Not only has Cardano (ADA) been tagged as an Ethereum Killer but it is also the sixth largest digital asset by market capitalization.
This piece takes an in-depth look into Cardano, the sixth most valuable digital asset, its core areas of business, and – most importantly for prospective investors – the pros and cons which can help answer the question: Should I buy Cardano?
Cardano (ADA) has followed the crypto boom of 2021 which has seen more than 90% of cryptocurrencies and tradable tokens record new all-time highs. So far, ADA has returned 662.54% Year-To-Date (YTD) and reached an all-time high of $1.56 on 14th April 2021.
Such milestones are a bit impressive for a two-layer blockchain project which has several roadmaps leading to the creation of smart contracts that would result in decentralized protocols and applications (DAPPS), but so far has no strong single use case.
ADA has seen such a spike in price because of the accomplishments of its roadmaps which would see it scale faster. Additionally, it will provide relatively lower transaction fees as well as have new and innovative decentralized applications which would provide seamless transactions within a short period of time.
Ethereum (ETH) controls more than 80% of the decentralized finance (DeFi) space and has more than $30 billion locked in DeFi. With decentralized applications such as Uniswap, Yearn Finance and Compound raking in trade volumes in the upper side of millions of dollars, this has contributed to the overall valuation of the ETHs project which now sees the digital asset worth $2,422.49 in trading price.
Cardano (ADA) ranks number one on Sanbase (behaviour analysis and monitoring platform) in terms of developer activity with 487.1 in the last 30 days.
Will Cardano accomplish its roadmap by the end of 2021 and challenge Ethereum (ETH) and Tron (TRX) primarily as the new colonizer of the decentralized finance space? Is Cardano a good investment in 2021 and beyond? Will Cardano double in price due to DeFi in the near future?
Most importantly, for new traders and investors - what are the pros and cons that can help answer the question: Should I buy Cardano?
Cardano (ADA) at a Glance
You may have seen Cardano on financial news outlets with several price forecasts by analysts. Unfortunately, you may not know much about the cryptocurrency or its blockchain projects and may have had reservations as to what Cardano is, who is the founder of Cardano and what is the primary purpose of Cardano and its native coin, ADA?
This section of the article takes a closer look at the beginning of the blockchain project as well as its novel token (ADA), roadmap accomplishments of Cardano and the performance of ADA from its inception on cryptocurrency exchanges to the time of writing this piece.
It also looks at the future prospects of the blockchain project in terms of decentralized protocols or applications (DAPPS) and non-fungible tokens (NFTs). More importantly, why doesn’t Cardano have a single strong use case would be thoroughly assessed.
Cardano was founded by Charles Hoskinson in 2015, several months after he co-founded and then left Ethereum due to disagreements on how the project should be maintained.
Charles Hoskinson opted for a centralized approach to the decentralized project but Vitalik Buterin decided against that and maintained the project as decentralized throughout all its phases.
Hoskinson met a former associate at Ethereum (ETH), Jeremy Wood, and together they had a great idea on how to rival Ethereum.
Input-Output Hong Kong (IOHK) as an engineering company which uses cryptography to build blockchains and cryptocurrencies for corporations, government entities and academic institutions was formed in the process. The flagship project of IOHK is Cardano and its novel token is ADA, which started trading in October 2017.
There are three entities which work together to see the effective functioning of the Cardano platform, and they are Cardano Foundation, Emurgo and Input-Output Hong Kong (IOHK).
What is Cardano?
Cardano is a technological platform through its blockchain and a cryptocurrency through its novel token (ADA) which aids in the running of financial applications which are employed by business organizations as well as individuals globally.
A team of engineers from all around the world designed the blockchain project of Cardano which can be implemented easily on aerospace and banking applications (mission-critical systems).
This is the main reason why blockchain experts have touted it as the first peer-reviewed decentralized blockchain solution.
The symbol for Cardano is ₳ and ADA is its ticker symbol. Cardano offers wallets to store ADA coins and they can be stored in Trezor, Ledger and popular wallets (Yoroi and Daedalus).
Cardano has an aim of solving all the problems related to blockchain technology and its adoption by individuals and business organizations such as scalability, sustainability and interoperability.
