5 Reasons Cardano (ADA) Will Surge This Year.
Like several cryptocurrencies, Cardano (ADA) has not had the best start to the year, as several events have caused the coin to shred a significant percentage of its value.
ADA, which began trading around $1.3 this year, has lost nearly 35% of its value on year-to-date (YTD).
It is worth noting that ADA, which recorded an all-time high (ATH) of $3.09 in September 2021 has crashed by 72.4% ever since, thus causing backlash from several of its supporters.
Several enthusiasts believe that the delay in releasing significant upgrades for the project is one of the reasons the cryptocurrency has suffered huge losses since it reached its ATH.
Despite widespread scrutiny of Cardano, the cryptocurrency has been tipped to become one of the best performing digital currencies this year. According to Dan Garbadello, founder of Crypto Capital Ventures (CCV), ADA is like a sleeping giant that will definitely surge tremendously.
Aside from Gambardello’s comments, here are six reasons why we think Cardano ADA will be your best buy this year.
Relatively Cheap
Comparing the current price of ADA and its value when it peaked, you would see that the coin has dipped over 70% ever since. That’s due to high expectations surrounding the cryptocurrency when the team announced the launch of the Alonzo hard fork, which was designed to usher in smart contracts. Many enthusiasts expected decentralized applications (dApps) to start launching on the network moments after smart contract functionality was enabled.
However, it did not happen that way, prompting a lot of supporters to abandon the project. Interestingly, decentralized exchanges (DEXs) have started launching on the blockchain, which began with SundaeSwap. As the coin’s value is still relatively low and as dApps are gradually going live on Cardano, it is advisable to own a portion of ADA and enjoy the imminent rally that is to come from the influx of various dApps.
Maximum Security
Cardano has been under scrutiny for slowly releasing upgrades, which many believe has contributed negatively to the price. According to one of the team members, Cardano is always careful when releasing upgrades as it does not want to jeopardize its security.
Cardano’s method of development is dubbed “measure twice cut once approach,” which requires that all changes to the blockchain are carefully evaluated before going live. This style of upgrade could see an influx of institutional investors to the project in the near future.
Improved Scaling Solution
The Cardano team is planning to introduce hydra scaling solutions to improve scalability on the network. With the deployment of Hydra Scaling Solution, Cardano transactions can be conducted off-chain, thus boosting the network’s speed by a large margin while reducing transaction cost.
According to Cardano, the deployment of Hydra will boost transaction speed to at least one million per second.
Easy Staking
Being a proof-of-stakes (PoS) network, Cardano allows users to stake their ADA coins for a reward of 5% APY after approximately 15 days. Cardano staking does not have a mandatory lock up period and as such, users can conveniently move their tokens to and fro with ease. To partake in the Cardano staking initiative, users can transfer their funds from an exchange to their Cardano wallet, and delegate the amount they want to stake via the wallet’s interface.
Tokenomics
The type of tokenomics a cryptocurrency adopts would go a long way to determining its value in the long run. To be fair, Cardano has one of the best tokenomics in the cryptocurrency market.
It is worth noting that there are a total of 45 billion Cardano and so far, only about 75% have been minted. The majority of the cryptocurrency’s total supply is held in a secured reserve, which would see its value increase in the short term.
Interestingly, as a result of ADA’s efficient tokenomics, the cryptocurrency’s inflation rate has been on a yearly decrease compared to the U.S. Dollar (USD).
Conclusion
The aforementioned factors are among the reasons why Cardano ADA will surge tremendously this year. According to a group of Finder’s fintech specialists, ADA price is expected to surge to $2.79 by year end and subsequently skyrocket to $58.04 by 2030.
With all these favorable predictions for ADA, it is advisable that you take advantage of its low price and prepare for an imminent rally.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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