By 2025, Cardano will reach US$2.83 and will surpass the US$5 resistance level before 2029
Throughout 2021, Cardano’s price was on the uphill. The cryptocurrency brought many amazing movements and drove ADA to all-time highs throughout the year. But before 2021 ended, Cardano, just like many other digital tokens, went on a slump. However, cryptocurrency experts say that Cardano might have a different story to tell in 2022. With almost 50% spike potential in the bag, ADA is all set to prove its stance.
Cardano is often called the ‘Ethereum Killer’ for its potential to combat the top second cryptocurrency. To know about ADA from its core, we have to first learn its connections with Etheruem. One of the co-founders of ETH, Charles Hoskinson, is the creator of the Cardano network. Since he has much info about the internal mechanism of Etherum and he was also a part, to begin with, Charles implied all those technologies in the Cardano platform and made it a direct competitor of the front-running cryptocurrency. Similar to Ethereum, Cardano also has features to develop smart contracts, run decentralized applications, and promote non-fungible tokens (NFTs). Going a step forward, Charles made sure that ADA stands out from ETH on some grounds just like its transaction speed. Fortunately, with its amazing features, ADA has put itself at the front many times since its inception. Cardano’s price has gone up by 650% in 2021 alone. Besides, the platform has laid out a roadmap that will place the cryptocurrency in the front in the coming years.
How did Cardano Reach its Recent All-Time-High?
Cardano’s price hit an all-time high of US$3.10 in September when the company, InputOutput (IOHK) announced the launch of the smart contract. Following this, they also rolled out new features to add decentralized applications and decentralized finance use cases in Cardano. Besides, the staking mechanism in Cardano is also giving value to ADA tokens. Currently, over 70.85% of the total coins are locked. Therefore, the supply and demand add more value to the circulating virtual currencies.
Cardano is also extending its partnership among companies like verities and Rival to gain institutional investors and use the medium as a source for DApps and NFTs.
Where is ADA Headed?
At the time of writing, Cardano is traded for US$1.52 with a market capitalization of US$51.02 billion. The cryptocurrency has recorded a 10.80% 24-hour spike. Prior to this, Cardano’s price reached US$1.75 in the beginning of December. Although the price didn’t last long, it created a liquidity pool that is all set to gain value now.
However, ADA won’t go directly to reach new highs from here. There are chances that the digital token might slip and hit US$1.26, its psychological resistance level, and then hit new all-time highs. In the long run, Cardano is expected to record even impressive growth. Before 2027, experts predict that ADA will climb to seven times of what it is today. By 2025, the cryptocurrency will reach US$2.83 and will surpass the US$5 resistance level before 2029.
The New Plan for 2022
During a talk show on YouTube, Charles Hoskinson, the founder of Cardano, has revealed his plans for 2022. He mentioned that his goal for the second half of 2022 is to figure out how to pull all the pieces together to get an end-to-end microfinance transaction on Cardano. Besides, the founder is also planning to introduce a mechanism that will oversee all decentralized products in the platform.
Currently, the Cardano team is working on an enhancement program called ‘Cardano Improvement Proposals’, which is all set to roll out in 2022. Charles has also informed about the testnet rollout which will improve the network through its peer-to-peer frameworks.
Factors Driving Cardano’s Value
The Cardano platform was initially designed to address blockchain challenges. Standing by its promises, ADA has also all set to fulfill its long-term potential. Some of the factors driving its value are listed as follows.
- Recently, the block size of Cardano was increased from 8KB to 72KB. By doing so, the platform is ensuring that ADA can carry out more transactions.
- Cardano is storing portions of the protocol state on disk, providing more space for scalability.
- The platform has added input endorsers that will improve block propagation times and allow transactions to be separated into pre-constructed blocks.
- ADA also has an amazing feature called sidechain, which will separate blockchain connected to a main blockchain through a two-way mechanism.
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