The Japan-based Cardano recently surpassed Binance Coin (BNB) to become the third-largest cryptocurrency by market capitalization. Like most of the other coins, Cardano seems to be having its biggest bull run this year, with the price surging above the $1 mark towards the end of February 2021. Now, with a market cap of about $34 billion, Cardano is steadily carving out a space for itself in the crypto market.
Just like Bitcoin and Ethereum, Cardano saw a sharp surge in price towards the end of 2020 and the start of 2021. The digital coin experienced its most bullish market at the start of February, where it rose from $0.35 to $0.96 in a matter of days. On February 21st, Cardano surged above the $1 mark putting it behind Ethereum in terms of market cap.
Now, with this kind of growth, ADA has got the attention of investors, and people are now wondering whether it is a good investment. In this guide, we will look at the Cardano price prediction and where the coin might be headed in the next few years.
If you are looking to add ADA to your investment portfolio, you might find this guide helpful. We will be providing some concrete price analysis to help you make an educated decision. Before that, let’s look at what exactly Cardano is and why you might want to consider adding it to your portfolio.
What is Cardano and How Does it Work?
Cardano was founded in 2017 by ex-Ethereum co-founder Charles Hoskinson. Inspired by Ethereum’s technology, Hoskinson set out to build the world’s first peer-reviewed blockchain based on some of the ideologies behind Ethereum. For instance, just like Ethereum, Cardano is a platform where other developers can create their own decentralized apps and smart contracts.
In essence, Cardano is trying to adapt and improve on what Ethereum is already doing. It has already proved to be an innovative platform with unique functionalities. According to the founders, Cardano is a third-generation blockchain that came as a result of many studies and scientific philosophy.
It is one of the few coins that is founded on the Pos (Proof of Stake) algorithm, which is more advanced than the Proof of Work that Bitcoin uses. The algorithm ensures increased stability and security both for the crypto and its users. It also makes it easier for people with more tokens in their wallets to create and add new blocks to the blockchain to gain even more tokens.
This way, the coin’s network becomes much faster, uses less mining power with increased mining speed. On the downside, the PoS algorithm makes it easy for people holding large amounts of ADA in a joint wallet to control network mining and eventually compromise the very essence of decentralization. It might also jeopardize Cardano’s capabilities and reputation as a payment system. This compromise can, however, be phased out by adding an element of randomness when selecting a channel in order to maintain decentralization.
Cardano also uses another algorithm known as Ouroboros for added network security that only parallels that of Bitcoin. Just like the PoS, this algorithm also ensures increased stability.
Overall, Cardano aims to build a digital economy using a smart combination of Bitcoin’s blockchain technology and Ethereum’s smart contracts. This will enable the network to be self-sufficient with the ability to develop autonomously when the need arises.
Just like Ethereum, Cardano also allows the creations of decentralized applications (DApps), which will potentially help widen its user base and mainstream application.
Cardano in 2021: Everything you Should Know
ADA has been under the radar for most of its 3-year existence. However, with the recent surge in price, the coin is beginning to attract some attention from both the media and crypto enthusiasts. For instance, billionaire investor and cryptocurrency hopeful Michael Novogratz recently showed interest in Cardano.
Novogratz’s interest stems from the fact that the coin has surged more than six-fold from Mid-December last year. The fact that Cardano is already on the crypto radar despite being a work in progress has left many, apart from Novogratz, wondering just where it is headed.
The coin, which is mostly billed as a better version of Ethereum, has already got investors buying into its promise even though it still has a low ROI. Currently, the platform is working on several features which it hopes will propel it to the limelight.
These include the Ouroboros technology that we mentioned above. The algorithm will be developed to be secure enough that it can be used for bank transactions. There is also the need to make the network faster than Bitcoin and Ethereum to have a competitive edge. This, coupled with decentralized applications, will soon put Cardano in the same league as the two leaders.
Cardano’s co-founder Charles Hoskinson has also recently announced that more than 100 companies are ready to ditch Ethereum for its technology. Although some experts have since rubbished these claims, Hoskinson, together with some ADA ambassadors, is confident that the cryptocurrency will soon dethrone Ethereum.
Cardano Price History
Just like all the other cryptocurrencies, Cardano started from a humbling low. When it was launched in September 2017, Bitcoin was already trading above the $4000 mark with a market cap of more than $328 billion. So, obviously, the future was blick at this point, and it will take Cardano years before it can attain these numbers.
However, compared to other cryptocurrencies, Cardano’s price didn’t stagnate for long as the world was already familiar with the concept of cryptocurrencies. It is, therefore, safe to say that the ADA had a promising entry into the market. With aggressive marketing, media coverage, and an ICO that raised over $63 million, Cardano quickly soared and hit a market cap of $600 million by October 2017.
Early cryptocurrencies took long to attain that market cap and even longer to be listed on any exchange since there were none at the time. Cardano came at a time when cryptocurrency exchanges had mushroomed and were quickly picked up. This gave it a much-needed exposure that pushed its market capitalization to $3.5 billion towards the end of November 2017.
In mid-December 2017, Forbes reported that Cardano had hit a market capitalization of $10.4 billion to become the 6th largest cryptocurrency in the world. At this time, it was trading for around $0.45.
