ADA is the cryptocurrency backed by the Cardano blockchain network. Its price at the time of writing is $0.683165. Trading at its all-time high, Cardano is up 5.35% in these last 24 hours. With analysts predicting that Cardano will soon hit $1, here is the backstory of these predictions.
Two Major Catalysts Propelling ADA to Its High Bull Run
Grayscale Investments, a NY based trusted authority on digital currency investing and crypto-asset management, announced that they have added Cardano-enabled trust in their range of services. Since the announcement, there is a huge surge in the exchange rate of ADA/USD. The announcement on January 24, 2021, resulted in an approximately 70% rally in the price of Cardano.
Grayscale’s CEO Michael Sonnenshein later clarified that the firm would notice the demand for a rise in ADA in the future. The prospects of Cardano emerging as a genuine competitor of Ethereum is altering the way mainstream investment firms are considering it.
Snapping the Second-Largest Cryptocurrency
Cardano settlement layer is used for settling transactions that use Cardano’s currency. The control layer of Cardano (under development) is used for smart contracts. It is said that once the upgrade is complete, Cardano will support the development of smart contracts. The hierarchical structure of Cardano ensures that it can be used to generate smart contracts and work as a medium of exchange as well. Thus, it is no surprise if we compare Cardano and Ethereum on these terms.
The so-called “Ethereum killer” is on fire throughout 2020. The surge in the price of Cardano is way high in the last three days. A 600% surge was seen between March and July last year. Talking about its performance in January 2021, Cardano has already shown a 230% increase since January, and the inverse head and shoulders forecast that it will rise to $2.0.
These are the two principal reasons that are driving Cardano’s bullish. But again, it is up to you whether you are seeking long-term targets or behind short-term profits.