The crypto market is constantly evolving and drawing the attention of investors and traders. It has had a great start to 2021, with Bitcoin at $34,608 on January 3 and Ether (ETH) soaring to trade at $1,153 on January 4. In the meantime, another cryptocurrency called Cardano has also risen to its highest levels which has got many investors wondering: will Cardano reach $10 or how high will it go?
If you are one of those investors who are on searching for Cardano price prediction or struggling to get an answer to the question ‘can Cardano reach $10 or $20?’ you are in the right place.
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What is Cardano?
Cardano is a third-generation blockchain solution, launched in September 2017. Created by Charles Hoskinson, Cardano is a technological platform that enables individuals and institutions to run financial applications all around the world. The platform is more than just a cryptocurrency. You can use it to send and receive digital funds and make direct transfers possible using cryptography.
The native currency that powers Cardano is ADA. This controversial cryptocurrency has set the barrier high for the coming year, and loyal HODLers are anticipating wild profits. According to recent reports, the Cardano Foundation declared its first step in the rollout of the Shelley testnet. After this rollout of the Shelley Testing Program, the members would be able to select from a detailed interface of available stake pools.
Cardano [ADA] Price Analysis
Keeping in mind the volatility of the market, predicting the cryptocurrency price is really more of a gamble than just a data-driven guesstimate. Cardano is among the very few projects that had an incredible start to the journey and entered the market quite successfully. The team behind the network was able to raise more than $63m during its ICO for the development of the project. Moreover, its native coin ADA also experienced significant growth and increased value after the launch. The coin gradually soared in value and hit a market cap of over $600m by the end of 2017.
In a nutshell, Cardano did not take long to get listed on a multitude of the top cryptocurrency exchanges. Within months, ADA skyrocketed over 142.4 percent, boosting its market cap to $3.5bn. In 2018, the trends in the crypto market lead to an all-time high of $1.162, resulting in the peak market cap of over $33bn.
In 2019, Cardano went through a lot. The first half of the year was very positive and resulted in a progressive price increase, however; the rest of the year was bearish for Cardano. The aftermath of the consolidation of 2019, drove Cardano into 2020 on a bearish note. But, a progressive price increase was again seen through February which declined by the end of March. The prices continued to drop until it reached $0.02.
Let’s consider some of the factors that go in line with the Cardano (ADA) price predictions by other market experts. It will give us a fairer idea, about the factors that affect the price of Cardano, after which we can present the realistic Cardano price prediction.
Factors Affecting the Price of Cardano
The question of whether Cardano will reach $10 is not a simple one to answer. There are a variety of different actors that are playing their part in Cardano price prediction. In order to make the most accurate Cardano price predictions, we will discuss in detail some of the factors that will make it easier to predict periods of growth or decline based on current cryptocurrency trends.
Supply and demand
The biggest umbrella factor that determines the Cardano price prediction is the relationship between its supply and demand. When the demand for a cryptocurrency exceeds the supply, it drives up the price. However, if the supply exceeds the demand, the price falls.
Demand for other cryptos
Cardano uses a dual-layer architecture that allows dApps and smart contracts to run on its CCL. Hence, the realistic Cardano price prediction not only depends on the demand for ADA but also affected by the demand for the other cryptos built on its distributed ledger. For this reason, it is safe to say that with the increasing demand for dApps, one could anticipate a positive impact on the price of ADA in the near future.
The price of Bitcoin
It may seem strange to know that the price of Bitcoin would have any effect on the price of other cryptocurrencies, but this is the case. According to many analysts, the changes in the price of Bitcoin results in correlative effects on the price of other altcoins. When Bitcoin undergoes changes in its trends particularly bullish runs, it boosts investor confidence to hold Bitcoin. This high BTC investor confidence often filters down to altcoins, resulting in widespread spikes in the market.
So, Will Cardano Reach $10?
Looking at the numbers and value of Bitcoin, it is highly unlikely for Cardano to reach $10. Though, owing to the incredible entry of Cardano in the market, reaching $1 is still in the realm of possibility because ADA already was on those highs with its all-time-high at $1.33. But, for Cardano to reach $10, it would mean it has to grow 125x in its value and attain a market cap of $262 billion.
Even if you assume that ADA/BTC price ratio stays the same, bitcoin needs to be priced at $650k with a market cap of $11.5 trillion to make ADA reach a value of $10. Looks like a far-fetched dream, doesn’t it?
Disclaimer: It must be noted here that these price predictions are solely based on our subjective knowledge of the market and assumptions derived from past events and the trends seen in the crypto markets. The purpose of the article is merely observatory and educational and in no way accurate enough to be taken for financial advice. Therefore, it is important to seek guidance before making any investment decisions.