Cardano immediately had the world’s attention when it entered the decentralized finance (Defi) market in 2015. The publicity surrounding its creation had investors ready to buy into Cardano from the initial coin offering.
This was because the existing cryptocurrency Ethereum, saw a disagreement between its co-founders, despite being Bitcoin’s closest competitor in terms of market capitalization. This led to one of these Ethereum co-founders, Charles Hoskinson breaking out on his own. Hoskinson wanted to build a profitable cryptocurrency that would be superior to Ethereum in its profitability, scalability and environmental sustainability.
These factors gave Cardano an edge even as it was entering the market and gave investors the push to invest in Cardano.
Cardano does not use the proof-of-work (PoW) blockchain protocol that many had come to know from Bitcoin and Ethereum, instead, it has pioneered a new proof-of-stake (PoS) system. This tactic has paid off for Cardano as they are currently considered to be the largest PoS cryptocurrency in the Defi market. Cardano asserts that PoS is pivotal to its success as this method is much quicker and more energy-efficient than the original PoW methods used elsewhere.
Cardano is committed to the Defi market and supports the push for financial power to be more evenly distributed globally. They are looking to use their technology to constantly upgrade and improve their protocol to keep it at the centre of the Defi market’s movements. They put security and sustainability at the centre of their methods, so it is not surprising that many have been choosing to add this promising cryptocurrency to their portfolios in 2021.
- The Cardano Timeline
- Cardano’s Environmental Push
- Cardano’s Proof of Stake Innovation
- Trading ADA to USD
- Will Cardano Rebound from the Last Correction?
- Predictions for Cardano in 2021 and the Future
The Cardano Timeline
2015 - Cardano was launched by Charles Hoskinson after he and his Ethereum co-founder Vitalik Buterin decided to go their separate ways. This was due to Hoskinson’s desire to create a more profitable business model, whereas Buterin wanted Ethereum to remain as a non-profit enterprise.
2017 - Cardano achieved a market capitalization of $10B and partnered with the University of Edinburgh to create the Blockchain Technology Laboratory.
2018 - Cardano partnered with the Ethiopian Government to utilise Cardano technologies across multiple Ethiopean industries. Cardano hit a market cap of $33B but this then returned to around $10B over the following months.
2019 - Cardano became part of the credential verification system for the US State of Georgia after discussions with Georgia’s Ministry of Education. It also became part of the verification chain for the basketball shoe manufacturer New Balance.
2020 - Cardano made a donation of half a million dollars to the University of Wyoming to fund blockchain technology research.
2021 - Cardano saw its largest surge to date and the ADA coin price finally surpassed the $2 mark. The Ethiopian Government proposed the storing of personal student information on Cardano’s blockchain system. This is to be used for all of the data collected from Ethiopia's entire student body.
Cardano’s Environmental Push
One of the main features of Cardano that has boosted its popularity is its dedication to the environment and sustainability. Cardano boasts energy usages that are four million times more efficient than market leader Bitcoin. This is due to the development of the Ouroboros protocol. Ouroboros has been credited as the first PoS protocol used in the Defi market and it is designed to be very secure.
The maths-based mechanism that is used across the Cardano network is centred around being a permissionless and secure system that can maintain low energy consumption as it expands. This makes the coin a strong contender in the Defi market as a protocol and the cryptomarket as a workable currency and a stand-out investment opportunity.
The Cardano team have put ethical processing and sustainability at the forefront. This has gotten global attention in these environmentally conscious times, boosting the profile and stock prices of the coin. These are positive factors for investors to consider when looking for an asset that will be robust against market changes.
Cardano’s Proof of Stake Innovation
One of the questions that investors consider, is whether the PoS protocol pioneered by Cardano is as good as it claims. There are several factors that you need to know about PoS.
PoS is still a type of blockchain protocol, like PoW and they are both consensus algorithms that are built to be used on distributed systems. The larger, more successful crypto coins are all built to function as distributed systems without a need for traditional centralized banking models. Each cryptocurrency should have its own collection of nodes that are set up to control what is added to a blockchain and the transactions made.
