Despite losing approximately 60% from an all-time high, Cardano (ADA) is predicted to reach $25 by 2025. This means a 2,200% increase from its current price. Currently, Cardano is trading at $1.09 as per the CoinMarketCap data. It is the seventh most valuable cryptocurrency with a market capitalization of just over $35 billion.
Cardano is being applauded for its cutting-edge blockchain technology. Developed by an Ethereum co-founder Charles Hoskinson, Cardano blockchain is a product of Input Output Global (IOG). Its key innovation is the Ouroboros proof-of-stake (PoS) consensus protocol. The Ouroboros is described as the industry’s first peer-reviewed and verifiable secure consensus protocol. It is more energy-efficient than proof-of-work (PoW) solutions. This is ingrained in Cardano’s lifeblood.
The developers say that Cardano is in its third era of development. Its smart contract functionality went live in September 2021. This signified that developers can create blockchain-based decentralized applications and decentralized finance services. Experts believe the demand for ADA and its price will increase as dApps and DeFi services necessitate transaction fees in ADA – Cardano’s native cryptocurrency.
But six months later, it’s unclear as to what is being successfully being built on Cardano. Besides SundaeSwap, nothing else seems to be going on. And this is reflected in ADA’s price as it has dropped over $2 from an all-time high of $3. As such, Ethereum is deemed the industry leader because it has deployed over 2,900 dApps and invested $150 billion in blockchain-based DeFi products.
But Cardano is gaining traction in the DeFi space. Investors have injected $74 million into its blockchain-based financial products. The next stage of Cardano’s development is critical. It involves the upgrade to the Ouroboros consensus protocol. Experts are keen on Hydra as it will enable multiple side chains. And it will enhance throughput to one million transactions per second.