Key Points
- Every time Cardano coin has hit a local low, it has bounced back with as much vigor and with more or less the same amount.
- William Noble, chief technical analyst of Token Metrics, claims that Cardano coin has a chance of hitting $5.50 by the end of 2022.
- Cardano’s blockchain is fast. All industries are sooner or later get on to blockchain technology. Finance, art, music, and social media
Several factors determine the growth of any cryptocurrency.
Top among these factors are; the crypto currency’s use cases, the rate at which it is adapted, the general market's performance, and the team behind the currency among others.
Cardano, like many other cryptocurrencies in this market, is also competing to have as many people as possible accept and use it and grow its value.
When investing, you expect that the digital currency or currencies you invest in are going to grow in value and make you some money.
It is usually not an easy decision since there are so many cryptocurrencies, but you can always check reviews, past performance, and other metrics to determine what to invest in.
Going by this, is Cardano a good investment option? Is it going to hit the projected high returns by 2025?
This article takes a deep look at what Cardano is, its journey, what others think about it, and if Cardano has any chances of reaching a trillion-dollar market cap by 2025.
What Is Cardano?
Cardano is more or less like its predecessor Bitcoin. It is an open-source blockchain decentralized platform on which peers can transact.
However, unlike Bitcoin that utilizes proof-of-work protocol, Cardano uses proof-of-stake to verify and confirm transactions on its platform. This coin or digital currency was developed in 2016 by Charles Hoskinson. Hoskinson is also the co-founder of Ethereum. Cardano is the largest digital coin to use the proof-of-stake blockchain mechanism.
Cardano’s native currency is called ADA. It is named after Ada Lovelace an English mathematician that is credited with contributing to the code that assisted Charles Babbage to develop the first general-purpose computer.
Cardano prides itself as the largest proof-of-stake cryptocurrency. One token of ADA is now retailing at $1.02.
The coin’s maximum supply is 45 billion, but currently has a circulating supply of 33 billion. With this circulating supply, it has a market capitalization of $48.6 billion, making it the largest of its kind, and the sixth-largest in general after Bitcoin and Ethereum.
Whether or not Cardano coin will become a trillion-dollar cryptocurrency is a matter of previous metrics and time. Looking at the history of this coin, ADA's all-time low was recorded on October 1, 2017.
The coin's price as of that date was $0.01735. The coin has seen a gradual rise since then recording an all-time high of $3.10 on September 2, 2021.
This change was a massive 17,767%. If you had invested $1000 then, you would now have $177,670, a life-changing amount.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Will Cardano Reach a Trillion-Dollar Cryptocurrency?
Currently, the total market capitalization of the entire cryptocurrency industry is just above $2 trillion. Bitcoin, the leading digital currency is currently at $707 billion, almost clinching the $1 trillion mark.
Cardano while having a good run for the same mark has still a long way to go, but since this currency is one of the few tracing its own path rather than following in Bitcoin’s footsteps, it could also hit that mark by the year 2025.
That is about three and a half years from now.
Currently, it is yet to hit the $100 billion mark in terms of market capitalization but could do so in a matter of a few months.
Does Cardano coin have what it takes to reach a trillion-dollar market cap by 2025?
The cryptocurrency market recently experienced a bear market, where the price of all digital currencies including Bitcoin got slashed significantly. The market is, however, resuming its bull run, with analysts describing the next coming cycle as a super bull cycle. Cardano could benefit from this super bull cycle considering its properties.
Don't Miss: Cardano Price Prediction Forecast
Cardano's practical uses will help to become a trillion-dollar market cap by 2025
Cardano coin is yet to gain widespread popularity, but analysts regard it as one of the best coins to hold at the moment. With one of the fastest blockchains utilizing minimal energy hence being friendly to the environment, Cardano is gradually getting recognition from major institutions.
In 2019, footwear companies NewBalance and Athletic Wear got into an agreement with this project where the companies would utilize its blockchain to identify fake sneakers in the market.
The Ethiopian ministry of education has also since taken up the use of this blockchain to enhance the quality of education in the country. They plan to have student records on the blockchain for better reference as they pursue their education to the highest levels.
Furthermore, the pharmaceutical industry is looking forward to utilizing this technology to detect counterfeit drugs and prevent them from getting into the market.
Farmers are also coming on board to use the blockchain for tracking their supplies, while the banking and finance industries in Africa aims to use it to establish individuals' creditworthiness as they make credit accessible to small-scale business people to enhance economic growth.
With these use cases, and with the future planned collaborations and developments, there is a very high likelihood that the value of this coin will go up, increasing its market capitalization to a trillion dollar by 2025.
A few analysts project that the price of one ADA token could hit $5 in the first few months of 2022, and could soar as high as $20 or more by the year 2025.
Cardano still has some upgrades it is planning in the next few years to improve its protocol. If all of these upgrades become a success, and they have a very high likelihood of succeeding, then the value of this currency in terms of its market cap could rise significantly. These upgrades could also see the project get into partnerships with more countries, especially if it becomes successful in Ethiopia’s ministry of education.
If you are thinking of buying in Cardano, then you should do so, but only after you have done your due diligence.
Cardano, being capable of implementing smart contracts and at a higher speed than Ethereum, seems to have a great future.
Another advantage is its current price of less than $3. This means that you could still buy a substantial amount of tokens. So, make your move after you have done your due diligence.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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