One thing that is certain in the crypto market is, if you are here for the long term, you will not face many hurdles in making huge gains from your crypto investments. Nearly every listed coin has made its investors’ portfolio glow extraordinarily at times when none of the other investment options available to people showed significant returns on investments. One such coin is Cardano, the native token of which is ADA.
Cardano has been on the list of investors in recent times, it’s because of the potential in the asset and its advancements among its peers. This can be said without even thinking much that Cardano is an astonishing blockchain technology blessed with the title of safe, secure, and tenable blockchain with seminal utilization cases. At the time of writing this article, Cardano is being traded for $2.18, with its total market capitalization standing at $69.80 billion, making it the fourth-largest cryptocurrency in terms of market capitalization.
Talking theoretically, Cardano is categorized as a blockchain of third-generation that is structurally made available to all populations along with being a platform with decentralized applications further enabled. As per the categorization, the third-gen blockchain platforms are considered to have learned and taken examples from previous (second-gen) blockchains. For more knowledge regarding the crypto space, we advise you to visit cryptolaun.ch.
Charles Hoskinson founded Cardano back in the year 2015, and he is the same person who co-founded Ethereum, hence, the two blockchains have some similar features. There are several reasons behind the surge in popularity as well as prices of Cardano (ADA), like expandability, interoperation, reliability, energy efficiency, and Ouroboros.
Earlier, when Cardano had the potential of carrying out 10 transactions per second only, the investors were uncertain about its future. However, at present, with the recent development of a layer 2 solution, Hydra by Alonzo upgrade, Cardano has surpassed a significant milestone in its journey, establishing a base level documenting competence that will ultimately enable advanced innovation and network development.
The Layer 2 scaling arrangement, Hydra, utilizes state diverts in order to manage exchanges off-chain, and with the help of this arrangement, Cardano is capable of measuring over 1,000,000 transactions per second.
Cardano ventures to familiarize norms into the market with empowering integration across networks. These substructures of Cardano assimilate blockchain conducting prototypes, substructure upgrade protocols, and potentialities. At present, talking about the reliability of the Cardano blockchain, the platform already has standards for handling privacy, security, and the decentralization factor.
Another advantage that Cardano has over the flagship cryptocurrency Bitcoin, and its competitor Ethereum, is that it is energy-efficient and uses significantly low energy in a year.
As revealed officially, Bitcoin and Ethereum use around 130 and 50 terawatt-hours in a year respectively, whereas, on the other hand, Cardano uses only 6 gigawatt-hours.
Ouroboros is a proof-of-stake protocol based on blockchain and this new consensus contrivance has been introduced by Cardano recently. In addition to this, it should be noted that Ouroboros depend on leaders selected randomly to authenticate blocks and just like other blockchains, the node that adds the next block acquires a reward for the same.
The system chooses random leaders from the stakeholder pool at the beginning of each epoch period and thus, Cardano has successfully managed to introduce the very first demonstrably secure PoS protocol.
At present, Cardano is the fourth-largest cryptocurrency in the world in terms of market capitalization as it has soared to distinction over the past few years. It should be emphasized that Cardano does not struggle while attaining highs like Bitcoin.
For this year, it is expected that Cardano will be able to attain the price level of $3.50, however, Jake Wujastyk of TrendSpider mentions the price level of $3.10 as a critical level to cross in order for further uptrend. Once the level of $3.10 is crossed, which is also the all-time high of the asset, it is expected to grow further.
In accordance with other speculations witnessed by Cardano’s bullish pattern, there are chances that the asset might rest on the $5 mark by the end of this year, marking the beginning of the year with this price level. With the rising interest of investors in Cardano, it won’t be too hard to say that these levels are untouchable for ADA.
The best returns are accrued in a long-term investment, and also in the case of Cardano, the future is bright for the cryptocurrency. Talking about the long-term gains and price levels of Cardano, if everything goes right and the network keeps on adding beneficial upgrades, the price of the cryptocurrency can head to the mark of $10. This will be made possible by increased adoption of Cardano due to the environmentally-friendly working of its network.
Well, nothing can be said for sure of what is going to happen with Cardano or any cryptocurrency in the crypto space, as the crypto market is way too volatile and uncertain. Hence, it won’t be completely wrong to say that the price of Cardano can explode to double-digits easily, marking triple-digit returns from now. However, this article is not an investment recommendation, and before investing your money in any asset involved with fluctuations, you must carry out your own research thoroughly.
Moreover, it should be noted that risk is inversely proportional to the duration of your investment in the asset, provided there is no error encountered in the network. Thus, if you plan to stay invested in the cryptocurrency for a notable time period, then there are chances that this asset will multiply your investments.