Buying a cryptocurrency while it is still undervalued and in its early stages has proved to be one of the best cryptocurrency strategies. Those that purchased Bitcoin while it was still worth less than $10 have first-hand experience that if they waited and sold above $10,000 they would turn a very healthy profit. Interestingly, anyone who bought Bitcoin at $100 and sold at its 2021 peak would still be deep in the money. But can Cardano ADA deliver such strong gains?
ADA is the native cryptocurrency on the Cardano blockchain and is considered one of the best blockchains in existence because it leverages the scientific method where every development on the network is peer-reviewed by scientists. This approach introduces a higher level of legitimacy to the blockchain, making it more appealing to investors looking for lower-risk opportunities.
The Cardano blockchain was built with a heavy focus on support for decentralized applications (DApps). There is a lot of demand for Dapps because they cannot be controlled by a central party, thus enforcing the concept of immutability. The demand for DApps has lately been on the rise as DeFi continues to grow at an exponential rate. It is one of the reasons why the Ethereum network has been experiencing a lot of congestion and high fees, making Cardano more appealing to developers.
The demand for blockchains that offer smart contract support will only continue to grow in the next few years, which means the Cardano blockchain will likely have a wider user base. ADA enables utility on Cardano, and the higher demand for the network, the more it will be in demand, thus its price has huge growth potential.
ADA is currently worth $1.34 per coin and is currently down by 0.51% in the last 24 hours and 4.59% in the last 7 days. It currently has a market cap of $42.8 billion and there are 31.9 billion ADA in circulation.
Source- Binance
ADA peaked at $2.47 in May during the latest major crypto bull run. Its current low price makes it very accessible but that might not be the case in the future if it attains a higher price tag. Setting realistic expectations is important as far as its potential is involved. It would take a lot for ADA to reach $1,000 or even $500. It would be worth $7.00 if it were to match ETH’s $245 billion market cap assuming its current circulating supply remains unchanged. It is unlikely that it will match Bitcoin’s market cap at least not in the next few years but if it did, its price would possibly jump to $19.00.
Cardano is particularly focused on attracting organizations and governments. Its blockchain has been integrated into the Ethiopian education system courtesy of a partnership with the country’s government and has also secured a partnership with Tanzania to facilitate access to digital social and financial services.
Such partnerships have already put Cardano on the map and more collaborations are expected to take place to facilitate access to digital financial services. This is an essential area of growth not only for the company but also for the people benefiting from its offerings. It is a focus that can yield more growth for ADA as it becomes more widely adopted, potentially allowing the cryptocurrency to boost its market cap and thus its price.
The recent introduction of smart contracts into the Cardano blockchain is another major catalyst for growth. Smart contracts are essential to many developers looking to create DApps, which means the Cardano blockchain is now more attractive than ever before. It might be the catalyst needed to boost its network adoption which will undoubtedly increase in the next few years.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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