Why Cardano Is Going To Explode In 2023

DeFi and Cardano’s technical capabilities likely to drive growth in 2023

Last Updated December 20th 2022

12 Min Read

Will Cardano break its record of its all-time high in 2023? Find out why.

The crypto market has created tremendous wealth in 2021. Several cryptocurrencies have had their massive rally and all-time highs this year, opening up numerous opportunities for investors. One such digital currency that has risen to prominence recently is Cardano. The ADA token has had a colossal rise in its price since the beginning of 2021 and closed the year higher by 274.24%. Most analysts believe that Cardano could give even higher gains in 2023.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The crypto aims to be a sustainable and scalable cryptocurrency. Let’s see why enthusiasts predict that Cardano is going to explode in 2023.

Key Takeaways

Cardano is becoming one of the most popular cryptocurrencies
According to Charles Hokinson’s Cardano is working on a bridge between Bitcoin and Ethereum
Cardano currently has a market capitalization of $41 billion. That’s tiny compared to its competitor Ethereum, which has a market capitalization of $409 billion
Partnership agreements could drive the price of Cardano to skyrocket in 2023 and beyond

Looking At 2023: Is Cardano Price Set For A Massive Rally In 2023?

Cardano is gradually becoming one of the most popular cryptocurrencies in the market.

Cardano has come a long way since 2017, when it was just a whitepaper. Today, Cardano is one of the top 10 cryptocurrencies by market capitalization, with a market cap of $41 billion.

So, what is Cardano all about? Cardano is a cutting-edge blockchain platform that puts together new technologies to give users unmatched levels of security and sustainability. Cardano uses peer-reviewed research and has built one of the best Proof-of-Stake algorithms in the market.

Cardano has become a leading network for crypto enthusiasts with its latest upgrades and partnerships. ADA is also one of the fastest-growing cryptocurrencies today. The token has managed to reflect positive momentum since the beginning of the year. So let’s dive into our main point of discussion - is Cardano a millionaire-maker investment for 2023?

#1: ADA’s Tremendous Rally

Cardano’s price has revealed a rather optimistic outlook since the beginning of this year. The network’s success has also been reflected in the astronomical 2000% increase in ADA coin price over the past year. The token is also traded on several exchanges by millions of users worldwide. Therefore, ADA has positioned itself as one of the top potential cryptocurrencies in the market today, gaining significant traction from both retail and institutional investors.

Moreover, ADA is gradually building its utility in the real world. The demand for Cardano is also rising significantly through DeFi apps, smart contracts, and significant partnerships.

#2: Unique Features Of Cardano Blockchain

A key reason behind Cardano’s growth and success is its dedicated team. Rather than just rushing in to implement novel features, the team bases each of its decisions on academic research. The project is divided into five key stages that keenly address its foundation, decentralization, smart contracts, scalability, and governance.

One of the top features of Cardano that distinguishes it from its competitors is scalability and speed. The whole mechanism of the blockchain is highly conceptualized and ensures lightning-fast speed of transactions on the network.

Moreover, in 2020 Cardano completed its Shelley update, which made its blockchain 50 to 100 times more decentralized than any other larger blockchain. This also paved the way for hundreds of assets to run on its network efficiently. Smart contract functionality was added to the blockchain in the project's third phase in September 2021.

What other cryptos are trying to achieve, Cardano has already achieved through its Ouroboros Proof-of-Stake algorithm. The Ouroboros protocol is a highly sophisticated form of proof-of-stake. It spreads out network control across various pools to guarantee network stability and decentralization.

This makes Cardano one of the best platforms for building Dapps. With the adoption of Web 3.0 applications on a growth trajectory, Cardano is uniquely positioned for growth in 2023.

With more updates and enhancements to its network in the future, Cardano would likely explode in 2023 and beyond.

#3 Cardano Smart Contracts Are Now A Thing

While Ethereum dominates the smart contracts space, Cardano could take a sizeable portion of the market in 2023 for two reasons.

Firstly, Ethereum remains relatively expensive for launching smart contracts despite recent upgrades. This means alternative launch platforms such as Cardano (ADA), Solana (SOL), and Avalanche (AVAX) will keep growing in demand in 2023.

Secondly, there is the fact most Ethereum alternatives have flaws that make them a risk for developers. For instance, Solana prides itself as one of the fastest platform blockchains in the market today. However, this comes at the expense of decentralization, as shown in two attacks on the network in 2020.

A Grayscale report on Solana took note of the risks that Solana faces. The report stated that the Solana consensus mechanism is new and may have flaws in its cryptography. This makes it susceptible to hacking attacks.

Cardano is one of the few Ethereum competitors that do not have such issues. This has a lot to do with that, everything in Cardano is researched and scientifically reviewed before being deployed.

Thanks to this scientific approach, Cardano is designed so that it can operate efficiently without compromising on the three key pillars of blockchain: security, scalability, and decentralization.

As such issues become clearer to many developers and investors, Cardano could see an increase in demand all through 2023.

