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Is Cardano a Good Buy?

Before buying Cardano, you should consider researching the coin's fundamentals, reviewing your portfolio and setting a budget.

8 Min Read
Last Updated April 23rd 2021

Cardano has a low price and its value is expected to go up according to crypto experts.

Want to buy Cardano? Here's what you need to know

Cardano has solidified its place as one of the most important cryptocurrencies in the market. But is investing in ADA a good idea?

Cardano started the year 2021 with a wild momentum that peaked on 14th April when it set a new all-time high of $1.56. Since January and through to April 20th 2021, ADA tokens have witnessed a 650% price jump – from $0.20 on 1st January to an average of $1.30. Its market capitalization has also grown to more than $40 Billion, helping it dethrone Polkadot and become the 7th largest cryptocurrency by market capitalization.

So, is Cardano a good investment?

Generally, Cardano can be a very good and lucrative investment. Cardano has a lot of potential to grow in the future, so the odds are that the digital asset is a good buy.

Analysts and crypto price prediction websites have expressed a lot of confidence in ADA’s future price performance. But is Cardano a good buy for 2021? Why should you consider investing in ADA, and what will the altcoin be worth by the end of the year?

We answer all these and tell you whether Cardano is a smart buy for 2021 in this ADA investment guide.

Is Cardano a Good Buy in 2021?

If you are planning to buy Cardano at the best possible price, then this year may be a good time to buy as the value of ADA is expected to increase in the long-term.

Different analysts and crypto price prediction websites like Capital.com, Yahoo Finance, and even Nasdaq.com have featured Cardano prominently on their list of the best crypto buys for 2021.

Cardano prices started rallying as soon as the altcoin launched in 2017 and reached a peak less than four months. It then they then dropped below $1 and traded within the margins of $0.9 and $0.02 for more than three years. In October last year, however, the digital currency started gathering momentum, reaching $1 in February and setting another all-time high in April.

What informed the rally? To a large extent, the unprecedented Cardano price action can be attributed to the ongoing market rally that saw virtually all the leading cryptocurrencies set an all-time high. It can also be traced back to the momentous milestones rolled out by the Cardano blockchain the last few months.

The blockchain has not only entered into several strategic partnerships but has also lived true blockchain technology’s decentralization mission. Cardano has, so far, partnered with educational institutions, manufacturing companies, and even agribusinesses that are using their blockchain to develop different programs and systems.

The hard fork upgrade to the Cardano Mainnet on 1st March has nonetheless been touted as having the greatest impact on the current and future ADA price rally. Dubbed ‘Mary’, the upgrade saw Cardano become the first blockchain ever to achieve 100% decentralization, lay groundwork for the creation of smart contracts on the blockchain, and its integration into the DeFi ecosystem.

Buying Cardano could be a smart move as it continues to see growing adoption across the industry. This forward-looking cryptocurrency has efficiently established its market niche for years to come.

Read Also: Ethereum vs Cardano

buy cardano

Is it Smart to Buy Cardano?

The general optimism with which different analysts view Cardano and its price outlook affirms that it is smart to buy altcoin.

On-chain metrics have also indicated an increased investor interest in the cryptocurrency, evidenced by the increased number of new Cardano addresses. An equally important reason why you may consider investing in Cardano is the fact that the altcoin has recorded a highly attractive ROI since inception – as much as 7,000% - making it appeal to both medium and long-term investors.

In addition to these, there are numerous other factors that make Cardano ADA crypto a smart investment for short and long-term HODLers.

The factors listed below make Cardano (ADA) one of the best Crypto coins to invest in:

1. Incorporation into the DeFi network

The Decentralized Finance ecosystem is currently enjoying a maddening growth momentum. Look at it this way, in February 2020, the value of crypto locked in here had just crossed $1 Billion. Twelve months later, DeFi is a $50 billion behemoth.

Cardano couldn’t have joined the ecosystem at a better time. Given its competitive edge over most of the networks on DeFi, we can only expect it to attract decent attention in the next few months, which swell its already high token prices further.

