Cardano Price predictions for 2022, 2025, and 2030. Is ADA a Good Investment?
Cardano has been one of the sleeper coins of the cryptocurrency ecosystem with investors impressed by the coin’s founder and the project’s potential. That changed in 2021 with a huge surge in the coin’s market cap as the new...
Cardano has been one of the sleeper coins of the cryptocurrency ecosystem with investors impressed by the coin’s founder and the project’s potential. That changed in 2021 with a huge surge in the coin’s market cap as the new roadmap started to become a reality for Cardano price predictions with the addition of smart contracts and a move to higher sustainability and scalability. Will these developments, coupled with rising corporate and decentralized finance adoption, mean a $10-20 valuation for ADA in the coming years?
What is Cardano?
Cardano is a proof-of-stake blockchain platform aimed at developers and the project has been dubbed an “Ethereum Killer”. The project has seen its market cap grow from $5 billion at the turn of the year to almost $70 billion. The Ethereum project has been going through its long-awaited V2 upgrade that aims to solve the high fees and scalability problem.
But Cardano has started to move in on Ethereum’s dominance with its own upgrade to include features such as smart contracts. Cardano price predictions also solves the sustainability issue as it does not require large amounts of energy to add blocks.
A look at the founders
The Cardano project was founded by Charles Hoskinson, who was born in Hawaii. Hoskinson attended Metropolitan State University of Denver and University of Colorado Boulder to study analytic number theory but left before completing his PhD.
Hoskinson was actually one of eight original Ethereum founders and he, therefore, has advanced knowledge of Cardano’s competitor. Hoskinson joined forces with former Ethereum colleague Jeremy Wood to form the IOHK project. IOHK is an engineering and research company that builds tools for the blockchain, with Cardano as its key focus. Hoskinson has been critical of Ethereum in the past and believes that his project will eventually overtake his former project.
Project Road Map
Cardano has begun an important transition in its roadmap and this has been a big factor in the recent valuation. The roadmap upgrades have been divided into five blocks: Byron, Shelley, Goguen, Basho, and Voltaire. The names of historical mathematics figures highlight the founder’s love of numbers and research.
Byron started the improvements with a focus on security and it also brought the official wallet for the ADA coin. The next phase was the Shelley upgrade and this was focused on decentralization. The roadmap stated: “Come to the end of the Shelley era, we expect Cardano to be 50-100 times more decentralized than other large blockchain networks”.
The initial two phases show the patience of the founder as he wanted to focus on having a really strong foundation, rather than rushing things to impress the market. The Goguen upgrade is the focus on smart contracts, which can be programmed on a blockchain to automate workflows. Cardano can now offer potentially lucrative decentralized finance (DeFi) services, giving the project a chance to compete with Ethereum in this booming sector.
The Basho development phase is aimed at solving the scalability issue and one of the core developments of Basho will be the introduction of sidechains: new blockchains, interoperable with the main Cardano chain, with immense potential to expand the network. Cardano processes about 250 transactions per second, compared with around 30 for Ethereum.
Finally, Voltaire will improve the project’s governance model to achieve self-sustainability.
You can check our latest news about ADA: Cardano news.
Cardano trails the Ethereum project in valuation by a factor of 8 with Ethereum seeing a valuation of $552 billion. Cardano is actually well valued as there is a much larger supply of ADA at 33 billion, versus the 118 million ETH supply.
Cardano has seen itself usurped by a new contender in Solano, which has moved to a valuation of $71bn, a few billion more than Cardano.
The ecosystem is now booming in Cardano due to the improved development tools. However, data from Messari shows that transaction fees on the Cardano network have increased from $0.03 to $0.47 – this represents a 1,466% increase. The IOHK team will have to solve these rising fees to take market share from Ethereum and prove itself as a viable competitor.
The upcoming Hydra upgrade will be a layer-two solution designed to improve the scalability of Cardano’s rapidly growing network, which recently passed the 2 million wallet mark. It does this by processing transactions off-chain while still using the main-chain ledger for settlements. This can significantly reduce transaction costs and improve processing time.
