After several difficult weeks, Cardano’s ADA token has again recorded strong price gains in the last few days. The year 2022 starts extremely promising for the cryptocurrency. The new basho update could push Cardano to new heights in 2022. Now that prices passed the $1.5 level mark, where will ADA prices go? Will they continue upwards all the way to $2 or retrace in the short term? Let’s tackle everything in this ADA price prediction article.
What is Cardano ADA?
Cardano is a delegated Proof of Stake blockchain (dPoS), that supports smart contracts similar to Ethereum. The marketing of this project propagates a scientific approach. The development under Charles Hoskinson is rather slow, with multiple deadlines already pushed forward. With the launch of the staking-mainnet in mid-2020 and the Alonzo update, Cardano was finally able to accomplish an important milestone.
ADA Price Shoots 30% in the past Week!
Many altcoins have made huge gains in the last 7 days. Among those big gainers is Cardano’s ADA token, which at the time of writing is up by more than 30% in the past 7 days, rising to $1.53. This is the first major correction to the upside for the ADA token after the price has steadily declined over the past few weeks.
In September 2021, the price of the ADA token was still over 3 dollars. At that time, Cardano introduced smart contract functions for the first time, which opened the way to decentralized applications for the network. The big Bitcoin correction caused the ADA price to fall more and more and, like other cryptocurrencies, lost massively in value.
What is Cardano Basho update?
The development of Cardano takes place in several development steps. For this purpose, the Foundation has designed a road map in which the development is presented in a way that is comprehensible for everyone. At the moment, phase 4 of the development of the platform begins: Basho. In 2021, Goguen phase 3 came into effect and established smart contracts.
Basho aims to advance the scalability of Cardano. This is becoming increasingly important as other blockchains such as Solana and Avalanche have made serious strides in these areas. With Basho, Cardano now wants to compete with these extremely fast networks and also score points with decentralized projects thanks to its existing technical excellence.
Cardano Basho Details
The new Basho update is the event that all ADA hodlers are looking forward to. It promises further scalability enhancements and optimization. The roadmap indicates that this upgrade will happen somewhere in 2022, but nothing is clear as to when exactly. Speculators are suggesting that the Cardano Basho upgrade will happen somewhere in Q2 or Q3 of 2022. The specifics of the update are as follows:
- Larger block size with the ability to process more transactions at once
- Lower block propagation time
- Prepared blocks with a more even spread
- New CPU parameters – less memory required
- More effective UTXOs – this reduces the memory load for the blocks
These announcements probably had a positive impact on the Cardano price. With Basho, the network is poised for a successful 2022.
ADA Price Prediction – Can ADA reach $2 Soon?
Looking at the current performance of the ADA token, one cannot but acknowledge the excitement from the community around this project. In addition to the tech enthusiasts that are looking forward to the new developments, investors who previously lost from the recent crypto crash also jumped on the Cardano train and purchased ADA in the hopes of recouping some of their lost profits.
After ADA reached the strong buy zone which was around $1.1, prices shot upwards toward the current price of $1.5. Today, ADA is clearly eyeing its previous psychological price of $2. In figure 1, we can see how the downtrend was distinctly broken, and a new uptrend is emerging.