2. Legitimate Ethereum alternative

Cardano is by far the most formidable Ethereum competitor. Unlike other BTC and ETH forks like BTC Gold or ETH classic that add no real value to their parent networks, ADA has come up with a well-thought-out plan on how to address the numerous drawbacks affecting traditional crypto networks like Ethereum and Bitcoin.

Cardano has come up with a faster, more scalable, and more decentralized network – which makes it the best Eth alternative.

3. Experienced development team driving ADA momentum

Cardano has a solid team behind the development of its network, whose achievements include launching the first peer-reviewed consensus protocol – Ouroboros.

Their experience is then matched with 5 Billion ($6 Billion by today's ADA/USD exchange rate) Cardano altcoins that have been dedicated to financing the future development of the fund. Both these facts are great confident boosters for individuals and enterprises looking to build on the network.  

Check Out: Will Cardano Price Double Due to DeFi in the Future?

What will Cardano be Worth in 2021?

Cardano is exceedingly bullish and has maintained its valuation above the 2018 all-time highs for more than two months. The bullish price action follows the major protocol upgrade to its mainnet and is in line with the ongoing crypto rally. Crypto analysts don’t expect this momentum to die down any time soon.

Technical analysis by LongForecast indicates that the Cardano coin will sustain a meek uptrend for the better part of the year. They expect the ADA altcoin to peak in October and set a new all-time high of $1.69 but eventually skid and end 2021 trading at around $1.24.

PrimeXBT ADA price analysis indicates that the Cardano altcoin has already formed a bearish pattern. They expect it to test lows in the next few months before consolidating and embarking on another bull run that sees Cardano break above $2 before the end of 2021.

FXLeaders are equally optimistic about ADA’s future price performance. Their analysis suggests that optimistic market sentiments and anticipation for upcoming protocol upgrades, especially Voltaire, will drive the Cardano altcoin price above $1.80 by December 2021.

Tradingbeasts, on the other hand, expects ADA tokens to end the year trading at around $1.65, while the Wallet Investor expects Cardano to reach $1.80 by December 2021.

Don't Miss: Cardano Price Prediction 2021-2024

Will Cardano Regain its All-Time High?

Cardano crypto market sentiments flash a strong buy, and analysts point are largely optimistic about ADA’s future price outlook. However, this confidence isn’t reflected on the cryptocurrency’s on-chain metrics that point to a bearish future.

Analysis of the cryptocurrency using the IntoTheBlocks signal metrics indicates a neutral but bearish-leaning market outlook for the Charles Hoskinson-led crypto project.

While the data shows an increased number of new ADA addresses, the number of traders that have held the altcoin for more than 12 months (Whales) has shrunk to 12%. The coin ownership is dominated by short-term traders who have held the coin for less than 12 months (54%) and active traders who have held the coin for less than a month (34%). Similarly, the number of ADA transactions above $100,000 has been on a gradual decline.

These factors point to a possible leadoff for a bearish ADA price-performance – possibly extending the time it will take the altcoin to regain its all-time high.

Will Cardano reclaim its all-time high? It is highly probable. Analysts are confident that the ongoing crypto rally and the hugely optimistic outlook for the ADA coin will ignite FOMO. This will, in turn, jumpstart a new rally that helps Cardano set a new all-time high before the end of 2021.

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Key points:

  • Cardano (ADA) is currently enjoying its biggest bullish rally yet, which saw it set a new all-time high of $1.56.
  • Analysts and Cardano investors are hugely optimistic about the future of the ADA altcoin most expect the altcoin to rebound and set a new all-time high before December 2021.
  • Upcoming upgrades to the Cardano, the ongoing crypto rally, and FOMO are expected to continue driving up the ADA prices in the next few months.
  • Onchain metrics are largely conservative and indicative of a looming bear turn.
  • Analysts are, however, confident that FOMO and huge optimism about the coin’s price performance will probably save the day and prevent the bear run. 

Read More:

Bitcoin vs Cardano

Is Cardano Worth Buying

Could Cardano Be a Millionaire-Maker Coin?

Cardano Price Prediction - Will ADA Value Rise?

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