ADA | Pros, Cons, and Investment Perspectives

Cardano is a project aimed at developing the digital economy. In the summer of 2021, the native token of the ADA project entered the TOP-3 largest cryptocurrencies. Now its positions look more modest, but the coin still remains in the top ten market leaders.

What is Cardano (ADA)

Cardano is a decentralized smart contract platform based on the blockchain. The development team led by Charles Hoskins aims to create a platform with the most advanced functionality that will surpass peers in terms of scalability and throughput. Cardano is a fairly likely potential competitor to Ethereum. Among the project, partners are several leading universities.

Unlike most crypto projects that move quickly, the Cardano team is doing the opposite. All developments are based on proven data and approaches. Slow, methodical development increases the ability to identify and address potential risks before they become a problem for users.

ADA is the native token of the Cardano platform. The coin is named after Ada Lovelace, who is called the world’s first programmer. The ADA gives holders a say in the governance of the blockchain. Votes can be delegated and rewarded for them. The coin is supported by many major exchanges and can be freely purchased with digital or fiat money. Exchanges are the safest place for various cryptocurrency transactions, including XLM to BTC conversion.

ADA Price History

High achievements in the past are not necessarily repeated in the future, but give an idea of ​​the possible behavior of the coin.

The project started in 2015, and the coin entered the market in 2017. This event can hardly be called bright – most of the year the coin was traded at $0.02. 2018 began with the active growth of the cryptocurrency market. The general trend did not bypass ADA: in less than a week, the coin added more than 260% in price.

The second cycle of intensive growth of the ADA occurred in 2021. In the first quarter, the coin rose by 560%. Against the backdrop of a general market correction in May 2021, the price fell by half. It was a good moment to partially exchange BTC to ADA to diversify the investment portfolio. The fall was not the deepest and not too long.

In early September, ADA reached an all-time high. The price of the coin did not reach 3 dollars a little. The outlawing of cryptocurrencies in China has caused capital outflows from the ADA.

Now the coin is trading just below $0.5.

Pros and Cons of Cardano

Cardano has a strong and experienced team of developers who, before launching the next update, first bring it to the maximum possible perfection. This is very different from the approach of the Ethereum team, which is more focused on maintaining a high pace of development of the ecosystem.

The Cardano platform was originally created on the basis of an advanced Proof of Stake consensus algorithm. This solution provides low network power consumption with high performance. In these parameters, the Cardano blockchain is superior to earlier blockchains based on the more cumbersome and energy-intensive Proof-of-Work algorithm.

Scalability is one of the most pressing problems of early blockchains. In tests, Cardano has shown the ability to process over 250 transactions per second.

At the beginning of September 2021, the Alonzo hard fork was launched, within which the functions of smart contracts were introduced. It was expected that this would cause an outflow of some users from Ethereum. However, these expectations were not met. The number of smart contracts on the Cardano platform has indeed increased, but real competition with Ethereum is still far away.

Is Cardano a Good Investment?

Cardano technology has great prospects for application in various industries. Among the most well-known is the verification of the authenticity of medicines and other goods to eliminate the risk of acquiring counterfeit goods. In some countries, blockchain is already being used to create personal databases that are used for quick identification of a person. The use of the Cardano blockchain in supply logistics looks quite promising.

Forecasts for ADA over the next few years are moderately optimistic. The recovery of prices to the level of historical maximum is not ruled out, however, its timing is unclear. The coin has good growth potential, but its realization largely depends on the success or failure of its closest competitors.