Cardano is a blockchain-enabled platform for innovators, visionaries, and changemakers, complete with the tools needed to disrupt the crypto world. It is the largest blockchain to successfully implement a proof-of-stake consensus mechanism; which is more energy efficient than Bitcoin’s proof-of-work algorithm. ADA, Cardano’s native token, is currently ranked fourth among cryptocurrencies. In this article, we will follow Cardano’s journey and the potential it holds for the future.
Introduction and Premise
While blockchain technology has yet to become truly mainstream; developers have already progressed from improving first-generation blockchains to developing second and third-generation blockchains. Ethereum, the popular second-generation blockchain; was initially created to address some of the scalability issues that Bitcoin, a first-generation blockchain, was experiencing. Third-generation blockchains, which aim to improve on Ethereum, have recently emerged.
Charles Hoskinson, one of the Ethereum founders, created Cardano, a leading third generation blockchain. Cardano is the first blockchain platform built on peer-reviewed research and developed by academics and industry experts using evidence-based methods. Cardano, which was launched in 2017; aims to help build a society that is fair, secure, and transparent by redistributing power to individuals.
Cardano, which can handle more than 250 transactions per second (TPS); is faster than Ethereum, which can only handle 15 TPS. Cardano implemented DeFi protocols, as well as the ability to support smart contracts, in September of this year.
Fundamentals of Cardano
Cardano’s native token; ADA, can be used by users to support blockchain transactions as well as transfer value to other users. ADA has a maximum supply of 45 billion, of which more than 33 billion are currently in circulation. It is currently ranked among the top five cryptocurrencies in the world; with a price of $2.15 per token and a market capitalization of more than $70 billion. ADA offers a popular staking programme in which users can earn interest on their deposits.
Short-term Technical Analysis
ADA began 2021 with a price tag of less than $0.2 per token and; reached an all-time high of $3.10 in September; representing a 15x increase in nine months.
Since the launch of its smart contract in early September, ADA has struggled to break through a resistance trendline. It has fallen steadily to the $2 range; where it has found support at its 100-day moving average and the.5 fibonacci retracement. Further downtrending may find strong support in the $1.8 range – the intersection of its.618 retracement,.66 retracement, and 200-day moving average.
At $1.8, ADA is a good buy for long-term investors; as it has the potential to reach $10 in the next year as Bitcoin sets new all-time highs.
A Growing Ecosystem with Great Potential
Following the release of its smart contracts, many companies began developing products to support the blockchain.
The Cardano ecosystem is expected to expand in the coming weeks, with multiple products becoming available to the public. Decentralized exchanges, smart DeFi layers, NFT marketplaces, swaps, and others are examples. As these products become available, the demand for ADA will rise. ADA is expected to reclaim its $3 level by December and enter price discovery mode.
Source: The News Minute