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ADA-USD: Cardano Momentum Shows No Signs of Slowing Down

Cardano’s (CCC:ADA-USD) full decentralization will help it take on rivals Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) and fuel its demand and price.

The Cardano logo and description on a smartphone.
Source: Grey82 / Shutterstock.com

Becoming fully decentralized means its parent company has handed control of the blockchain over to the community, an event that should attract more investors, ultimately leading to a sharp appreciation in price.

Cardano has also joined Coinbase Global (NASDAQ:COIN), a fully regulated and licensed cryptocurrency exchange. Coinbase has stringent rules regarding which coin can list on its platform, so this is a pretty big deal.

However, it is important to note that ADA had several advantages that set it apart from other altcoins even before these two announcements. It has a settlement layer and a computational layer that allow for unlimited scalability and quick transactions.

Anyone can update the platform without interfering with payments and transactions. Cardano’s proof of stake protocol also ensures mathematically proven safety and faster transaction speed.

Hence, it was always an attractive proposition. But the general enthusiasm surrounding the crypto space, plus certain recent developments, have pushed Cardano’s price up by 306% in the last three months, compared to 80.8% increase in Bitcoin’s value.

To sum up, ADA is exactly the right option for people that want to diversify their portfolios.

ADA Can Easily Top All-Time High

Cardano is a blockchain-based cryptocurrency network and open-source project that its boosters believe fulfils two purposes. One, it wants to act as a traditional asset-based cryptocurrency. And two, it wants to function as a smart contract platform.

Cardano is expected to have a fully fleshed out blockchain ecosystem similar in nature to Ethereum, allowing for the execution of a wide variety of transactions.

However, after reaching an all-time high of $1.48, it has struggled. The recent crash is mostly because of the relationship between altcoins and Bitcoin. Since it’s a bellwether of the asset class, when Bitcoin falls, so do the other coins in the space.

ADA prices are oscillating between $1.15 and $1.23, as I write this. Bulls are trying their level best to retest the upper level of the range. The good thing is that the 10-week simple moving average (SMA) is supporting ADA.

However, if the price turns treads below the 61.8% Fibonacci retracement level of $1.12, sellers have $1.03 and $0.97 in their sights.

But I am bullish because of positive catalysts.

Cardano’s recent decentralization is a major step toward challenging the big guns in the sector. Ethereum, in particular, has a lot to fear when it comes to ADA. Apart from using it as a currency, it is also utilized as a blockchain to build smart contracts, protocols, and decentralized applications.

Why Invest In ADA?

Development of the Cardano platform began in 2015, and it formally launched in 2017. Charles Hoskinson, the altcoin’s founder, previously served as a co-founder of Ethereum.

After leaving Ethereum, he established a blockchain engineering company known as IOHK, which focuses on Cardano’s development. Considering the co-founders of Ethereum, Charles Hoskinson and Jeremy Wood, you begin to appreciate why Cardano gets so much attention. It is also peer-reviewed to ensure there are no weaknesses in the protocol.

Furthermore, several academics work for IOHK and write papers on how the platform can improve.

Cardano is a third-generation blockchain. Hence, it is regarded as more reliable than other cryptocurrencies as ADA keeps overcoming challenges that other platforms have encountered. The platform’s proof of stake protocol also gives it mathematically proven safety.

The most impressive aspect of Cardano is that it provides the world’s unbanked with essential financial services. This is particularly important for emerging economies.

According to the World Bank, over 1.7 billion people worldwide do not have access to financial services, giving ADA a huge market to tap.

Bottom Line on Cardano

Cardano is a very good investment. It has a decentralized nature and layered architecture and an upper limit of 45 billion coins to protect it against inflation.

Yes, there are certainly some issues on the platform to dislike. For instance, having an open voting system means less tech-savvy token holders may vote for an unreasonable decision on the platform.

However, considering a wide range of factors and potential risks, ADA is a good altcoin to diversify your portfolio.

On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.

Article printed from InvestorPlace Media, https://investorplace.com/2021/04/ada-usd-cardano-momentum-shows-no-signs-of-slowing-down/.

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