Transactions are basically additions to the blockchain and so the protocol used will determine how the verification process works when transactions are made. Having these distributed networks of nodes keeps the cryptocurrency decentralized as it does not have one board of specific people in charge of decision making.
Although these systems are very similar in some ways, PoW is slower due to the complex mathematical equations which create its extremely secure system. Cardano, by making a system that is much quicker and more energy-efficient, looks to capitalize on this speed. As they are able to make far more transactions per hour, Cardano feels that they have created a much more scalable system. Investors are looking to profit from this scalability as it allows Cardano to grow and expand at a faster rate.
The expensive energy costs of mining that are associated with Bitcoin have been replaced by Cardano with stake pools. This allows Cardano blockchain users who have the correct technology and connectivity to validate transactions which is much faster than mining. These pools are led by randomly selected leaders, which also maintains the decentralized aspect of the system.
Some investors have worried about users being available to verify the transactions made on the Cardano blockchain efficiently. However, Cardano maintains its liquidity by giving incentives to those who participate in fulfilling these smart contracts. This creates the same sort of relationship as miners have with Bitcoin, where they receive bitcoin for doing the mining tasks. This liquidity is extremely important for traders and swing traders who want to be able to buy and sell ADA tokens quickly and efficiently.
Read Also: How to Stake Cardano
Trading ADA to USD
The crypto boom of 2021 has served Cardano well. Although they are not the first coin to see a surge, there was a clear change in the previous trading pattern throughout January. The upward trend became a surge by the first week of February 2021 before returning to a more steady upward trend throughout March until the first half of April 2021. This more controlled growth period was still yielding substantial gains when the largest peak occurred on the 15th of May 2021. This peak surpassed the $2 price mark that investors had been hoping for and ADA achieved an all-time high of $2.47.
Although the correction over the following week made a significant reduction in share price, taking ADA down to $1.31, the overall performance over the past year is still impressive. This year to date Cardano has achieved returns of 634%, leaving investors with substantial profits and confidence in the crypto coin’s future.
The trading pattern following the correction looks positive as the trading mirrors the volatile motion of the period between the February and May peaks. It is too early yet to clearly measure if the fluctuations are part of a similar upward trend, but the signs are looking good for a steady price increase over the next few months of 2021. If the current pattern continues to cycle going forward, this could lead to a moderate positive incline before arriving at the next surge. Those who invested during the long resistance periods have now seen huge returns, but the more recent investors are still seeing growth which is yielding steady profits.
Will Cardano Rebound from the Last Correction?
Although the correction following the mid-May peak was substantial, it was smaller than some of the losses seen elsewhere across the crypto market during May and June trading. Some coins such as Bitcoin have had their values sliced in half. ADA follows a similar pattern of greater surges preceding larger corrections, but the results have not been quite as harsh for investors in terms of losses.
A pattern appears to be forming for ADA, where surges are followed by volatile trading which creates a slower upward movement over the course of one to two months. This is promising for this cryptocurrency as it still leaves room for investments made at this stage in 2021 to experience growth and result in profits.
If the trading cycle continues to behave in this way, then investors in 2021 should see moderate profits over the next few months into July and August. The pattern in 2021 so far is also supportive of another surge, which would more than make up for the previous correction and the resulting price dip.
Predictions for Cardano in 2021 and the Future
Cardano managed to remain bullish between the February and May peaks of 2021, which is a good sign for bullish trading to continue towards the end of the year. Cardano is also riding high on the support created following their revelations about the Cardano Foundation’s energy usage. Their publicity of this is ongoing and helps to bolster their share price. On the 31st of May the Cardano foundation had this to say:
‘The Big Mover of the week - $ADA
ADA overtook $USDT by the number of users in April!
