While there are over 10,000 digital currencies currently in existence in the world today, not too many cryptocurrencies have a promising future like Cardano.
Developers of the popular cryptocurrency project have been working behind the scenes to ensure the network has an unmatched level of security, efficient transactions, fast and low-cost transactions, among other things.
ADA Unfavorable Price Movement
The current value of Cardano (ADA) may not be reflecting the volume of work being put toward the growth of the project.
It is not shocking that several investors may not seem happy with the performance of ADA as the cryptocurrency, instead growing significantly after the Alonzo hardfork, has fallen drastically.
ADA was trading around $1.3 on January 1, 2022. Unfortunately, the coin has suffered major setbacks that have rocked the crypto space, which has seen ADA lose a total of 35.5% on year-to-date (YTD), thus putting the cryptocurrency in the as the ninth-largest cryptocurrency in the global digital currency rankings.
5 Reasons Cardano is Expected to Surge
Regardless of the unfavorable price movements of ADA, the cryptocurrency is expected to have a sensational performance this year due to the consistent development being carried out on the blockchain.
Dan Gambardello, CEO of Crypto Capital Ventures (CCV), called Cardano a sleeping giant that is waiting to explode. Similarly, a group of fintech panelists predicted that ADA prices will reach $58.04 by 2030.
While this may seem far from happening based on the current price of Cardano, a closer look at the consistent development being conducted on the network, one would note that this feat can be achieved in the short term.
Total Value Locked (TVL)
Recall that after the Alonzo upgrade, smart contract functionality was enabled on Cardano, a move that prompted the launch of decentralized exchanges (DEXs) on the blockchain. After the launch of a handful of DEXs, Cardano enthusiasts have shown significant interest in the network leading to an increase in the total value locked (TVL). At press time, the TVL on Cardano is currently sitting around $173.92 million, with the volume expected to surge when more DEX go live on the blockchain.
Growing Number of dApps Under Development
Despite the support of smart contract functionality, there are only a handful of decentralized applications on Cardano. However, the number of dApps is set to improve in the coming months as over 60 decentralized applications, which include more than 20 DEXs are currently under development and will soon be launched very soon. When these applications finally launch, the TVL, as well as the price, will surge massively in the coming days.
Over the years, the Cardano team has developed a network to handle a total of 250 transactions per second (TPS). Unsatisfied by the numbers, the team is planning to expand its TPS capability to reach a whopping 1,000,000, which will be ushered in by the Hydra upgrade that is slated to be launched later this year.
Increased Adoption of ADA
With traders setting their sights on the imminent growth of Cardano, both retail and institutional traders have embarked on an accumulation spree of ADA. Several reports have emerged showing widespread adoption of traders, especially during slight corrections. The adoption spree suggests that investors are still confident that ADA prices will rally in the coming weeks.
No Downtime in Over 4 Years
Rival networks such as Ethereum and Solana have been on the receiving end of major network congestion that has resulted in the blockchains experiencing downtime. The unfortunate development has never seemed to be the case for Cardano, which has continued to function at full capacity for more than 1,500 days despite the number of activities being conducted on the network.
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