Cardano is a peer-reviewed decentralized platform based on blockchain. Its native currency launched in 2017 is traded as ADA. The platform was developed by Charles Hoskinson, who also co-founded Ethereum alongside Vitalik Buterin and six others.
The platform was named after Gerolamo Cardano, an Italian polymath who lived in the 16th century and specialized in science, mathematics, and philosophy. His work in the mathematics field made him one of the most influential mathematicians of the Renaissance era.
The Cardano token, on the other hand, gets its name from Augusta Ada King, who was an English mathematician and writer. Ada is often credited with realizing the full potential of computers beyond pure calculation.
Most people often use Cardano to refer to the native token ADA as they think the two are the same. On the contrary, they are not. Cardano is the blockchain, and ADA is the coin.
Cardano was the first platform to incorporate a peer-reviewed research strategy in its ecosystem. The Cardano crypto (ADA) is designed to help users participate in the development of the network. ADA holders can vote on any proposed changes to the software. Cardano is considered a third-generation public blockchain platform.
First-generation cryptocurrencies are those that initiated and set forth the decentralized payment/transaction system. The second-generation cryptos entered the market with a goal of decentralized applications and smart contracts. Third-generation cryptocurrencies are meant to improve on the downsides of the two previous generations.
In this regard, Bitcoin is referred to as a first-gen and Ether, a second-gen cryptocurrency. Third gen cryptocurrencies like ADA are advanced in terms of scalability, security, and sustainability. Cardano says its goal is to enable changemakers, innovators, and visionaries to spawn constructive, positive global change.
ADA’s total supply is capped at 45 billion coins. As of writing, about 31 billion of these are in circulation. Five public sales of ADA were carried out before January 2017. About 2.5 billion ADA coins were allocated to IOHK when the platform launched. Another 2.1 billion were allotted to Emurgo – a blockchain tech firm that helped found the Cardano protocol.
648 million tokens were apportioned to the Cardano Foundation – a non-profit entity dedicated to promoting and improving Cardano’s adoption. 16% of ADA’s total supply was awarded to the project’s founding members, and the remaining was dispensed to the investors.
Cardano (ADA) Price History
The Cardano project began in 2015 – two years before Cardano was officially launched. The project was being run by Input-Output Hong Kong (IOHK) under the leadership of Charles Hoskinson. Hoskinson had just left Ethereum the previous over of a boardroom brawl. Rather than borrowing and improving the codes of other blockchains that existed before then, Charles sought to build a new blockchain.
The Cardano (ADA) coin has a brief price history. This is because, after conception, Cardano didn’t move to the promotion stage. Instead, its developers worked on it for about two years before releasing it to the public. Its official launch for trading was in October 20.
Historical course development
Following its release, Cardano became very popular, and ADA got listed in several leading crypto exchanges within the first month of its launch.
ADA coin price was 0.019 EUR in November after it was made available to the public. Its price rose steadily, and in December, it was trading at 0.11 EUR. It stayed the course, and at the end of the year, the coin posted an all-time high of 0.56 EUR – a 2,800% increase in seven weeks.
Its market capitalization increased significantly during this period. During the first quarter of 2018, ADA saw a price crash, as did many other cryptos. It hit a low of 0.119 at the end of the quarter and started climbing in the second quarter.
It then peaked at 0.3 EUR early in May before going on a slump. By the end of June, it had fallen to 0.1 EUR. This was followed by a fleeting gain in July and another dip that lasted the rest of the year. In December, the Cardano cryptocurrency had hit 0.025 EUR.
ADA’s price during the first quarter of 2019 remained between 0.03 EUR and 0.04 EUR. In April, it managed to hit 0.07 EUR before dropping to 0.056 in May and then recovering to 0.07 EUR in June.
ADA’s price gradually fell from 0.05 EUR to 0.035 EUR during the third quarter. In the last quarter, the price remained sluggish at the 0.03 EUR mark. At the start of 2020, the coin was trading at the same level.
