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Cardano Ecosystem

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01/31/2022

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Cardano Price Prediction: Will ADA Soar to $10 in 2022?

The Cardano price has slumped to about $1 in the past few months. The coin has slumped by over 67% from its all-time high of about $3.17. As a result, its total market capitalization has declined from over $90...

Cardano Price Prediction: Will ADA Soar to $10 in 2022?

The Cardano price has slumped to about $1 in the past few months. The coin has slumped by over 67% from its all-time high of about $3.17. As a result, its total market capitalization has declined from over $90 billion in August to $34 billion. 

Similarly, its ranking among the biggest cryptocurrencies has dropped to 6. In this report, we will explain what Cardano is, why it has dropped sharply lately, and what to expect in the coming months.

What is Cardano and what does it do?

A common question among many cryptocurrency enthusiasts has been what is cardano and what does it do. For a long time, that was a valid question considering that there was nothing to see in Cardano other than its website, which also has its roadmap.

Cardano describes itself as a peer-reviewed blockchain project for changemakers, innovators, and visionaries. 

The project’s goal is to solve the top challenges that are associated with Ethereum and other layer-1 networks. 

For example, while Ethereum is a popular platform, the fact is that it is not the most ideal project for both blockchain developers and users. Users often complain that projects built on Ethereum are significantly slow and expensive. For example, the average cost per transaction of an Ethereum app is more than $30.

Therefore, at its core, Cardano is a project where developers can build high-performing decentralized projects that are both faster and cost-efficient. 

A good analogy of what Cardano is is that it is like Android, the company that is owned by Google. Using Android, developers can build apps such as Whatsapp and Facebook.

Cardano ecosystem: Which projects are built in Cardano? 

One of the main reasons why the Cardano price has struggled in the past few months is that there have been concerns about the projects build in the platform. This is not a question that only novice developers ask. As shown below, in 2021, Mike Novogratz of Galaxy Digital one of the people who asked about this.

Not true. I spoke to twenty of the smartest people I know in the space, and zero of them saw cardano having traction with devs.

— Mike Novogratz (@novogratz) August 15, 2021

The main reason why there were no projects built on Cardano was that for a long time, the project did not have smart contract features. 

This situation changed last year when Cardano implemented the Alonzo hard fork as part of its Goguen era. Gogue was the third phase of Cardano’s roadmap after Byron and Shelley.

Today, there are several projects that have been built on Cardano. For example, last week, one of the most trending DeFi apps was SundaeSwap, which is a DEX that is similar to Uniswap and PancakeSwap.

There are other DeFi projects built on Cardano. For example, AdaSwap is a platform that creates a bridge, swap, and trade platform between tokens. Other upcoming DEFI projects are DOEX, Cardano Mixer, Cardax, and ADAX among others.

Further, the Cardano price has declined even as the number of NFT projects on the ecosystem increase. Some of the most popular NFT projects built on Cardano are Artano, ADANFT, Artifct, and Lavada among others. The chart below provides a summary of Cardano ecosystem, including its metaverse projects like Pavia.

Cardano ecosystem

Cardano ecosystem

ADA price history

The chart below shows the long-term Cardano price chart. As you can see, the ADA price was received well by investors when it became available in Binance. In 2017, during the cryptocurrency rally, the price of Cardano jumped to an all-time high of $1.40. As you recall, this was during the period when the Bitcoin price jumped to almost $20,000.

Cardano price history

2018 was a difficult year for Cardano and other cryptocurrencies as the Federal Reserve decided to implement high-interest rates. In a bid to fight inflation, the Fed boosted rates by 100 basis points, which dragged cryptocurrencies and stocks

In 2018 and 2019, Cardano remained in a tight range during the biggest crypto winter of all time. The situation changed in 2020 amid the Covid-19 pandemic.

At the time, the ADA price started a bullish trend that saw it jump from a low of $0.035 to an all-time high of $3.20 in 2021. That was a 19,820% increase, which pushed its total market capitalization to more than $90 billion.

Between August 2021 and today, the Cardano price has slumped by over 67% and erased more than $56 billion in value.

Why has Cardano declined?

There are several reasons why the price of Cardano has declined in the past few months. First, this decline is in line with the performance of other cryptocurrencies. Indeed, the total market capitalization of Cardano has slumped from over $3 trillion to $1.6 trillion.

Second, there are fears that the Federal Reserve will embrace a more hawkish tone this year. It has already hinted that it will implement three to four rate hikes this year. As you can see below, some analysts expect that the Fed will implement about seven hikes this year.

Third, the ADA price has slumped because of the overall competition in its industry. Today, platforms like Terra, Solana, Binance Smart Chain, and even Polkadot have gained traction in the industry. 

Latest Cardano news

There have been no major Cardano news lately. The most important is the fact that Cardano has entered its Basho phase, which means that developers will focus on scaling the platform. Basho is the fourth phase of Cardano’s roadmap.

The second major Cardano news is that activity in the network has jumped to an all-time high as the number of projects in the ecosystem rise. Still, it is worth noting that this all-time high is coming from a low base.

Will Cardano soar to $10 in 2022?

Will the Cardano price soar to $10 in 2022? This is a commonly asked question. Analysts at LongForecast believe that 2022 will be another difficult year for the Cardano price. They expect that its price will continue dropping in 2022 and end the year at $0.55. The earliest that the coin will come back to $1 will be in October 2023.

Meanwhile, analysts at Wallet Investor expect that the ADA price is close to its bottom. As such, they expect that its price will rebound and end the year at about $2. Therefore, it is unlikely that Cardano will jump to $10 in 2022.

ADA price technical analysis \ Should I invest in Cardano?

The daily chart shows that the Cardano price has been in a strong bearish trend in the past few months. As a result, the coin is now sitting at a key support level, where it struggled to move below several times in 2021. The ADA price has moved below the 25-day and 50-day moving averages. It has even formed a death cross. Therefore, I suspect that the coin’s price will keep falling as bears target the key support at $0.50.

Cardano price chart

What will Cardano be worth in 2025?

For now, it is a bit difficult to have a good Cardano price prediction for 2025 because of the volatility of the cryptocurrency industry. However, in my estimation, the coin will be at a substantially higher price than where it is today because of the ongoing adoption.

How much is Cardano coin worth?

According to CoinGecko and CoinMarketCap, Cardano has a market cap of about $34 billion, making it the sixth biggest cryptocurrency in the world.

Where can I buy Cardano?

Cardano is a very popular cryptocurrency, meaning that you can find it in most exchanges like Binance, Coinbase, and Kraken. You can also buy Cardano CFDs in platforms like ATFX.

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Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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