Cardano ADA

About Cardano

Cardano is a cryptocurrency network and open source project aiming to be the world's first peer-reviewed public blockchain.

Originally launched in 2017 by Charles Hoskinson, co-founder of Ethereum, the platform consists of two different networks. The Cardano Settlement Layer (CSL) is used to settle transactions that use Ada, Cardano’s cryptocurrency. The Cardano Control Layer (CCL), which continues to be developed, will be used for smart contracts and decentralized applications, known as dapps.

The blockchain platform is built around a proof-of-stake consensus protocol known as Ouroboros. This has been designed to be more sustainable when it comes to the development of new coins by reducing the amount of resources, such as energy and time invested in them.

According to Cardano, “it combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems and societies”.

• Cardano was officially launched in 2017 by former Ethereum co-founder, Charles Hoskinson.
• Cardano is the first blockchain to implement Ouroboros, the first peer-reviewed, verifiably secure blockchain protocol.
• Ada is Cardano’s native token, named after mathematician, Ada Lovelace.
• Cardano is currently still in development, with the platform subject to ongoing updates.

What is the difference between Cardano and other cryptocurrencies?

Cardano is a rapidly-emerging cryptocurrency and one being taken increasingly seriously by investors in rival currencies, such as Ethereum or Bitcoin. The Ada token used on the Cardano exchange is one of the fastest growing, increasing by 7,400% between March 2020 and March 2021.

It is different to its rivals as it claims to be a third-generation blockchain. This means developers of the platform are always looking to provide solutions to challenges experienced by other cryptocurrencies. The developers behind the crypto have worked with a network of academics and scientists to inform its protocols. As a public, Open Source blockchain, Cardano is thought to be the first to be peer-reviewed and developed by a team of experts who have authored as many as 90 papers on blockchain technology within a range of settings.

The two-layered structure to Cardano can offer more sophistication than other single-layered networks, which experience slower transaction fees and network congestion.

Cardano Price History

Cardano first appeared in September 2017, with Ada initially trading at $0.02. It has since reached a high of $1.43 in March 2021 but experienced a journey full of twists and turns.

By November 2017, the cryptocurrency saw some huge surges, reaching a market cap of $1bn, then hitting $1.21 by January, an increase of 4,000%. It then had a market cap of $31bn but saw a series of crashes over the rest of the year. By the close of 2018, prices had fallen to $0.03, almost back to where it had started. During 2019, Cardano flat-lined for much of the year. A couple of surges saw it briefly rise but the currency failed to break $0.10.

Cardano’s Ada made gains in the first few months of 2020 but lost them after its price fell by 45% in one day during the first few months of the year. However, by August 2020, Cardano had returned to $0.14 and ended the year at $0.17. 2021 saw even greater growth with the price rising to $1.43 during the first quarter and achieving a market cap of over $40 billion.

What determines the price of Cardano’s Ada?

The price of Cardano’s Ada changes according to supply and demand, and is in a constant state of flux. As with other cryptocurrencies, prices can be volatile and prone to fluctuations as they are young when compared with traditionally more stable currencies.

As such, Ada has experienced declines and surges as you might expect with any fledgling cryptocurrency. The price also varies between exchanges as the currency is decentralized. Trading volumes and liquidity are different for each platform and this is what impacts values.

Certain trends around Ada’s valuation can be observed. Its surges can be linked to a wider interest in cryptocurrency, driven by Bitcoin and the recent bull runs surrounding it.

The fortunes of the wider markets also have an impact on price and volatility of a currency. Digital currencies, as a whole, have benefitted from Covid-19’s effect on traditional finance as investors look to different vehicles to diversify their portfolios, and reduce any risks they may well be exposed to via traditional assets.

Cardano Price Prediction

Some important factors surround Cardano and Ada, suggesting it could have a positive future. As with all cryptocurrencies, market trends, investor sentiment and project updates will all feed into any forecasts around valuation.

Every Ada holder holds a stake in the Cardano network. Any Ada stored in a wallet can be delegated to a stake pool to earn rewards, meaning it can be taken off the exchange. Doing so would restrict supply and lead to a boost in price due to scarcity of the tokens as there are only a finite number of Ada available.

It is likely that ongoing research and development surrounding the blockchain’s protocol will also have a positive impact on values. Growth has been influenced by 2020’s Shelley mainmet which brought the network closer to decentralization. The Goguen mainmet is the next widely anticipated update, which will be the next stage of development. Scheduled to take place at some point in 2021, many are hoping for a raft of exciting new features to propel the cryptocurrency into the future, including the ability to build dapps. It is this level of innovation which could mean Cardano and Ada have positive long-term prospects, giving the network and its currency the edge over some of its competitors.

A number of endorsements from leading companies and authorities lend the currency greater legitimacy and enhance its reputation. Leading footwear firm, New Balance will use distributed ledger blockchain technology to track the authenticity of its products, with the platform built on the Cardano blockchain. Previously, Cardano teamed up with the Ethiopian government, enabling them to deploy their technology in a variety of industries throughout the country. These endorsements have helped build trust in the company’s name and brand.

Cardano’s environmentally-friendly model, via its adoption of a proof of stake consensus process, is also far more sustainable than some of its competitors. In an age when increasing numbers of investors and consumers are hugely concerned about the future of our planet, this commitment to the planet could also provide Cardano with an advantage.