What Is The Purpose of ADA?
ADA, through the use of cryptography serves as a primary purpose of sending and receiving money digitally in a relatively faster and easier way.
How Many Cardano (ADA) Coins Are In Circulation?
Cardano has a circulating supply of 31,948,309,441 ADA which represents 71% from a total supply of 45,000,000,000.
Where Does Cardano Operate?
The United States of America was where Cardano was conceived but the development of the project is practically supervised by the Cardano Foundation in Zug, Switzerland, Europe.
Cardano’s (ADA) Performance from 2017 to Date
ADA, unlike other cryptocurrencies, started trading with a huge volume on its first trading day on 1st October 2017 which stood at $56,765,624. It closed the day with a price of $0.026 as per data retrieved from CoinTelegraph.
Since its first trading day, Cardano has seen a meteoric rise and some bearish declines in the years which followed. ADA has along the way been tagged by several analysts as a ghost chain performing miracles on the charts since its rally has been based on “what may happen in the future”.
Competitors, such as Bitcoin (BTC), enjoy its first-mover advantage as a transactional cryptocurrency and store of value (digital gold), while Ethereum (ETH), Tron (TRX), EOS.io (EOS) and Flow (FLOW) provide decentralized finance applications to back their spike in price.
Additionally, Ripple (XRP) and Stellar Lumens (XLM) serve as cross-border payment solutions, helping several centralized financial systems work together globally. Ripple (XRP) and Stellar Lumens (XLM) have even gone on to experiment with Central Bank Digital Currencies (CBDC), with the latter forging a partnership with Ukraine to build the country’s first digital currency.
Despite the naysayers, Charles Hoskinson has followed the roadmap of Cardano to the letter with each upgrade announced and completed as planned. This has seen ADA exceed numerous expectations set forth by credible analysts and experts across several financial and more importantly, cryptocurrency news outlets.
The first version of Cardano was shipped out in September 2017 and this brought about the roadmap called BYRON. This allowed users for the first time to buy and sell ADA as a cryptocurrency on a federated network which runs the Ouroboros Consensus Protocol (OCP). This era saw the delivery of Input-Output Hong Kong’s (IOHK) official desktop wallet for ADA, the Daedalus wallet.
Additionally, Yoroi was designed by Emurgo (a sister company of IOHK) to help settle transactions in a relatively quicker manner. The main essence of the BYRON roadmap was to build a community of crypto enthusiasts who would get involved in the creation and continuous upgrade of the blockchain.
After starting on the 1st October 2018 on a strong note, ADA increased substantially due to the crypto boom of 2017 led by parent crypto (BTC) which crossed $20,000 for the first time. ADA ended up closing on the 31st of December 2017 with a price of $0.702 (ADA returned 2,600% for investors).
With such huge gains, Cardano (ADA) was predicted as the next golden goose investors should watch out for in the coming years.
2018 also saw Japan follow China into banning cryptocurrencies and this led to a bearish outlook for the cryptocurrency market. Evidently, ADA started the 1st of January 2018 with a price of $0.762 and finished the 1st quarter at a price of $0.148, signalling a bearish trend. Cardano further plummeted in price for the rest of the year and exchanged hands for $0.042 on 31st of December 2018 (overall, ADA lost 94.4882% of its price).
Many analysts started asking questions about the future of Cardano since its upgrades did not take effect as planned. With that said, founder Charles Hoskinson remained resolute and decided to take time and create a fully functioning system.
As a result, many new and experienced investors decided to keep faith in the crypto trading asset and buy the dips from 2018. Despite the interest shown by new investors and fans of the crypto, it did not save Cardano’s price. ADA initiated the 1st of January 2019 trading at $0.045 and closed the year on 31st December 2019 at $0.034 (24.4444% decrease in price).
The SHELLEY era followed and was primarily centred on decentralizing the network. The main purpose of Shelly was to achieve a smooth, low-risk transition without any interruptions. During this era, authority on the validation of nodes shifted towards the Cardano Community.
This era also brought a delegation and incentive scheme and this drove stake pools and community adoption. This scheme allowed and encouraged users to delegate their stake pools on community run network nodes and be rewarded for honest participation in the network.
