Why We Think Cardano Could Be The Next Big Thing
Cardano (ADA) offers lots of value potential right now. It is up by over 740.88% this year and has made new highs of over $3. While Cardano may seem like it is hugely overvalued at the current price, it still has a lot of potential going into the future.
For context, here are a few reasons why Cardano is heading in the right directions and could be the next big thing in the crypto space.
Security Of The Cardano Blockchain
The crypto ecosystem has become a huge target for hackers in recent times. This is a big deal because once a project gets compromised, credibility is usually lost forever. That’s why most of the projects that have been successfully hacked never recover.
This is part of the reason why a lot of the institutional investors have for the most part been flocking to Bitcoin and Ethereum. At this point, the amount of hash rate needed to compromise Bitcoin is simply unachievable.
Similarly, Ethereum’s price is so high that investing the amount needed to take over the network is not economically viable at this point.
Cardano, while a relatively new project compared to either Bitcoin or Ethereum, is one of the most secure projects in the market today. Its proof-of-stake algorithm has been mathematically proven to be resistant to a 51% attack.
Besides, now that the price of ADA is on the rise, it would be more expensive than ever before for an attacker to do a successful attack on the Cardano blockchain. This puts Cardano amongst an elite group of cryptos that have an extremely high degree of security.
This is a factor that will play well into adoption long term. By extension, it is a factor that could see the value of this blockchain rally going into the future.
The Alonzo Upgrade
The primary reason behind Cardano’s rally over the past month is news of the upcoming hard fork named Alonzo. Through this fork, Cardano will introduce smart contracts.
This is a big deal because it will see Cardano start competing with Ethereum in the DeFi space. Experts expect Cardano to be huge in this space mainly because it is much more efficient than Ethereum.
For starters, Cardano is much more scalable than Ethereum. Thanks to its Ouroboros Proof-of-Stake algorithm, Cardano has the capacity to handle over 20 times more transactions per second than Ethereum on-chain.
While Ethereum is in the process of shifting to Proof-of-Stake, Cardano will still be way ahead in terms of scalability. That’s because of its layer-2 solutions such as hydra.
Through these hydras, Cardano has the capacity to handle over a million transactions per second. This theoretically gives it the same scaling capacity as most centralized financial systems today.
This is a factor that will play into Cardano’s favour going into the future, and the market is very keen on it if ADA’s price action is anything to go by. The best part is that Cardano is enabling smart contracts at a time when the DeFi market is on an explosive growth path.
It’s a factor that could see Cardano take a significant share of the DeFi market. If the growth of Ethereum in the last few years is anything to go by, then Cardano holds very good prospects for investors going into the future. It has the potential to test Ethereum-level prices in a very short time.
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Cardano Staking Is Very Attractive To Investors
Cardano staking offers some of the highest rewards to investors among Proof-of-Stake coins.
At the same time, Cardano has no limit to the number of coins that an investor can stake. One can even stake as low as one ADA.
On top of that, it is very easy to do, even for novice investors. That’s because, one can easily stake through exchanges, which is a pretty straightforward process to follow.
This is a factor likely to play into Cardano’s favour especially now that its price is skyrocketing.
There Is A Rush Into Next-Generation Platform Blockchains
The platform blockchain market is in competition right now, as DeFi takes shape as the next big evolution in finance.
As the competition heats up, three blockchains have come up as the biggest contenders to drive the future of this market. These are Ethereum (ETH), Cardano (ADA), and Solana (SOL). Ethereum is in the middle of an upgrade that will see it become more scalable and able to compete in this space.
On its part, Solana has proven to be quite scalable and has done of series rounds of funding to make it even better.
Cardano is in the process of enabling smart contracts, a factor that will also see it become a key player in the fast-growing DeFi market going into the future.
The bigger picture is not the competition between these three, but with centralized finance. With the high level of scalability that these blockchains offer, a lot of innovative DeFi projects are likely to start building on top of them.
This presents a good future for them if the price action of the last few weeks is anything to go by.
For Cardano, a surge in capital inflows from CEFI to DeFi could see it test double-digit prices in the near future.
The Entire Crypto Market Is Bullish
The crypto market is in a strong recovery at the moment. From lows about $1.3 trillion, it is now at $2.3 trillion. The interesting part is that Bitcoin (BTC), which for the most part drives the crypto market is yet to retest its all-time highs.
If history is anything to go by, once Bitcoin crosses its all-time highs, it always makes new, even higher ones. In the process, it pulls the broader crypto market with it.
Considering that Cardano is now trading at record highs, the next market-wide bull run could easily see it test prices above $10. This makes it a top cryptocurrency to keep an eye on at current prices.
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