Cardano (CRYPTO:ADA) is a cryptocurrency that quickly gained momentum after its launch on September 27, 2017. As a result, Cardano is among the ten most valuable cryptocurrencies. Actually it’s the third. The prospects of investing in Cardano were assessed by our expert. We’ve tried to build prediction of the Cardano (ADA) rate.
Cardano (ADA) value performance is currently inferior to Bitcoin and Ethereum (ETH), occupying the third position in the top cryptocurrencies list. Bitcoin has a reached a capitalization level of $927 billion, while Ethereum has about $399 billion. Cardano’s market capitalization is a mere $70 billion. Although this is far from defeating the king of cryptocurrencies (BTC), the steady and quiet growth of ADA can become a threat to the position of Ethereum, some experts are convinced.
Cardano (ADA) rate predictions: pros and cons of the coin
There are some definitive Cardano opportunities. Those will probably allow the cryptocurrency to bypass Ethereum and become the second after bitcoin.
- Experts describe Cardano (ADA) as an environmentally friendly cryptocurrency. This is the third of the top six environmentally friendly cryptocurrencies, and Ethereum and Bitcoin are not on this list at all. Together, Ethereum and Bitcoin use 180 terawatt hours per year.
- Ethereum alone uses 20 to 25 terawatt hours per year. Cardano consumes only 6 gigawatt-hours per year. In other words, Ethereum uses much more energy than Cardano. It is quite natural that people will want to use a cryptocurrency like Cardano, which requires less energy. Either because of environmental reasons or because of the high associated costs.
Despite its low power consumption, Cardano processes far more transactions than Bitcoin and Ethereum combined. Bitcoin processes 5 transactions per second, and Ethereum processes 15 transactions per second. The Cardano account has 257 transactions per second.
On the other hand:
- Although Cardano is currently the third largest cryptocurrency, there has actually been a slow decline in value and market capitalization over the past three weeks;
- Other cryptocurrencies, such as Tether and Binance Coin, are very close to catching up with Cardano today and possibly taking its place;
- Ethereum will sooner or later switch to PoS and become as environmentally-friendly as other modern cryptos.
The decentralized blockchain platform with open source code and proof of ownership of Cardano was founded in 2015 by Input Output Hong Kong (IOHK) and Charles Hoskinson, also known as the co-founder of the Ethereum cryptocurrency and the Ethereum Classic and BitShares blockchain crypto platforms. It was named after the Italian mathematician, philosopher and physician Gerolamo Cardano. ADA is an internal Cardano cryptocurrency named after Ada Lovelace (Augusta Ada King Byron, Countess of Lovelace), an English female mathematician who (in popular belief and factually wrong!) described the scheme of the world’s first computing machine.
The early years, success and decline of ADA
In September 2017, the Cardano (ADA) project was launched in Japan. By February 2018, the cryptocurrency took the 5th place in the world by market capitalization (over $ 8 billion), which literally in a matter of weeks increased sharply from almost the original $700 million, attracting the attention of the entire blockchain community. However, for the entire subsequent period of 2018, the cost of Cardano fell, and by mid-December it reached the lowest point of $0.027 per token. However, in March 2019, when Bitcoin, along with all altcoins, fell in price, Cardano (ADA) was the only coin that showed some growth. According to the results of 2020 Cardano has demonstrated tremendous growth — more than 500 percent – ahead of all known world cryptocurrencies by this indicator. Since then, the popularity of the ADA token, as well as its value, have increased exponentially. According to Value the Markets and Write Gate, in March 2021, after the Coinbase cryptocurrency exchange listed Cardano (ADA) and after its appearance in the Bloomberg Terminal computer system, it grew by 16 percent, and over the past year showed an increase of a staggering 3557 percent, which allowed it to take the 4th position in the ranking of cryptocurrencies with the largest market capitalization.
Cardano (ADA) smart contracts: the great thing on the wait list
During August of the current 2021, the cryptocurrency steadily added more than 18 percent in value per week. For example, according to TradingView, by August 14, the price of ADA reached an intraday high of $2.2430. Cardano (ADA) was able to demonstrate ATH after the announcement of the date of planned changes in the source code of the blockchain ‘Alonzo Purple’. Support for smart contracts and the ability to create decentralized applications (dApps) will be added to the blockchain of the main Cardano network. According to Nigel Hemsley, head of delivery and products at IOHK, the project will be launched on September 12. As for today smart contracts are in the to-do list. The longer they will not became a real thing the longer the crypto will be under pressure.
Cardano (ADA) prediction: will Cardano overtake Ethereum?
If you look at the market capitalization and price, it is unlikely that ADA will overtake and become the “killer” of ETH. The gap between the market capitalization of ETH and ADA is about $330 billion, which is a lot. Cardano’s market capitalization is closer to the 100th cryptocurrency than to Ethereum. However, experts pay attention to the fact that forecasts in the field of cryptocurrencies are not always accurate, since this market is unpredictable. It is likely that Cardano will continue to make progress in the long term. With it in mind Cardano (ADA) prediction looks bleak in the middle term, and quite bright when all the bells and whistles will became operational. The problem is that who knows for sure what features will be implemented in competitors’ blockchain in the same time?