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Will Cardano Continue to Ascend? That is the $80 Billion Question
ardano's rise has been spectacular, with smart contracts on the horizon.
On August 16, Bloomberg reported that Cardano (ADA) had surpassed Bitcoin as the world's third-largest cryptocurrency. Cardano has largely traded between $2.40 and $2.57 in the last day and is currently up 130 percent in the last month and about 1,300 percent year to date.
There is little doubt that Cardano's Ouroboros proof-of-stake protocol will attract a lot of adherents in 2021. However, in order for ADA to continue heading higher, catalysts must be generated to drive the price higher.
Will Cardano remain in motion for the time being? That is the million-dollar question.
Cardano Is Worth $80 Billion
Cardano has spent the day of August 20 primarily climbing while remaining close to a market valuation of $80 billion. This cryptocurrency, like all others, fluctuates quickly, so it could be higher or lower by the time you hear this. I last wrote about Cardano in early July. Despite these new partnerships, I suggested that Cardano's success or failure would be determined by smart contracts and the usage of the cryptocurrency.
“I continue to feel that ADA is the cryptocurrency with the greatest tangible opportunity that is not named Bitcoin (BTC) or Ethereum (ETH). The collaborations should be beneficial in persuading others of this,” I wrote on July 8.
Cardano has risen by more than 80% since my essay. Cardano's head of delivery, Nigel Hemsley, stated in an Aug. 13 video that smart contracts would be ready on Sep. 12 as part of the Alonzo upgrade, which has had a huge impact on this appreciation.
According to Coindesk‘s Frances Yue, crypto analyst Yuri Mazur, “any gain in the price of cryptocurrencies is either directly triggered by positive news pushing up sentiments among purchasers or a growth in parallel with the overall market trend.” Cardano's widely anticipated Alonzo upgrade is also a solid motivation for investors to accumulate the coin.”
While the recent bullishness in crypto prices is responsible for some of the recent gains, it would be unwise to dismiss the significance of the Alonzo upgrade. After all, Cardano recorded the third-highest 7-day gain of 25.6 percent through Aug. 20 among the 10 cryptocurrencies with a market valuation of $20 billion or greater.
As the Bloomberg story highlighted, not everyone is confident that Cardano's smart-contract functionality will entice developers. It cites a tweet from Galaxy Digital LP CEO Mike Novogratz, who said, "I spoke to twenty of the sharpest individuals I know in the space, and none of them envisioned Cardano having traction."
There is obviously scepticism about Cardano's $80-billion valuation. However, if it were an S&P 500 firm, it would be within the top 200 in terms of market value.
Testing Its All-Time High
Cardano's previous all-time high was $2.46. That figure was reached in May. On August 20, it surpassed that level.
To stay above $2.46 for an extended period of time, the Alonzo upgrade will need to provide clear indication that Cardano's smart contracts are attracting the attention of blockchain developers. If not, I'm not sure how it will keep this hot streak going.
Brendan Rearick, an investorPlace associate news writer, recently addressed some Cardano price forecasts. CoinPriceForecast's projection of $3.10 by the end of 2021 is the most aggressive of the four. This implies that Cardano has a 24 percent upside over the next 4.5 months.
However, of the four, I believe WalletInvestor's $3 price forecast by August 2022 is the most realistic. This offers Cardano and its development team, Input Output Hong Kong (IOHK), more time to provide utility to financial services businesses and blockchain innovators.
As InvestorPlace contributor Chris MacDonald recently pointed out, not only do the Alonzo upgrade's smart contracts allow for the usage of decentralised finance (DeFi) apps on the Cardano network, but non-fungible tokens (NFTs) could also be a very compelling component of its smart contracts.
Now all we have to do is wait until September 12th.
While I doubt Cardano to keep up its blistering pace, I wouldn't be surprised if it retests the $2.46 mark. Unless the Alonzo improvement is a complete disaster, I envision Cardano continuing to move forwards, but at a slower speed.