At the end of Shelley, the platform became more decentralized (50 to 100 times), set the stage for a fully distributed network and brought forth a new application ecosystem.
After two years of waiting, Charles Hoskinson finally announced the launch date of Shelley from the 30th June to 7th July 2020. The historic hard fork upgrade was completed on 29th July 2020. ADA began the 1st of January 2020 at a price of $0.034 and responded well to the Shelley update by finishing the year with a 417.647% increase in price at $0.176.
The year 2021 has been a great year for ADA having seen the digital trading asset cross the $1 price mark and even hit $1.56 as its all-time high. This was achieved by a new upgrade called MARY. This upgrade came into effect on Monday, 1st March 2021.
With the introduction of the Mary upgrade, Cardano is now a multi-asset network which is similar to Ethereum (ETH) but comes with advantages. Some of these advantages include enabling users to create tokens which will lead to new features and result in new use cases.
According to Input Output Hong Kong (IOHK), “The protocol’s developers and users can transact with tokens, but without the need for smart contracts. This means sending a token on Cardano’s Network won’t be more expensive than sending its native token ADA (unlike Ethereum (ETH)”.
Aside from this, on Friday, 5th March 2021, it was announced that FD7 Ventures (a cryptocurrency fund in Dubai), after seeing one of the major roadmaps accomplished, completed a $380 million purchase of Cardano (ADA) on 4th March 2021.
Prakash Chand is the managing partner of FD7 Ventures and speaking of this huge purchase, he pointed out that “the price of Cardano (ADA) and Polkadot (DOT) could rise to approximately 20X within the next 2-3 years”.
ADA has a price of $1.42 (gained 4.60%) and has been trading between the prices of $1.34 and $1.52 in the last 24 hours. Cardano (ADA) has a trade volume of $5.61 billion and market capitalization of $45 billion which categorizes it as a large-cap asset and has so far returned 6412.64% from the time of its trading launch to its current price.
Despite this performance, what are the pros and cons of investing in Cardano in the near future?
Pros of Buying Cardano (ADA)
The impact of the coronavirus (COVID-19) pandemic on the financial markets has been extremely massive. Inasmuch as it caused a market crash, it also created an UPTREND (this happens when an asset hits new high lows which results in a cheaper price which are bought to see the asset reach new high highs) in all aspects of the markets which has seen rallies and gains for several investors.
In the early days of March 2021, Trading Education did an in-depth study on Cardano, the digital asset had a trading price of $1.11 (down 5.59%), had a trading volume of $5 billion and a market capitalization of $35 billion.
Cardano’s current valuation of $45 billion at the time of writing is good news for investors. But where does the difference come from, what drives the asset’s price, what are the pros of purchasing the crypto trading asset?
✅ Cardano Thrives On Diversity through Its Blockchain Solutions
While Litecoin (LTC), Bitcoin (BTC), Dash (DASH) and Dogecoin (DOGE) primarily serve as digital currency for transactions, Cardano is a cryptocurrency as well as technology. Cardano comprises a group of academics who are intellectuals and they seem to have taken a leaf out of a 2011 edition of Harvard Business Review (HBR) titled How to Thrive in Emerging Markets where you identify problems in certain areas and find problems for them.
Cardano as a result is providing technological benefits through blockchain for countries in Africa through its official commercial arm EMURGO. As part of Cardano’s Africa Strategy, the project has liaison with government and non-governmental organizations (NGOs) as well as start-ups that will help drive the adoption of Cardano’s technological solutions to everyday users and businesses in Africa.
Cardano has two main goals in Africa and they are, “Engage with local stakeholders in delivering projects which solve real issues in the market and train and educate local developers to create solutions for local problems”. Cardano signed a Memorandum of Understanding (MOU) with the government of Ethiopia to train and hire junior software developers as well as employ Cardano’s technology in its agriculture sector.
Coffee is the largest export of Ethiopia and Cardano will utilize smart contracts to motivate farmers to employ productive farming practices. This would help Ethiopia’s economy and, in the process, provide more liquidity to Cardano through the use of ADA as the transactional currency.