Hypothetical figures as high as 1,000,000 TPS have been suggested for the upgrade. The IOHK team stress that they prefer to use latency (the time for a transaction to be approved) but the project is looking at big improvement.
The initial release of Hydra is said to be imminent and IOHK confirmed that by saying that the “medium-term” for Hydra is 6-12 months for implementation feedback. Cardano’s founder has already called the upgrade a “necessity” for the large traffic that he expects from the smart contracts and DeFi solutions.
A quick search on Twitter will show that Cardano price predictions is a very active discussion piece on the platform, with 300-600 tweets in an hour. The Cardano community page has over a million followers and that is close to Ethereum’s 1.8 million. Solana has less than a million followers but is gaining ground. The press attention over the last year, alongside the price gains, have been a boost for the Cardano project.
Bitcoin has taken a lot of attention due to the recent ETF approval and headlines from companies such as Tesla. There has also been the rise of so-called meme coins. Some of those coins have little real world value and ADA is quietly humming along while the developers put in a place a platform that could really attract institutional attention and adoption.
One important point to note is that DeFi only emerged as a serious alternative to traditional finance over the last year. Crypto developers began to move away from the high gas fees of Ethereum and were drawn to the likes of Avalanche and Solana.
However, the sector is still in its infancy and the future leaders will depend on their technology and other factors such as staking yields, security and governance. Cardano has rebuilt its blockchain from the ground up with its recent roadmap and some of these newer projects may slow down as they have to undergo their own hard forks and upgrades.
As a first-mover in the scalability revolution, Cardano may have started the ball rolling to unseat some of the current DeFi leaders. Cryptocurrency investors may enjoy the offerings currently available but corporate adoption could be the game-changer.
Cardano Price Prediction 2021
The price action in 2021 suggests that ADA has seen the best of its gains. The coin has been lifted to a higher market cap in relation to the other major coins and cemented its place in the top 10 but the price of Bitcoin is a threat in the near-term.
BTC has soared to new highs again but has failed to hold them and there is a high open interest in the growing futures market. A swift unwind could hurt ADA with support at $1.50 and ahead of the $1 level.
Cardano Price Prediction 2025
If we project the 2021 highs out for ADA then we are looking at a resistance level of around $7 into the end of 2022. As noted in this article, Cardano trails the valuation of Ethereum by around 8 times and there is ample room to gain on Ethereum by eating some of its lunch. Investors should now look to the upcoming Hydra scalability upgrade, which the founder Charles Hoskinson has said is a commercial priority.
We also have to consider the rise of institutional investors who are adding investment into the community.
The corporate world has not embraced the blockchain in full and when they do, Cardano will be a big player. These recent upgrades and the coming scalability upgrade could be perfect timing for ADA to grab a large share of new market entrants.
Another interesting fundamental for ADA is that 72% of the circulating supply is staked. The percentage of staked supply has been on the rise since the implementation of the Alonzo hard fork. A growing increase in staked supply reduces the circulation of ADA tokens, which will fuel future rallies.
Cardano Price Prediction 2030
Using the same pitchfork analysis projected to January 2030 would bring resistance in the mid-$20 levels for ADA. That would be ten times the current value but this is a possibility if the two drivers of taking ETH share in DeFi and attracting large corporate client numbers.
An increase of 10 times in the coin’s valuation would still be below the current market cap of Bitcoin and slightly ahead of Ethereum’s current valuation. Analysts such as Plan B who runs the Bitcoin stock-to-flow model has projected a $100k BTC price into 2021 but up to $1 million by 2025. If the crypto market continues on its current path then anything is possible for Cardano and the project developments are good timing.
Cardano has lived under the shadow of its Ethereum killer tag, but that cannot happen overnight. However, in order to kill Ethereum, you have to solve the problems that have plagued the world’s number two coin: high transaction fees and scalability. Unfortunately, Cardano has seen its fees also rising this year with increased adoption and will have to tackle that. The upcoming Hydra upgrade is set to supercharge the project’s scalability and investors may want to get in ahead of those announcements as the actual figures are a grey area, but the upgrade will make ADA one of the most scalable coins in the crypto ecosystem.
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