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By Crypto Piratesardano's rise has been spectacular, with smart contracts on the horizon.
On August 16, Bloomberg reported that Cardano (ADA) had surpassed Bitcoin as the world's third-largest cryptocurrency. Cardano has largely traded between $2.40 and $2.57 in the last day and is currently up 130 percent in the last month and about 1,300 percent year to date.
There is little doubt that Cardano's Ouroboros proof-of-stake protocol will attract a lot of adherents in 2021. However, in order for ADA to continue heading higher, catalysts must be generated to drive the price higher.
Will Cardano remain in motion for the time being? That is the million-dollar question.
Cardano Is Worth $80 Billion
Cardano has spent the day of August 20 primarily climbing while remaining close to a market valuation of $80 billion. This cryptocurrency, like all others, fluctuates quickly, so it could be higher or lower by the time you hear this. I last wrote about Cardano in early July. Despite these new partnerships, I suggested that Cardano's success or failure would be determined by smart contracts and the usage of the cryptocurrency.
“I continue to feel that ADA is the cryptocurrency with the greatest tangible opportunity that is not named Bitcoin (BTC) or Ethereum (ETH). The collaborations should be beneficial in persuading others of this,” I wrote on July 8.
Cardano has risen by more than 80% since my essay. Cardano's head of delivery, Nigel Hemsley, stated in an Aug. 13 video that smart contracts would be ready on Sep. 12 as part of the Alonzo upgrade, which has had a huge impact on this appreciation.
According to Coindesk‘s Frances Yue, crypto analyst Yuri Mazur, “any gain in the price of cryptocurrencies is either directly triggered by positive news pushing up sentiments among purchasers or a growth in parallel with the overall market trend.” Cardano's widely anticipated Alonzo upgrade is also a solid motivation for investors to accumulate the coin.”
While the recent bullishness in crypto prices is responsible for some of the recent gains, it would be unwise to dismiss the significance of the Alonzo upgrade. After all, Cardano recorded the third-highest 7-day gain of 25.6 percent through Aug. 20 among the 10 cryptocurrencies with a market valuation of $20 billion or greater.
As the Bloomberg story highlighted, not everyone is confident that Cardano's smart-contract functionality will entice developers. It cites a tweet from Galaxy Digital LP CEO Mike Novogratz, who said, "I spoke to twenty of the sharpest individuals I know in the space, and none of them envisioned Cardano having traction."
There is obviously scepticism about Cardano's $80-billion valuation. However, if it were an S&P 500 firm, it would be within the top 200 in terms of market value.
Testing Its All-Time High
Cardano's previous all-time high was $2.46. That figure was reached in May. On August 20, it surpassed that level.
To stay above $2.46 for an extended period of time, the Alonzo upgrade will need to provide clear indication that Cardano's smart contracts are attracting the attention of blockchain developers. If not, I'm not sure how it will keep this hot streak going.
Brendan Rearick, an investorPlace associate news writer, recently addressed some Cardano price forecasts. CoinPriceForecast's projection of $3.10 by the end of 2021 is the most aggressive of the four. This implies that Cardano has a 24 percent upside over the next 4.5 months.
However, of the four, I believe WalletInvestor's $3 price forecast by August 2022 is the most realistic. This offers Cardano and its development team, Input Output Hong Kong (IOHK), more time to provide utility to financial services businesses and blockchain innovators.
As InvestorPlace contributor Chris MacDonald recently pointed out, not only do the Alonzo upgrade's smart contracts allow for the usage of decentralised finance (DeFi) apps on the Cardano network, but non-fungible tokens (NFTs) could also be a very compelling component of its smart contracts.
Now all we have to do is wait until September 12th.
While I doubt Cardano to keep up its blistering pace, I wouldn't be surprised if it retests the $2.46 mark. Unless the Alonzo improvement is a complete disaster, I envision Cardano continuing to move forwards, but at a slower speed.
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