That price dropped and stayed low for most of 2018 and 2019 when Cardano stabilized below the $0.2 point. In 2018, it had a small stint above the $1 mark before crashing again to about $0.4.
The price began to rise again in 2020 and hit $0.2 by the end of the year. At the start of 2021, Cardano saw a crazy bull run that pushed it above the $1 mark again with a market cap of $33.9 billion. Although the price is currently fluctuating, like most of the other coins, it seems comfortable above the $1 mark and is expected to soar higher in the course of this year.
Check Out: Why Cardano Is Going To Explode
Cardano Price Predictions in 2021
Cardano has joined a list of other cryptocurrencies that started 2021 on a bullish note. Although its price is still low, it has seen significant growth and will definitely be reaching new highs this year. Already, most experts think ADA might end the year above the $10 mark. Judging from how Bitcoin and Etherum are jumping from one all-time-high to another, this seems like a perfectly reasonable number.
There are also more conservative predictions suggesting that ADA might have a hard time hitting the $2 mark this year. For instance, Longforecast.com predicts that the coin will finish 2021 at a maximum price of $1.22. Other price analysts like Tradingbeasts.com seem to agree, pinning Cardano’s price at $1.4 at the end of 2021.
According to Longforecast, Cardano might jump to $1.30 by next month and stabilize around that price with a slight drop in May. Generally, we might not see any big changes in prices for the most part of this year. That is something common with young cryptocurrencies. However, the coin might also surprise us with a healthy uptrend like its sister coin Ethereum.
The most bullish predictions revolve between $2-$10 for this year. So, it is possible that Cardano still has a lot to work on before settling on a plausible valuation by the end of 2021.
Cardano Price Predictions 2022- 2023
Just like with 2021, we do not expect drastic price changes in 2022 and 2023. Longforecasts.com predicts that Cardano will still find it hard to cross the $2 mark within this timeframe. Again, there might be surprises in both directions.
Anyway, the coin might kick-off 2022 with the same valuation it ends in 2021. That is about $1.29 or as low as $1.07 per token. The month of March might be the most promising, with the price going as high as $1.73. However, December might be a dismal month, with the price dipping below the $1 mark.
On the other hand, Tradingbeasts.com predicts that the price might just play between $1 and $1.6 with a slim chance of breaking above the $2 mark.
Cardano Price Predictions 2024 – 2025 and Beyond
While the majority of the forecasts remain bullish, all seem to point towards the fact that we might not be seeing drastic price changes any time soon. So, if these predictions are anything to go by, Cardano’s price will play below the $2 mark for pretty long.
The same goes for 2024-2025. While some analysts like Digital Coin predict the price might go as high as $3.68 by 2025 and above $6 by 2028, most are still adamant Cardano has a long stay below the $2 mark. For instance, Longforecast.com doesn’t see ADA going above the $2 mark for the next four years.
This leaves very little to talk about when it comes to the future of Cardano. This is the only cryptocurrency that most analysts seem to agree on when it comes to its future price. We don’t see wide differences in predictions as we see with other coins like Bitcoin and Ethereum. This is either a good sign for investors as they’ll know what to expect, or everyone might really be undermining Cardano.
A big part of the reason why Cardano’s price remains low is that it is still a work in progress and isn’t getting that much media attention yet. In the next few years, we should be able to tell if the price will go as high as that of Ethereum or go even lower.
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The Future of Cardano: Why Experts Think ADA is on an Uptrend
Being an emerging new technology, Cardano doesn’t have a list of experts lining up to predict its price. However, looking at its price history and a bit of statistical and fundamental analysis, we can get some figures to work with.
Currently, there are no notable individual industry experts who have come out to predict the price of Cardano in the future. Most analyses come from financial websites such as Digital Investor and Longforecast.com.
We have sampled out pieces from experts below who predict that ADA is headed for a promising future in the cryptocurrency market.
Asset rating firm Weiss Ratings rates Cardano higher than both Bitcoin and Ethereum in terms of innovation and technology. The powerful technology is affiliated with the focus on programming and research to create a more reliable blockchain.
The Cryptocurrency information site predicts that ADA will surpass the $2 mark by 2022. The site’s initial prediction that the coin would hit $1 by the end of 2020 almost came true, so we can say they have a little credibility.
CoinSwitch goes further to predict that Cardano might jump above the $3 mark in the next five years.
Although there aren’t that many industry experts backing up Cardano, many have shown interest. Soon, the coin will be a competitive Ethereum alternative after maturing enough and getting good traction.
Conclusion: So, Is Cardano a Good Investment?
several indicators show the Cardano coin might be a worthy addition to your portfolio. Already, investors are lining up to claim a share of Cardano’s future success. Whether this is out of the fear of missing out or actually believing in the promise of a better Ethereum, these early investors might soon be telling a different story.
Based on the price predictions mentioned in this guide, Cardano is a slow but stable growth. The price volatility in ADA is not as drastic as that of other coins like XRP and Bitcoin. However, this doesn’t mean that there isn’t any volatility. ADA is still a cryptocurrency and thus unpredictable.
You should, therefore, be careful and not bet your entire investment on it.
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