#4: Cardano’s Sustainable Blockchain

Yet another exciting feature of the Cardano cryptocurrency is its eco-friendly Proof-of-Stake mechanism. Unlike Bitcoin and other Proof-of-Work miners, PoS allows investors to stake their tokens to validate the blockchain, consuming very little energy. Since it requires much less computing power than the traditional mechanism, ADA has gained tremendous interest from environmental-conscious investors across the globe. Moreover, the fact that Cardano was one of the early adopters in this validation model has pushed the market up rather quickly.

#5: Why Cardano Is Going To Explode In 2023?: Expert Predictions

CoinSwitch

“Since its market launch in September 2017, Cardano Forecast has provided a return on investment of almost 1500%. Cardano’s price prediction suggests that the Cardano price is up for a long-term 75.740523% in the ADA price value with a 5-year investment. This means that in the year 2025, the Cardano price is forecasted to stand at $3.”

Wallet Investor

“According to walletinvestor.com’s price predictions, a long-term increase is expected. The average price forecast for 2026 is $9.84. With a 5-year investment, the revenue is expected to be around +864.71%.”

Don't Miss: Cardano Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Factors That Drive Cardano To Explode This Year

Several factors drive the price of ADA to skyrocket in 2023 and beyond.

Significant Partnerships

Partnership With Dish Network

Cardano signed a partnership agreement with the Dish Network in September 2021, pushing its value even higher in the market. ADA intends to offer Dish over 8 million digital identities to its customers. Since the identities become immutable, the network will ensure the complete safety and privacy of those identities on the Cardano blockchain platform.

The partnership is an ideal example of how blockchain platforms are going to revolutionize real-world software applications. As a result, the collaboration will eventually push the value of ADA higher over the long run.

Partnership With Chainlink

Cardano has entered into a strategic partnership with Chainlink Labs to integrate Chainlink’s leading decentralized oracle network as Cardano’s preferred oracle solution. The parent company of Cardano, Input Output, also claimed that it would help Cardano developers build smart contracts for secure decentralized finance (DeFi) applications.

In an official statement, IOHK Founder Charles Hoskinson said, “Not only will integrating Chainlink price feeds reduce the go-to-market time for Cardano developers, but it will establish a secure foundation for Cardano’s DeFi ecosystem, helping make Cardano more trusted by users around the world.”

Cardano Latest Updates

The Alonzo Purple Upgrade

The Cardano Alonzo Purple upgrade was initiated in 2021 and introduced a massive change in the form of smart contracts. The long-awaited update has opened doors for non-fungible tokens (NFT) and revolutionized the chain massively, attracting millions of users and investors worldwide. Apart from that, ADA witnessed 100 million active wallets back in May. The number of wallets has doubled to 200 million in the last six months.

The Launch Of Hydra

All Cardano enthusiasts are eagerly waiting for phase four of the crypto - the implementation of the Ouroboros Hydra. It is an upgraded version of the latest consensus protocol. With the launch of Hydra, multiple side chains will be added to the main blockchain, efficiently distributing the network load. Once the update is initiated, the network can handle 1000 transactions per second. Moreover, with 1000 side chains, Cardano could theoretically support 1 million TPS in the future.

Check Out: 11 Reasons Why You Should Invest in Cardano ADA Today

Major Upgrades Coming Up In 2023

In 2023, investors can expect even bigger things if Charles Hokinson’s word is anything to go by. According to him, Cardano is working on a bridge between Bitcoin and Ethereum smart contracts in what he calls eUTXO.

Cardano’s eUTXO will remove unnecessary features from the EVM and create a basic contract model that works great for DeFi applications. This way, they hope to offer an easy-to-use smart contract environment with minimal complexity or risk of failure.

This factor could drive up Cardano adoption in DeFi, and by extension, ADA’s value in 2023.

Why Cardano Is Going To Explode In 2023: The Bottom-line

ADA could be one of the top sustainable cryptocurrencies in the market for investors.

Thanks to its versatility in providing real, innovative, and disruptive change to the finance, healthcare, and law sectors, Cardano has emerged as one of the top cryptocurrencies to invest in today. Moreover, the crypto’s academically adept developer team is executing a solid and smart growth strategy and continuously enhancing the network’s efficiency.

With its strong focus and promise on scalability, the platform would become more popular with dApps, builders, and DeFi investors a few years from now. Eventually, increased adoption of the Cardano blockchain network would significantly push the demand for the underlying ADA token, skyrocketing its price to new highs.

The introduction of smart contracts was one of the factors that significantly added to Cardano’s intrinsic value. This year, Cardano looks set to further entrench its position as one of the best platforms for Dapps. With the focus now on eUTXO, the chances of Cardano achieving its goals are even higher.

Besides, even from its market cap, Cardano has a lot of room for growth. Cardano currently has a market capitalization of $41 billion. That’s tiny compared to its competitor Ethereum, which has a market capitalization of $409 billion. With all the upgrades that Cardano has coming up and DeFi is on a growth trajectory, Cardano would likely explode in 2023 and beyond. The crypto has thus left a global footprint with its strong strategies, making it stand out from its peers. For those looking for an investment to generate massive returns over the long run, Cardano is a strong bet.