Even though Cardano (ADA-USD) has been one of the top cryptocurrencies over the past couple of years, ADA has been a sluggish mover despite having incredible use cases.
Cardano has made sensational progress with its development roadmap of late and introduced robust new features on its platform. It looks poised for a bull run this year.
Cardano is one of the most technically impressive blockchain networks designed to host autonomous and decentralized applications.
Its development team follows an academic approach to its development and design, capturing the imagination of the crypto industry. As a result, Cardano’s been one of the most popular cryptocurrencies, with wallets of its native currency surpassing three million recently.
The developers on its network have doubled from last year. With amazing tokenomics, a simple staking model and a commitment to innovation, ADA is arguably the best risk-reward offering in the crypto sector.
Transaction speeds have been a key focus for blockchain networks. Cardano has remarkable throughput of handling 250 transactions per second (TPS), and its Hydra update aims to take things up a notch or two. The Hydra scaling solution uses off-chain transactions or ledgers that effectively run parallel to the primary network.
The scaling solution processes transactions on the off-chain ledgers before settling them on the main one, which significantly increases transaction speeds and lowers the fees. The platform could handle over one million TPS. Each off-chain ledger can potentially handle close to 1,000 TPS.
Another growth catalyst for Cardano is the company’s differentiated approach towards improving the quality of its platform. It has laid down its stages of development which include multiple milestones.
It is has reached the last two stages out of a total of five. The end goal is for the platform to be an autonomous system. On top of that, its peer-review system adds plenty of value to its network.
Before any update goes live, it needs to go through an extensive peer review and approval before its implementation. The process ensures security and fewer technical hiccups on the network.
Getting a Move On
Perhaps the biggest criticism against Cardano is its inability to bounce back from its downtrend last year. The crypto has shed over 60% of its value after its Alonzo hard fork.
Investors were hoping to immediately release decentralized applications (dapp) after smart contract capabilities became part of the platform. Investors might not have to wait too long for dapps to be released on the platform, though.
Cardano’s founder Charles Hoskinson recently announced that as many as 127 projects were in development and will be released during the first half of this year.
Despite being around for several years, it appears Cardano is just warming up. Smart contracts became part of the platform only recently, while developers continue developing and scaling up the platform.
With the added utility, ADA could break out.
Cardano’s foray into Africa also is a development worth mentioning. Its developers are targeting Africa, where over one billion people are unbanked. Cardano is looking to tap into the market with its compelling use-cases, such as
Bottom Line on ADA
Cardano will be seeing the first wave of dapp deployments on its platform. That could potentially kickstart a recovery for ADA, which has been rut since last September.
Crypto has one of the best bull-cases in the sector and is in pole position to soar to new heights. Nevertheless, the market is highly risky, and it’s best to avoid investing more than what you can afford to lose. If there’s one crypto player you should place your bets on, though, it’s Cardano.
On the date of publication, Muslim 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.