The Cardano network has had an incredible performance this year. The price of ADA has multiplied by more than 17x. At the beginning of the year, Cardano’s price was still $ 0.17. On August 23, 2021, the ADA price reached its latest all-time high at just under $ 3.
But what potential does Cardano, the third largest cryptocurrency, have?
Why is the ADA price bullish in the long term?
Aside from the technical analysis, there are a few fundamental reasons why the demand for Cardano could increase in the future.
Cardano is a platform blockchain decentralized that is backed by a team of scientists who want to change the world with their project. Many processes can be optimized with so-called smart contracts, which are run by algorithms on the platform.
This includes, for example, the optimization of supply chains, production or networks. There are numerous uses for blockchain Cardano. Therefore, the demand for ADA could probably increase. The smart contracts will be released on September 12, 2021.
Could Cardano Dethrone Bitcoin?
Cardano is based on the mechanism Proof-of-Stake. When you finalize a transaction through a bank, that bank will act as a reviewer for the transaction. With the mechanism of Proof-of-Stake, the network takes over “the check.”
This is also the case for the mechanism Proof-of-Work used by Bitcoin and Ethereum. But nevertheless, the mechanism Proof-of-Work uses costly and environmentally damaging mining to validate transactions.
Cost advantage and environmental friendliness are two of the main reasons why investors could choose Cardano instead of Bitcoin or Ethereum, especially if the switch to POW on Ethereum doesn’t go smoothly.
Could Cardano go as high as $ 100?
If the market capitalization of an asset increases, then the price of the asset generally increases dramatically as well.. This is because more money flows into the respective asset and demand increases.
Suppose Cardano really becomes one of the world’s most valuable assets and how Facebook helps shape our daily lives. Also, suppose that the price is proportional to the market capitalization.
Facebook’s market capitalization is currently $ 1 trillion, roughly 12 times higher than Cardano’s ($ 86 billion).
The ADA price is almost 2.83 dollars at the time of publication. Consequently, Cardano’s rate could rise to more than US $ 30 in the long term. Even Assuming $ 1 or $ 2, the ADA price would still be above $ 10 or $ 20, respectively.
Interestingly, Bitcoin is currently the 9th most valuable asset in the world and its market capitalization is only slightly lower than that of Facebook. If Cardano dethrons Bitcoin, the ADA price will likely be in the double digits.
At first glance, $ 100 seems unrealistic. But nevertheless, given inflation rates in the United States, that might be possible.
The Fed created about a third of all existing dollars in 2020. If this trend continues, the price of ADA will also increase dramatically in the coming years due to inflation, as the ADA quantity is limited to 45,000,000,000 tokens.
So $ 100 is relatively unrealistic, but it is actually possible. But nevertheless, In the long term, Cardano’s course could be in the double digits if the project prevailed.
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Can Cardano (ADA) go as high as $ 100? – BeInCrypto