In February 2021, Cardano announced that four more countries will be added to the Africa Strategy Project and they are Nigeria, South Africa, Kenya and Tanzania.
Aside from this, another key achievement of EMURGO is the launch of Yoroi wallet. Yoroi is available on Google Play Store and Apple Store which are accessible to smartphone users across Africa. Yoroi is a light wallet on the Cardano blockchain and provides users with a fast, simple and secure access to Cardano’s cryptocurrency, ADA. Yoroi can become Charles Hoskinson’s innovations’ gateway into Africa as citizens can use ADA as a transactional currency as well as a store of value.
Cardano looks forward to achieving roadmaps such as Alonzo in the near future. On 25th March, 2021, Input Output Hong Kong tweeted, “CARDANO SMART CONTRACTS: On tonight’s #Cardano360 we shared the rollout plan for #smartcontracts on #Cardano. Here’s more on the #Alonzo roadmap from @IOHK_Charles. We’ll bring you more clips from the show throughout the week ahead, so stay tuned @Cardano”.
The Alonzo upgrade’s full mainnet launch is slated for August 2021 and this feature would allow users to deploy decentralized applications (DAPPS) on Cardano. ALONZO is an essential feature of GOGUEN.
Under the GOGUEN era, Cardano will become extremely accessible to wider audiences. This means that business and financial experts without any technical knowledge about blockchain will be able to create smart contracts.
The fourth and fifth steps are BASHO (scaling) and VOLTAIRE (governance). Once all these are achieved, Cardano will be better suited to create DAPPS which would compete with Ethereum and other smart chains and this will contribute to the real valuation of ADAs price in the future.
✅ Cardano Has a Much Larger Audience
Digital assets are not created to be hidden. It has a primary purpose of reaching more people and providing them with the solutions they need. When ADA first appeared on cryptocurrency exchanges, it was relatively unknown. It has so far gone on to be listed on all the most popular cryptocurrency exchanges in the world.
Trading on such cryptocurrency exchanges is not a golden ticket to an improved price valuation but it helps expose a digital asset to new and experienced traders and investors to consider it for addition to their portfolios.
After being listed on the largest cryptocurrency exchange (Binance) which once recorded a daily trade volume of $28 billion on 22nd February 2021, ADA has been listed by Coinbase Pro (one of the exchanges with great trade volumes). Evidently, the listing had an impact on ADAs price as the crypto trading asset closed at $1.24 after opening at $1.03 (20.38% gains within a few hours) and a daily volume of $9.5 billion on the 16th of March 2021.
When Cardano’s blockchain reaches full functionality, buying ADA will bring no stress to prospective investors. High volumes mean there is confidence in the asset and this will have reflection in the price of ADA.
✅ Scalability Gives It Competitive Advantage In Terms of Adoption
Cardano (ADA) uses “OUROBOROS”. As part of the proof-of-stake blockchain consensus protocol family, this algorithm can run both permissioned and permissionless blockchains.
With this, the Cardano Settlement Layer (CSL) holds the novel token, ADA, which keeps track of transactions and mirrors Bitcoin (BTC). Cardano Computation Layer (CCL) is the second layer which enables smart contracts and applications to run on the network which mirrors Ethereum. Evidently, in terms of transaction speed, Cardano (ADA) processes 1,000 transactions per second (TPS).
Due to upgrades which would come in the accomplishments of the roadmaps, Cardano will process more transactions than the mere one thousand numerous blockchains are used to processing. Some of such upgrades include the layer 2 solution, HYDRA.
HYDRA will boost the network of Cardano in terms of scalability which will topple the current proof-of-stake algorithm (Ethereum) currently employed on its Ethereum 2.0 platform.
HYDRA will see Cardano process over one million transactions per second (TPS) compared to the 100,000 transactions per second feature of Ethereum 2.0.
The founder of Cardano, Charles Hoskinson explained further with regards to the full operation of Hydra. In a statement, he pointed out that “Each “Hydra head” will reach the so-called “Fast Finality”, which means that the irreversibility of a transaction can be done almost in real time, as commonly used in a Byzantine Fault Tolerance (BFT) protocol”. Thanks to Fast Finality coupled with high transaction speed, micro-transactions are possible with Cardano’s blockchain.
