Still, some bears might suggest Cardano has gone as far as it can this year. But it doesn’t mean you should sell your ADA. If anything, it means that Cardano is at an important point in its growth story. If they pick up momentum, then we could see a serious increase in market value for the currency, which would make early investors extremely happy with their decision to buy in before prices went through the roof.
Cardano is a project to build an electronic currency that’s decentralized, secure and scalable. In stages one through five, they release products throughout all aspects from Foundation to Smart Contracts which their blockchain will power.
Considering all of these factors, Cardano will continue to do well. The altcoin should be treated differently than meme coins, which are trading simply on momentum. Looking ahead, the catalysts are there for a sustained bull run.
Cardano Use Cases Set It Apart
The Cardano team wants a new form of money that can execute complex operations and bring stability into under-serviced financial markets while also providing options when traditional systems fail or do not work properly anymore due to unforeseen circumstances.
Cardano is a leader in the finance industry, and it uses its decentralized system to facilitate banking globally. It does so by facilitating smart contracts. These are self-executing pieces of code with terms written within them.
Cardano is a secure, private blockchain that can be used in any industry where users store personal or sensitive information. For instance, documents on the blockchain allow someone to open an account for themselves with just a click.
Transaction speed is also excellent, with the blockchain processing about 250 per second. It compares favorably with Ethereum, which completes only 30 in that amount of time.
With its sustainable energy use and low power consumption, Cardano is likely to please investors. It uses six gigawatts of green electricity per year, translating into about two nuclear plants. Meanwhile, according to a report from Cambridge researchers, Bitcoin uses “more electricity than Argentina.”
What Does the Future of Cardano?
The Cardano cryptocurrency reached an all-time high of $3.10 on Sep. 2, up 26% from its previous-all time high of $2.46 during the broader crypto rally last month. The price of Cardano shot up as developers announced that the testnet supports smart contracts. And it launched the Alonzo hard fork.
The future of Cardano seems very bright. The coin’s forecast from Wallet Investor predicted that by 2021, prices could touch $2.483 on average. The cryptocurrency will climb up to an astounding $13.526 in five years’ time, according to the company’s estimates.
The ADA coin price prediction from DigitalCoin projected that the price could average $3.63 in 2022, up from $2.93 in 2021, and climb to an average of $8.79 by 2025 by 2028.
If you are looking to invest in the cryptocurrency market, make sure your purchase reflects your risk appetite. While some coins may seem like a good idea at first glance and have an attractive price tag—even if there has been little or no news surrounding them recently—do thorough research before taking the dip.
Outlook Is Positive
The Cardano project has taken an interesting approach to cryptocurrency by adopting a gradual strategy. This means they are trying to create not only hype but also substance, which will be challenging for them in this day and age of trading digital coins with abandon, because it seems like most people want something that is going straight up in value as soon as possible without any strings attached or risks involved whatsoever (which doesn’t exist).
Cardano’s slow and steady approach, with a focus on increasing functionality, will win out in the end.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.