of $2.02.
Can ADA hit $10? ›
Therefore, we came up with a target of $6, which demonstrates the subjective nature of this projection. In conclusion, ADA has the potential to reach a new all-time high, but the $10 target is arbitrary and unsubstantiated.
Can ADA Cardano reach $100? ›
Even though we think that Cardano reaching $100 is highly unlikely, that doesn't mean that Cardano doesn't have the potential to increase in price. From a fundamental standpoint, Cardano still has a lot of upside potential since the project still has many key milestones ahead of it.
How high can Cardano go in 2030? ›
In the CoinMarketCap community, the member RippleCoinNews has posted a price prediction for Cardano for the coming years, predicting a high of $1.08 in 2025 and a high of $7.31 in 2030, and even an average price of over $100 in 2050.