After full functionality, Cardano’s blockchain will have some form of advantage over other smart contracts blockchains due to its unique system and its features of scalability, interoperability and sustainability.
Evidently, Ben Goertzel, a renowned artificial intelligence expert and founder of SingularityNET, has pointed out that their speed issues are directly related to it running as an ERC-20 token on Ethereum’s blockchain, which has put his project into a situation where they are considering other blockchain solutions.
Alex Mashinsky, Chief Executive Officer (CEO) of CELSIUS (a crypto lending platform) has said that gas fees on Ethereum’s blockchain are too high. He further added that his team is tired of forking out $2.5 million annually in transaction fees and may consider other options such as Cardano which offers relatively smaller fees through its novel token ADA.
✅ Cardano Is Decentralized but Centralized
The primary reason why Cardano founder Charles Hoskinson left Ethereum was because of administrative issues NOT on creative solutions. As cryptocurrencies and blockchain technologies gain more attention and acceptance in the mainstream, several regulatory bodies would respond with compliance issues.
Additionally, some may choose to offer central bank digital currencies (CBDCs) as we have seen in China, Sweden and trials in the United States government.
The vision of Charles Hoskinson may finally pay off when several crypto projects fail to meet the standards of regulatory bodies.
Suppose Ethiopia decides to create a central bank digital currency (CBDC), as a result of its partnership with Cardano, Cardano will have a competitive advantage with regards to the creation of CBDCs on the African continent. This makes Cardano censorship resistant and a crypto asset which is poised to survive all the challenges the whole decentralized finance space may face in the near future.
Cons of Buying Cardano (ADA)
Cardano looks like a good prospect without strong use cases with mere accomplishments of roadmaps in the form of upgrades. Though Cardano has great potential to provide software solutions, it does not mean it does not have its pitfalls.
Let us take a look into some of the cons of purchasing Cardano.
❌ Cardano Faces Infinite Competition from other Altcoins
Crypto projects such as Dogecoin (DOGE), Litecoin (LTC) and Dash (DASH) are not the primary competitors of Cardano (ADA), although they are alternative coins. ADA’s main competitors are the blockchains which not only use smart contracts but have hundreds of decentralized protocols and applications on the market raking in millions of volumes daily.
Ethereum (ETH) is the main rival of Cardano (ADA) after Hoskinson left the Ethereum project in 2014 and vowed to use its project to colonize the whole DeFi space and become the dominant force in terms of the adoption of blockchain.
Ethereum is one among many (Tron, EOS.io, Tezos, Flow, NEO, etc.) and they all have a use case that helps drive their decision making in terms of how future products should be designed.
Ethereum and Tron continue to form new partnerships and their use cases keep rising, bringing in trust and long-term confidence on the part of investors.
Evidently, in a report released by DAPP Reviews on trade volumes recorded from the month of April to June 2020, Ethereum (ETH) led the way with more than 85.3% ($14.27 billion) of the volume and Tron (TRX) came third with $373.58 million. Surprisingly, EOS.io came second, a huge statement to the level of competition in the space of decentralized finance.
This means that partnerships being formed by the founder of Cardano must provide unique decentralized applications. These DAPPS must command the strongest use cases which would boost the use of ADA on its platform and contribute to the overall valuation of the asset.
While Cardano continues to roll out upgrades, it does not have a single use case. Until it does and achieves full functionality, no single expert or analyst can forecast a clear price valuation for the digital trading asset.
Where Can I Buy Cardano (ADA)?
There are several cryptocurrency exchanges as well as brokerages which list ADA as tradable token. After extensive research, if Cardano fits into the asset with the future potential you crave for, then you can head to eToro and make your first purchase of ADA.
The first step is to SIGN UP.
The second step is to go through a VERIFICATION PROCESS. You will need to upload a government-issued identification card. It must include your full name, date of birth, signature and date of expiry.
The third step is to DEPOSIT FUNDS (GBP, EUR or USD).
The fourth step is NAVIGATE to ADA to purchase your first ADA coins which will be processed and added to your account.
