Cardano is a blockchain-enabled platform for innovators, visionaries and changemakers, equipped with the tools required to bring about disruption in the world of crypto. It is the biggest blockchain to successfully incorporate a proof-of-stake consensus mechanism, which is more energy efficient compared to the proof-of-work algorithm used by Bitcoin. ADA, the native token of Cardano, is currently ranked fourth among cryptocurrencies. In this article, we track the journey of Cardano and the promise it holds for the future.
While the adoption of blockchain technology is yet to become truly mainstream, developers have already moved from improving first-generation blockchains to creating second and third-generation ones. Ethereum, the popular second-generation blockchain, was initially created to solve some scalability issues faced by Bitcoin, a first-generation blockchain. In recent past, third generation of blockchains, which are looking to improve upon Ethereum, have emerged.
Cardano is a leading third generation blockchain created by one of the founders of Ethereum, Charles Hoskinson. Cardano is the first blockchain platform to be founded on peer-reviewed research and developed by academics & experts in the field through evidence-based methods. Launched in 2017, Cardano aims to help build a society that is fair, secure and transparent through the redistribution of power to individuals.
Compared to Ethereum’s 15 transactions per second (TPS) capability, Cardano is faster with the ability to handle more than 250 TPS. Cardano implemented DeFi protocols in September this year along with the ability to support smart contracts.
ADA, Cardano’s native token, can be used by users to support transactions on the blockchain as well as to transfer value to other users. ADA, has a maximum supply of 45 billion, out of which more than 33 billion are in circulation today. It currently ranks among the top 5 cryptocurrencies in the world with a price of $2.15 per token and more than $70 billion market capitalization. ADA has a popular staking program where users can earn interests on deposits.
ADA started 2021 with a price tag of less than $0.2 per token and hit an all-time high of $3.10 in September, which is more than a 15x growth in nine months.
Source: TradingView, Binance
Since its smart contract launch in early September, ADA has struggled to break through a resistance trendline it has traded under. A steady decline has sent it to the $2 range, where it has found support at its 100-day moving average and the .5 fibonacci retracement. Further downtrend may see it find strong support at the $1.8 range – at the confluence of its .618 retracement, .66 retracement and its 200-day moving average.
At $1.8, ADA is a strong buy for investors looking to take long positions given its potential to hit $10 in the next one year as Bitcoin puts in higher all-time-highs.
Post its smart contract launch, many companies have started building products to support the blockchain.
Source: Cardano
The Cardano ecosystem is expected to grow with multiple products being available to the public in the upcoming weeks. These include decentralized exchanges, smart DeFi layers, NFT marketplaces, swaps and others. As these products hit the market, the demand for ADA will grow. By December, ADA is expected to reclaim its $3 mark and enter price discovery mode.
Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.