Cardano (ADA) has been one of the best performing cryptocurrencies of 2021. Cardano recently shattered all-time highs and cemented itself as the 3rd largest crypto asset by market cap at a price of around $3. Japan has also recently given Cardano the green light to be listed on exchanges, opening it up to the 3rd largest economy in the world.

September 2021 is the scheduled implementation of smart contract functionality on Cardano. The introduction of smart contracts will allow Cardano to become a player in the decentralized finance (DeFi) space and possibly become an even bigger rival to Ethereum. Holders of the Cardano token (ADA) can stake their ADA and receive rewards.CLAIM NOWGet $50 when you trade crypto!Limited time offer: buy $500 worth of crypto and get a bonus $50! Build a diversified portfolio with Bitcoin, Ethereum, and other popular coins — or simply copy eToro’s top crypto traders!DisclosureeToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

Contents

  1. What Is Cardano?
  2. Cardano Market Capitalization
  3. C. Jebb’s Bull Case for Cardano
  4. Jason’s Bear Case for Cardano
  5. Where to Buy Cardano
  6. How Long Will it Take for Cardano to Reach $10?
  7. Where to Store Cardano Safely
    1. Best Hardware Wallet: Ledger
    2. Best Software Wallet: ZenGo
  8. Current Crypto Prices
  9. So, Is Cardano a Good Investment?

What Is Cardano?

Cardano is a proof-of-stake blockchain platform launched in 2017 by former Ethereum developer Charles Hoskinson. Cardano, the 1st blockchain built based on peer-reviewed research, is being developed through evidence-based methods. Overcoming the scalability and security vulnerability issues of Ethereum is the goal of the project. Hoskinson also wanted Cardano to be a for-profit entity, accepting venture capitalist donations. In contrast, Ethereum was adamant about remaining a non-profit organization.

Elon Musk caused a stir in the markets when he tweeted that Tesla (NASDAQ: TSLA) won’t begin accepting Bitcoin until it increases its use of renewable energy. Cardano is a proof-of-stake blockchain in contrast to Bitcoin and Ethereum, which both use a proof-of-work protocol. The proof-of-stake protocol is more environmentally friendly since it uses significantly less energy than proof-of-work chains. The proof-of-stake system can achieve more than 4 million times the energy efficiency of a proof-of-work system.

The Cardano platform consists of 2 layers. The settlement layer is where the ADA token exists and keeps track of transactions. The 2nd layer, the computation layer, enables smart contracts and decentralized applications (dApps) to run on the platform.

Cardano Market Capitalization

The market cap of Cardano as of August 2021 is around $90 billion, cementing its position as the 3rd biggest cryptocurrency according to CoinMarketCap ($89,954,280,847). The current price of a single ADA token is just under $3 — almost 100 times greater than its 2020 low of around $0.03.

You shouldn’t focus too much on the cost of an asset because it’s the market cap that determines the market value of a project’s circulating token supply. The market cap is the total cost to purchase all the projects tokens entirely in a single transaction. The market cap also helps disclose the amount of risk involved when investing in a project. Cardano was able to soar to the 3rd highest market cap because of the anticipation of the Alonzo hard fork in September 2021. The hard fork will allow DeFi, non-fungible tokens (NFTs) and gaming apps to go live on Cardano.

The project’s large-cap ranking (about $90 billion) makes it principally categorized as a “safe” investment. Analysts identify potential capacity for Cardano to grow in value. Cardano has a chance to match Ethereum’s projection of hitting a $1 trillion market cap by 2022. The Cardano ecosystem is forecasted to grow exponentially, and owning ADA could be rewarding as adoption grows.

C. Jebb’s Bull Case for Cardano

C. Jebb is a talented trader who also provides insights into current events and predictions on the crypto market. He thinks that after ripping through all-time highs, Cardano could be due for a correction to the downside in the short term. However, by recently adding Cardano, Japanese exchanges could help produce a bullish move to the upside long-term. C. Jebb predicts that Cardano will go to $10 in the next 10 to 12 months but looks for it to correct in the short term.

In some ways, Cardano is in a similar position to that of Ethereum in 2018, on the cusp of making its debut into the DeFi and NFT space with the release of SundaeSwap. SundaeSwap is a DEX built on the Cardano blockchain. Sundaeswap uses the same protocol popularized by Uniswap, with several innovative adaptations for Cardano. DeFi protocols running on Cardano could be a bullish catalyst for the long-term growth of the ADA token price.

Jason’s Bear Case for Cardano

Jason from “A Chain of Blocks” podcast is a brilliant market analyst who is a big Cardano fan. Still, he also sees a possible bearish scenario for the project. The crypto space is exceptionally fast-paced, yet the development at Cardano has been moving at a languid pace. Projects that launched years after Cardano like Elrond and Polkadot have delivered far more robust ecosystems. The lack of smart contract functionality means that not many developers are building on Cardano.

Other projects could increase their lead in development if Cardano delays releasing smart contracts. If smart contracts succeed, Cardano will still need time to implement sharding to overcome scalability issues. If the bearish scenario plays out, Jason didn’t give a price prediction but sees a deep correction coming for the price of ADA.

By block head

Block Head is a blockchain journalist.