Price Prediction of Cardano (ADA): What Are Analysts Forecasting For The Price Of Cardano?
There are great forecasts with bullish sentiments and then not-so-great forecasts with bearish sentiments. Let us find out what experts at the various online financial news and prediction portals have in store for ADA.
FX Leaders analyst Skerdian Meta foresees Cardano (ADA) trading in the price range of $1.50 up to $1.80 by the end of June 2021 due to the development of Voltaire (this will provide the final pieces required for the Cardano network to become a self-sustaining system), favourable technical indicators which points to an uptrend and a positive crypto market sentiment.
The analyst who writes for the online portal which serves as the home for forex traders foresees Voltaire (the last feature of ADAs roadmap) completed on time as well as favourable technical charts will see the the Cardano crypto trading asset exchange hands in the price range of $2 and $3 by the end of 2021.
By the end of 2024, Skerdian Meta of FX Leaders foresees an international legislation which would cut down unregulated cryptocurrencies from the market. This could, in the words of the analyst, increase the price of Cardano to trade in the range of $10 to $15.
Experts at Prime XBT foresee the formation of a bearish wedge which would lead to lows or consolidation before another push to new all-time highs.
Cardano ADA could surpass the $2 price milestone by the end of 2021 and after that maintain its bullishness and trade between $25 and $50 by the end of 2022 and then settle at $70 as by the end of 2023.
Previsioni Bitcoin foresees Cardano ending June 2021 with a trading price of $5.30 and close 2021 with a price of $7.05 for the short term.
Investimenti Magazine predicts that the price of Cardano will be traded at about $1.40 by the end of 2022, $2.5 by the end of 2023, $2.8 by the end of 2024 and $3 by the end of 2025.
Digital Coin Price predicts the price of Cardano (ADA) to reach $2.05 by the end of 2021, $2.54 in 2022, $2.84 in 2023, $3.46 in 2024 and $4.09 in 2025.
Alex Paulson of Crypto-Rating forecasts ADA to reach $6 at the year’s end of 2025.
If all the developers focus on the map of Cardano’s project, Cardano will be trading at a price of $26.32 at the end of 2021, $50 per coin at the end of 2022, go through a bearish situation as a result of huge sell-offs by investors which will see the price drop to $23.81 in 2023. These are the sentiments of Mrvyasidea.com.
The Economy Forecast Agency, also known as Long Forecast, is not so bullish about the future of Cardano. It sees Cardano trade at $1.54 in 2021, $1.11 in 2022, go through a bearish season which has been predicted by several experts in 2023 to close at $0.70 and increase slightly to $0.84 to end 2024.
Tom Tragett of Libertex.com believes Cardano (ADA) will trade at a price of $1.32 in 2023 and cross the $2 price milestone, settling at $2.35 at the end of 2025.
Cardano Price Prediction 2030
By 2030, Cardano (ADA) will reach the peak of the bullish cycle and hit the $10 mark, is the price forecast of Alex Paulson of Crypto-Rating.com. According to Coin Price Forecast, Cardano (ADA) will have a price of $162.07 by the end of the year, 2030.
Read More: Cardano Price Prediction Forecast
The Bottom Line: Should You Buy Cardano (ADA)?
According to predictions, Cardano ADA is worth buying. Most Cardano price forecasts suggest that the crypto asset can expect to see significant growth over the coming years. Leading analysts vary wildly on their forecasts - but if even the most conservative predictions pan out, anyone who chooses to buy Cardano could see decent returns.
Cardano has a great future and can join the race of blockchains which aims to take the current web 2.0 to web 3.0.
In the last week of March 2021, founder Charles Hoskinson made it known that several developers have approached Cardano with Non-fungible token (NFT) creation proposals which are still under consideration which will see the developers port their creations to the Cardano Network.
With more partnerships being forged in developing economies, Cardano will have a first-mover advantage when those countries decide to resort to the creation of central bank digital currency (CBDC).
Ultimately, most platforms predict steady growth for Cardano and as such it represents one of the more reliable investments in what is a very unpredictable market. Cardano may well prove to be an excellent investment over both the short term and long term.
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