The # of users trading @Cardano has increased by 15 times over the ½ of 2021
Start trading now on CEX·IO > https://cex.io/trade/ADA-USD
For more info about ADA visit http://cardano.org’
@cardano, Cardano Foundation Twitter Account
Cardano is confident that its support levels and adoption are rising and will continue to rise, which would support the argument for bullish trading to continue. They also feel that they have won the environmental battle against both Bitcoin and Ethereum with another post the same day reading:
‘#Cardano vs. #Bitcoin
Same level of security, yet Cardano uses far less energy! No-brainer?! Cardano for the greater good’
@cardano, Cardano Foundation Twitter Account
These factors have helped Cardano to maintain its positive momentum going forward and these are being demonstrated positively in its performance in the crypto market. The next surge may co-inside with their Alonso update, which is part of their Goguen phase of updates. As the company pushes to resolve more ways to expand their scalability and push their adoption globally this should lead to profitable returns for investors.
However, the predictions are varied currently. Some experts in cryptocurrency analysis are confident that ADA will return to the $2 mark before the end of 2021, whereas others feel that it will be a slower process for ADA moving forward.
If the higher predictions are the dominant trend moving into the future then the longer-term outlook could benefit from highs of $5.17 by the end of 2022 according to experts. These analysts also feel that bullish trading after 2022 will take Cardano past $12 in 2025, which would yield huge returns for those investing in 2021.
Cardano Trading Forecast for 2021
The expert opinions are positive regarding ADA for the remainder of 2021, but opinions about the extent of the increase are varied. Analysts for CoinWallet have set their predictions for $3.34 over the course of the next year, which would see ADA return to $2 around the end of 2021. However, CoinSwitch’s team are much more reserved, predicting a slow journey for ADA, resulting in a four-year wait before $3 is achieved.
There is a soft consensus that ADA will go up and the short term outlook is bullish. However, predictions are favouring a bear market to appear in the near future, possibly before the end of 2021.
A lot appears to be riding on the rollout of the Alonzo update, so those investing in Cardano in 2021 should keep their eyes on the movements of this process. Without the momentum created by the Alonzo launch, experts are favouring slow progress for the remainder of 2021 which would severely impact profits for new investors. If this project is launched fully by the end of 2021 then reaching highs of around $3.34 are far more likely.
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Who is behind Cardano?
Cardano was launched in 2015 when one of the co-founders of Ethereum, Charles Hoskinson decided to branch off and create his own solo cryptocurrency. He created the Cardano Foundation to develop the technology and direction of the Cardano and its native crypto coin ADA. The Cardano Foundation is situated in Switzerland.
What is Cardano?
Cardano is a blockchain protocol that acts as a public platform that allows for peer-to-peer transactions to be made. These occur using the native coin ADA and use a proof-of-stake consensus protocol to complete and verify these digital transactions. Cardano is open-source and part of the growing decentralized financial marketplace.
How does Cardano compare to the market?
Cardano is currently ranked 5th against its cryptocurrency competitors in terms of market capitalization. It has a market cap of $45.2B, at the time of writing. It is currently considered to be the highest-ranking cryptocurrency using PoS. It has experienced high levels of support throughout its existence and has held up well within the volatile Defi sector.
Should I invest in Cardano in 2021?
The cryptocurrency market is looking very volatile at this time, following the emergence of bear markets for many coins across the Defi sector. The most favourable outlook is for swing trading which would capitalize on the volatile cycles taking place within the ADA trading pattern.
The longer-term projections are positive but to achieve larger returns the wait is likely to be longer than investors were hoping for. High-level growth is only likely to begin building over the next two to five years.
Is Cardano still going to go up?
Cardano is experiencing a volatile period, but the trading patterns are favourable for swing trading, which can lead to good short term profits. The overall trajectory is positive for investing in 2021 but Cardano is not predicted to surge over the next couple of months.
It is currently unclear how long a bullish market would last for Cardano as experts are conflicted over whether the next surge will appear before or after a bear market. Before the surge, Cardano is likely to increase in price but at a much slower rate.
What will ADA prices rise to in 2021?
Several analysts are predicting a rise between $1.8 and $2 by the end of 2021. If a surge occurs before the end of the year this would greatly exceed these estimates. However, the volatile market is creating an unstable timeline for ADA’s progress.
The short term rises should achieve $2 during some of the volatile cycles so those looking to buy and sell ADA on a short term basis could still achieve profitable returns.