Cardano (ADA) has gained significant gains over the past few years, reaching an all-time high of $3.09 in 2021. The price surge was largely due to the launch of smart contracts and the Alonzo upgrade which helped ADA to increase its trading price, giving profits to the investors. While Cardano (ADA) runs on an Ethereum Blockchain, it is often called the ‘Ethereum Killer’ for its scalability, sustainability, and decentralized approach. If you are someone looking to expand your portfolio you can consider Cardano as an option, especially due to its Proof-of-Stake consensus mechanism, growing ecosystem, and real-world applications. It is known to deliver long-term growth, making it a good option for new and experienced investors alike. Even if you haven’t made your initial investment in Cardano, you can still consider 2024, without any regrets.
What is Cardano (ADA)?
Cardano is a third-generation blockchain platform that was launched in 2017. Cardano is considered an attempt to improve the drawbacks of Bitcoin and Ethereum. It is accepted for its scalability, flexibility, and development with technological advancements like Smart Contracts, and decentralized apps. It works by using Ouroboros, a proof-of-stake consensus mechanism, which is known for its sustainability and energy efficiency as validators stake their own Cardano Tokens. The token is compatible with Ethereum-based smart contracts. Similar to ETH and the Ethereum Blockchain, ADA is the native cryptocurrency of Cardano Blockchain. It runs on two separate layers, the Cardano Computing Layer (CCL) and the Cardano Settlement Layer (CSL).
Key Features of Cardano
The following are the key features of Cardano (ADA);
- Ouboros
Cardano works on a proof-of-stake consensus mechanism for transactions. This reduces the energy consumption by allowing
users to stake their coins.
- Layer 1 Blockchain
Layer 1 blockchain permits its users to build apps and smart contracts to improve scalability and interoperability without the need for multiple blockchains.
- Smart Contracts
It was introduced to the Cardano Blockchain in 2021 through the Alonzo upgrade. The self-executing contracts enabled the automatic executing contracts to open up various applications in the Defi ecosystem.
- Decentralized Finance
Cardano supported several decentralized applications to interact and engage in activities such as lending, trading, and insurance. This allows the users to gain more autonomy in financial exchanges.
- Governance
While the coins are staked by the users, users can participate in the decision-making process and policy changes. It also allows seamless interaction and data exchange across multiple platforms.
Advantages of Investing in ADA
Cardano (ADA) with its properties like scalability, real-world applications, and long-term growth, makes the performance user-friendly and attracts several investors. With the expansion of blockchain technology into different sectors, Cardano stands out as an asset offering investment opportunities, especially for long-term investors.
- Cardano focuses on real-world use and global partnerships in the growing market as an attempt to solve challenges faced in various sectors like Education, Financial institutions, and Supply chains. Recently, Cardano has partnered with the African government to create blockchain-based identity systems for students and decentralized financial institutions as part of their financial inclusion initiative. They have also extended their service to the supply chain, allowing users to track goods and services with transparency.
- Cardano is a peer-reviewed approach to not compromise the security, reliability, and scalability of the network. This significantly reduces the risk of bugs and vulnerability issues. This gives long-term assurance to investors regarding the stability of the network.
- Cardano uses a Hydra Layer 2 scaling solution to increase the scalability of the network. This allows the network to process transactions up to 1 million Transactions Per Second (TPS). Moreover, it offers quick transactions at very low fees, making it a good option for gaming, finance, and supply chain management.
- With the Alonzo upgrade in 2021, smart contacts have been integrated to build decentralized applications. Even though smart contracts were initially launched in the Ethereum network, Cardano with its low transaction fee and scalability has attracted more investors.
Price Predictions for 2025
According to the research of market experts, Cardano is expected to rise by 23.41% and reach $1.32 by January 16, 2025, which is nearly 22.7% more than its current price. It will have a steady price increase till September to reach a value, a new all-time high of $4.05 in a bullish market. ADA could trade for 403.14% in August, which is the currently anticipated bullish month. By 2029, it is expected to increase by 639.15% gain from the current value, reaching $8.19. Long-term predictions suggest a bullish trend
Conclusion
While the crypto market is known for its volatility, Cardano, with its research-oriented and innovative approaches offers several benefits to its investors. It uses a Proof-of-work consensus mechanism, which significantly reduces energy consumption by offering more sustainability. Integration of smart contracts and decentralized finance offers a more scalable and cost-effective platform for developers. Experts predict that Cardano will offer high returns in 2025. Those looking to invest in Cardano can consider December and early 2025.
However, the cryptocurrency market is subject to volatility. Investors should perform individual research on the market, price fluctuations, and regulatory policies before investing to prevent any financial losses.