Cardano (ADA) is the cryptocurrency that arguably has the most enthusiastic fanbase in the crypto market. Many fans believe that Cardano can replace Ethereum at the top in the future and become the number 1 smart contract platform. But is Cardano really this blockchain that can take the lead in the next few years or is it just hyped by its large fan base? And most importantly, why is Cardano price down?
What is Cardano (ADA)?
Cardano (ADA) is a blockchain protocol that has set itself the task of combining the areas of security, scalability and decentralization. Cardano uses the modern and efficient Proof-of-Stake consensus mechanism. Cardano’s network token is referred to as ADA.
What is special about Cardano (ADA) is the fact that Cardano’s blockchain is being further developed according to scientific standards. This further development uses evidence-based methods and takes place in several development phases. The goal of Cardano is not a fast, but a qualitative and sustainable further development.
The price of the ADA token has risen sharply in recent years, especially in bull markets. The token was launched in 2017 and saw strong gains at the end of the year. In 2021, smart contracts were finally introduced at Cardano, which completed the Goguen development phase and caused a price increase.
Why is Cardano price DOWN in 2022?
ADA price has seen a sharp drop due to the onset of the bear market. In September 2021, ADA was still able to reach its all-time high of over 3 dollars. After that, we saw a drop in price, which intensified in November with the onset of the start of the crypto bear market.
At the turn of the year, the ADA rate had already fallen to just $1.37. The losses continued in January before the price was able to recover in the following months. After that, we saw heavier losses again in May and June. In the months that followed, the ADA course was able to stabilize. Now, in mid-October, we saw a slight drop again, taking the price to its 2022 low of $0.35.
Why is Cardano popular?
Cardano has an extremely enthusiastic community that strongly believes that Cardano can become the #1 smart contract platform in the future. Furthermore, the price of the ADA token should explode. This hope is shared by many small investors. Articles and videos about Cardano continue to attract crowds of cryptocurrency fans, and the community praises the cryptocurrency excessively.
But what makes Cardano so popular with many small investors and why do many crypto enthusiasts see Cardano as the cryptocurrency of the future?
Cardano takes an approach to its blockchain that few other projects follow. The improvements of the blockchain and the general further development are worked out in cooperation with scientists. In addition, development is not designed to satisfy investors and achieve quick results, but to develop the blockchain in a sustainable and long-term manner. This approach is winning over a large group of crypto enthusiasts.
Why might Cardano Fail in the Future?
Cardano (ADA) has come under criticism in recent months and years, mainly due to the slow pace of development. Blockchains that have a commercial approach often achieve faster results than the Cardano Blockchain when it comes to further development. Other networks like Solana and Avalanche saw massive hype in 2021 for being able to boast extremely fast transaction speeds. The established Cardano has not been able to offer these speeds so far.
Furthermore, it took a relatively long time before Cardano was able to fully offer Smart Contracts. While Ethereum has been able to expand its ecosystem with smart contracts for years, Cardano (ADA) only introduced it in the second half of 2021. This gives Ethereum a huge lead in dApps compared to Cardano.
There are always delays in the development of any type of tech. The Vasil update should be implemented at Cardano at the beginning of the third quarter. Ultimately, however, the implementation did not take place until mid-September. The diligence in further development is repeatedly criticized as being slow.
Can Cardano (ADA) actually be an Ethereum killer?
The term “Ethereum killer” basically arose in connection with the Cardano project. Due to its advantages in many areas compared to the Ethereum blockchain, Cardano (ADA) has been able to earn this name in recent years. It is important to mention that Ethereum was struggling with major problems at the time: high gas fees, low transaction speeds, security concerns.
With the Ethereum Merge, Ethereum has taken an important step toward fixing its still-existing problems. This could massively increase the lead of the Ethereum network over other networks. Cardano needs to do an excellent job here over the next few months and years to outperform Ethereum.
The next phase of development could be crucial. With the Vasil update, the basho development phase has begun. The transaction speed and scalability in the Cardano network should increase massively. There is talk of 100,000 transactions per second. This move could mean that Cardano can actually be so much more efficient than Ethereum that more and more developers are switching to Cardano.
What will happen at Cardano in the next few months?
With the Vasil update, the basho development phase has basically started. The scalability of Cardano should be massively increased. Of all the development phases, this could be the most important, since the end result would be that the Cardano blockchain would actually be superior to all other blockchains.
Basho is expected to come to a conclusion as early as next year. This would also come at a time when the bear market could slowly transition back to a bull market. If Cardano could actually be the fastest blockchain in the next few months, this would give the network and also the ADA token a massive boost.
Should you invest in Cardano’s ADA token?
At the moment it is still a matter of faith whether Cardano can actually replace Ethereum in the future. So far, Cardano has always been able to keep its promises, although implementation often took a long time. There is a possibility that Cardano could actually massively increase its scalability by the next bull market.
If you believe in Cardano, you should consider investing in the ADA token regularly. Because right now in the bull market, the ADA price is extremely low if it should rise sharply in the future. The risk is relatively high, but the possible gain is massive.
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