Cardano could rally multiple times from its current market valuation if Ethereum reaches an unprecedented price of $20,000.
Cardano currently trades at $0.82, recovering slightly from yesterday’s dip. Despite the rebound, ADA is down 5% and 9% over the past seven days and 30 days and remains one of the few assets with a negative year-to-date performance in the top 10 cryptocurrencies by market cap.
Nonetheless, bullish sentiments remain high among market analysts. With emerging institutional use cases, a broader positive market outlook, and ecosystem developments, many expect Cardano to reverse its current bearish state and target much higher prices.
As a result, we recently analyzed the possible price target for Cardano if Ethereum, being the leader of the altcoin sector, reaches $20,000.
Ethereum to $20,000 Projections
Notably, Ethereum has been one of the standout cryptocurrencies since July. After a period of price underperformance earlier in the year, the leading altcoin by market cap has regained bullish momentum, rallying from around $2,500 to $4,950 in August before the current consolidation.
Meanwhile, many suggest that Ethereum could see far higher prices. Fundstrat Capital CIO Tom Lee is one of the top industry leaders who shares the sentiment, predicting that Ether could reach $15,000 this year and rally to as high as $60,000 in a few years.
Moreover, analyst Ted shared on X on September 21 that Ethereum will peak between $18,000 and $20,000 during this cycle. He based this projection on Ether catching up with the global M2 supply amid trend correlation.
The Price of Cardano if Ethereum Reaches $20,000
To buttress the full effect of an Ethereum rally to $20,000 on Cardano, we employed analysis from OpenAI’s ChatGPT. The chatbot presented several analogies to this event, presenting both bullish, moderate, and bearish cases.
For context, Ethereum is currently trading at $4,200, with a market capitalization of $508 billion. As a result, a rally to $20,000 will culminate in a 4.76x increase, taking its market cap to $2.42 trillion.
Applying that directly to Cardano, assuming it rises proportionally to Ethereum, would see ADA reach a new all-time high of $3.90. However, ChatGPT noted that the market dynamics make such an ideal correlation largely unrealistic. As a result, it shared a more realistic target under different market conditions.
In a bearish case, Cardano would rally 2x as Ethereum hits $20,000, reaching a price of $1.64. In a moderate case, it would increase fourfold, taking its price to $3.28. However, a bullish and extremely bullish case will see ADA outperform Ether with a 6.8x and 10.2x uptick. This culminates in prices of $5.58 and $8.36, respectively.
Gemini Predicts Cardano Price if Ethereum Reaches $20,000
Meanwhile, Google’s Gemini AI had a different approach to predicting the price of Cardano if Ethereum reaches $20,000. The first scenario is if the ADA/ETH ratio remains constant.
For context, at the current price, Cardano has a ratio of 0.0001958 ADA per ETH. If this continues and Ether reaches $20,000, ADA will attain a new price of $3.916.
Furthermore, it presented another approach, which is the market cap correlation. Ethereum has a market cap of $508 billion, and Cardano is at $29.5 billion, meaning that ADA accounts for approximately 5.8% of ETH’s valuation.
If this correlation persists, Cardano will reach a market cap of $140.7 billion when Ether hits $2.24 trillion, following its hypothetical rally to $20,000. Dividing by its circulating supply of 35.97 billion, this would result in a price of $3.91.
Nonetheless, Gemini noted that the market cap correlation is more likely to shift during market rallies. Hence, the bot painted a picture where Cardano records explosive growth, similar to past cycles, to outperform Ethereum.
The scenario is that Cardano’s market cap would grow to 10% of Ethereum’s projected $2.42 trillion. The adjusted correlation takes ADA’s market cap to $242.7 billion, and its new price to $6.75.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
