The Rise of Cardano. Will it Continue Growing?
Cardano is growing in popularity. Why?
The turmoil of market fluctuations in May had affected every cryptocurrency. Bitcoin prices started plummeting with Etherum following its trail. However, did you know Cardano was standing strong against the turmoil? On May 13th, Cardano reached a high of US$2.10 whereas the front runners – Bitcoin and Ether dropped down to US$46,800 and US$3500 respectively. Overall, since 2019, Cardano is up over 1,700%.
What is Cardano?
Simply talking about Cardano, it is a cryptocurrency that intends to solve the scalability and sustainability challenges faced by dominants Bitcoin and Ethereum. Technically speaking, Cardano cryptocurrency is a third-generation blockchain platform with a unique decentralized network built on scientific, academic research, created by cybersecurity and engineering experts. It is an open-source network that builds decentralized apps and systems.
After Elon’s tweet of not accepting Bitcoin for Tesla due to Bitcoin’s mining activities creating a lot of waste, everyone started realizing the inefficiency of Bitcoin. Hence, investors are starting to invest in coins that are sustainable as currently, the crypto market runs on what Elon Musk says. That’s when Cardano broke its silence.
Cardano is a “Green Coin” that is environmentally friendly. Mining Cardano is more efficient than other cryptocurrencies, thanks to its underlying architecture. It is made up of 2 layers. The Cardano settlement layer (CSL) is a unit of account, enabling users to trade ADA instantly at very low transaction costs. The Control Layer is made up of protocols with different functionalities such as empowering identity recognition, ensuring security, operating smart contracts, etc.
This green feature of Cardano has the potential to outperform other cryptocurrencies in the coming years as the market is whining over the sustainability issues of cryptos. While there are other green coins as well in the market, the Cardano coin will receive more adoption as it is the biggest and most popular amongst them.
Further, in February 2021, the Cardano development team declared that it will be rolling out an update soon, which would enable users to prove ownership via Non-Fungible Tokens. It will also empower users to foster traditional-currency-pegged stable coins as it has assisted in helping the public blockchain increase in popularity.
Experts suggest that Cardano will be able to take over Ethereum because of its proof of stake (PoS) method. Etherum too is shifting to PoS, but it is still nascent. Many companies are also shifting to Cardano from Ethereum as they are inclined towards Cardano’s green and sustainable goal.
Will it Continue Growing?
The benefits of Cardano are attractive and luring investors to invest in it. However, it is still a new coin. It is a six-year-old cryptocurrency that has witnessed slow and steady growth. While the crypto market is supporting eco-friendliness and promoting related cryptocurrencies, we are not quite sure for how long this eco-friendly bubble will exist. Since the market is weak enough to run on tweets, one tweet can make or break Cardano.
If we compare Cardano to Bitcoin and Ether, Cardano is still quite young. So, it is not capable enough to take over Bitcoin and Ether anytime soon. According to Charles Hoskinson, Ethereum’s Co-founder, Cardano won’t achieve its vision until at least 2025.
Cardano can be one of your investment options as it is a promising and well-performing cryptocurrency. But, if you are thinking of putting all your eggs in one basket, you might want to consider investing all of your funds in Cardano.
The current price of Cardano today is US$1.54 with a 24-hour trading volume of US$2,082,537,084. It is the fifth-largest cryptocurrency with a market cap of US$49,311,539,022.
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