Cardano ADA coin witnessed a stellar performance in the month of August and early September 2021. The massive price increase started after the announcement of September 12, 2021, as the date for Cardano Alonzo hard fork’s smart contract update. ADA’s price against the US Dollar increased from around US$1.3101 to US$2.7332 within one month (August 2021). The price doubled within 30-days.
On September 2, 2021, the ADA/USD pair hit an ATH (All-Time High) level at US$3.10 with the market cap hovering close to US$99 billion. Since reaching the ATH, the price has corrected by around 25%. At press time (September 8, 2021), the Cardano ADA price is now hovering around US$2.32 with a market cap above US$74 billion. In fact, the market cap of the global crypto market stands at US$2.04 trillion currently.
Most experts and analysts believe that by the end of 2021, the price of each ADA will reach anywhere from US$5 to US$7. Some also believe that it may reach US$10 by 2021-end.
After the well-awaited software upgrade this month, the Cardano network will start supporting smart contracts. Smart contracts are self-executing financial agreements. It is the smart contracts on which the DeFi protocols and NFTs are based. To understand how good the Cardano project is for you to invest in, let me walk you through the different FAQs (Frequently Asked Questions) with Cardano ADA.
Cardano is a 3rd-gen public blockchain, which is widely used as a Dapp (Decentralized Application) development platform. This network caught the imagination of the international media as it was the first-ever blockchain that incorporated a peer-reviewed research strategy into its core principles.
A solid base of principles, strong fundamental, and a wide array of practical use cases has made Cardano ADA coins one of the topmost cryptocurrencies globally. In terms of market cap, it is the 3rd largest cryptocurrency (just behind the mighty Bitcoin BTC and Ethereum ETH).
Cardano, which is the 3rd generation cryptocurrency, has learned lessons from the concepts and flaws of both Bitcoin and Ethereum. It has improved upon the shortcomings of both BTC and ETH. Cardano ADA uses layered architecture for improving sustainability, security, and scalability. The third-gen cryptos rectify their inefficiencies and consequently create more usefulness.
Cardano was founded by Charles Hoskinson, who is the CEO of IOHK. ADA’s max supply and circulating supply are 45,000,000,000 ADA and 32.03 billion ADA (71%) respectively.
When it comes to large-scale blockchain adoption, both Bitcoin and Ethereum blockchains face major issues including sustainability, interoperability, and scalability. Cardano is doing away with these common issues by developing design principles and engineering best practices.
To know how Cardano works, it is important to know the 4 major benefits that the network provides you.
Now, let’s check them one by one.
Cardano, in its earlier days, was able to handle just around 10 transactions per second (tps). However, currently, Cardano can process more than 1-million transactions per second. This has become possible after the release of a paper by Charles Hoskinson, which explains the Hydra network. It is a Layer 2 scaling solution. This new-age solution helps the off-chain transaction process by utilizing state channels.
Cardano blockchain has introduced new standards into the market for enabling interoperability across networks. The 3 major standards introduced by these systems are:
Blockchain interoperability has introduced security concerns. It has been taken care of by Cardano network by introducing new standards to manage 3 key aspects:
A new consensus mechanism has been introduced by Cardano. It is called Ouroboros. This consensus mechanism is a chain-based PoS protocol that depends upon randomly chosen leaders for approving blocks.
In the case of the Cardano blockchain, the node that adds the next block in the blockchain receives a reward in terms of the ADA crypto. This reward is given for the effort and resources the node has put in. This aspect is quite similar to most of the other blockchains. Now, let me walk you through the process involved.
At the start of every epoch period, leaders are selected by the system from the pool of stakeholders. Epochs work as the blockchain’s snapshot from a previous date. It is important for epochs to originate from a block that is sufficiently deep in the chain of transactions. This aspect is extremely important because it helps in avoiding chain alteration possibilities. It, in turn, ensures the maintenance of a high level of network security.
The system chooses a leader from the stakeholder pool on the basis of the fixed stake distribution as well as a random seed. A multi-party computation (MPC) between stakeholders in the previous epoch is utilized by the seed for generating randomly. If you, as a stakeholder, want to improve your chance of getting chosen as a leader, you should have a high amount of staked ADA. In this way, Cardano has introduced the first provably secure proof-of-stake (PoS) protocol.
Yes, Cardano ADA will hit US$10 pretty soon, and is only a matter of time. Analysts believe that by the end of 2022, the ADA price will reach anywhere from US$12 to US$15.
In 2021 YTD (as of September 8, 2021), the price of Cardano ADA has increased by 1,259%. ADA price has jumped from as low as US$0.1817 (on January 1, 2021) to US$2.36 (at press time on September 8, 2021). It is widely believed that the momentum of price rise will increase with the implementation of the Cardano Alonzo hard fork’s smart contract update on September 12, 2021.
Yes, Cardano ADA will reach US$50 sooner than you can believe or perceive. Analysts believe that the ADA price will reach US$50 by 2029 or even sooner. Many believe that ADA may also dethrone Ethereum ETH and become the second-largest blockchain platform, in terms of market cap. The main advantage of ADA is its advantage of high scalability and strong security, coupled with low gas fees. ADA proponents say that ADA will most of the traders who are driven away by the high gas fees of the Ethereum network.
Though US$100 seems a farfetched idea now for Cardano ADA, it is not a distant dream anymore. You can expect the ADA price to reach US$100 by 2030. Analysts believe that the possibility of Cardano to achieve the US$100 mark is dependent upon the protocol’s possibility of achieving its goals and visions during the Alonzo update.
The Cardano price is expected to reach around US$37 and US$75-to-100 by 2025 and 2030 respectively.
You can buy Cardano ADA from almost all cryptocurrency exchanges including:
If you are investing in Cardano ADA for a long period of time, you should store it in your hardware wallets such as Ledger Nano X or S, Trezor Model T, and others. You can also keep your ADA on a desktop wallet (Exodus, Guarda, Electrum, etc.) or a mobile wallet (Coinbase wallet, Binance wallet, etc).
You can buy and sell cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos.
If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit.
You can also diversify your crypto coin portfolio by including other cryptocurrencies such as Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others.
Also, invest in various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return.
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