It’s price then jumped to 0.05 EUR in the second and third week of February before dropping to 0.025 in March. ADA slowly recovered in the second and half of the third quarter peaking at around 0.1 EUR in August. The coin’s price dropped briefly at the start of September to 0.07 EUR before picking momentum as the month came to an end.
It has since traded between 0.8 EUR and 0.9 EUR. Ada has a current market cap of 2.8+ billion EUR, making it the 9th largest cryptocurrency.
Cardano coin price prediction
The Cardano coin has struggled to reach or come close to its all-time high set about three years ago. However, one can’t rule out an upward momentum that would steer it to a new high in the future.
Based on Cardano’s technological progress and past trends there is a possibility that the coin will reach $1 very soon. If the coin’s adoption rate increase and other market factors support it, ADA may climb to $5 but that is still a long shot.
Factors that influence Cardano valuation
Cardano’s current adoption is low compared to other smart contract platforms like Ethereum. That said, it has the potential to grow as several institutions both in the finance and academic sectors back it. Some of the major factors affecting the price of ADA are:
- The number and value of partnerships
- Changes in the DeFi sector
- Evolution of its network
- Adoption rate
- The level of competition from other platforms like NEO and EOS
- Regulations within the crypto space
The Cardano platform and its ADA coin complement and depend on each other. The coin contributes to the overall development in terms of adoption, whereas the platform oils real usage wheels.
Is the Cardano coin a good investment?
It is hard to conclusively say that ADA is a good investment (or a bad one, for that matter). There are several factors that make it a good investment and a couple more that make it a bad investment.
Here are the factors that can make Cardano a promising investment:
- A dedicated and credible team leads it
- It offers several technological improvements
- Cardano had achieved scalability without compromising its security
- It has its own wallet called Daedalus
Although the factors above make Cardano a good investment, a few others might work against it. These are:
- No proven track record
- It is not fully developed like other cryptos
- Cardano may not perform well due to the stiff competition in its sector
Only you can individually decide if it’s a good investment based on your investment preferences and trends from the cardano price chart.
What makes Cardano unique?
While its native coin may not be one of the best performing cryptos, Cardano is one of the most prominent blockchains to employ a proof-of-stake consensus mechanism successfully. This mechanism is less energy-intensive and arguably effective than the proof-of-work algorithm adopted by Bitcoin.
The proof-of-stake protocol securing Cardano is called Ouroboros. This environmentally sustainable protocol builds on Bitcoin’s proof-of-work consensus mechanism without using up too much power. Ouroboros uses randomly chosen leaders to approve blocks, and the node that adds the next block earns a reward.
Ethereum is currently on the path of upgrading to Ethereum 2.0 that makes use of the proof-of-stake mechanism. On account of being peer-reviewed, Cardano’s technologies are passed through a validation process where users can contribute.
The Cardano team proclaims that this helps the blockchain to remain durable and stable. Around July 2020, Cardano conducted a Shelley transformation intended to make the platform “50 to 100 times more decentralized” than other blockchains.
Cardano could only handle a maximum of ten transactions per second in its early days. In March 2020, Hoskinson published a paper detailing a Layer 2 scaling solution called Hydra that would allow the platform to process over one million transactions per second.
Relationship between Cardano and other cryptocurrencies
Ethereum is the most prominent smart contract platform. Its coin Ether is the second-largest cryptocurrency by market cap. Cardano’s founder was among the co-founders of Ethereum before he left because of differences in goals. Cardano has often been considered as the ‘Ethereum killer.’ This is because the platform aims to improve on the shortcomings present in Ethereum.
NEO is a fast open-source dapp blockchain platform launched in 2014 by Da HongFei and Erik Zhang. It is dubbed “China’s Ethereum.” NEO uses a decentralized Byzantium Fault Tolerant consensus mechanism. It has a total supply of 100 million NEO coins.
EOS is a smart contract blockchain that was launched in 2017 by Daniel Larimer and Brendan Blumer. It uses a delegated proof-of-stake consensus mechanism. EOS.IO’s network is one of the fastest, cheapest, and most scalable in the blockchain sector. Its native offering EOS has no specific, definite maximum supply. Instead, the DPoS model uses an inflation structure capped at 5% yearly.
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