On Tuesday, Cardano (ADA) found itself in the spotlight as its market capitalization ranking fluctuated, temporarily falling out of the top 10 cryptocurrencies. This development was quickly overshadowed by Toncoin’s surge, fueled by rumors of a potential partnership with Tether.
However, at the time of writing, Cardano has regained its position in the top 10, boasting a market cap of $20 billion, closely trailed by Avalanche (AVAX) with a $17 billion market cap. Amidst these fluctuations, concerns and speculations about Cardano’s viability have surfaced, prompting a closer examination of the project’s technological prowess and future prospects.
What you'll learn 👉
Is Cardano Dead Following Drop from Top 10 Cryptos?
One of the most vocal proponents of Cardano, Deezy.eth, has addressed the growing fear, uncertainty, and doubt (FUD) surrounding the project in the wake of its temporary demotion from the top 10 cryptocurrencies. Deezy.eth firmly rebuts the notion that Cardano’s technology is lacking, stating emphatically, “FALSE! (unless you ask an ETH maxi).”
To counter the FUD, Deezy.eth highlights several key factoids that underscore Cardano’s resilience and innovation:
- Never failed in 2,300+ days of operation
- Boasts an on-chain sovereign wealth fund
- The upcoming Chang hard-fork will enable on-chain governance
- Consistently leads decentralization indexes
Furthermore, Deezy.eth cites Charles Hoskinson, the founder of Cardano’s development company IOHK, who described the forthcoming Ouroboros upgrade as “the biggest step forward towards solving the blockchain trilemma ever” (emphasis added). This bold statement underscores Cardano’s ambition to tackle the long-standing challenge of achieving scalability, security, and decentralization simultaneously.
Doge2014 raises 450K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Can ADA Hit $3 All-Time High Again?
While the technological advancements and resilience of Cardano are undoubtedly impressive, many investors are primarily concerned with the project’s potential for price appreciation. Addressing this concern, Deezy.eth delves into technical analysis and historical market cycles to assess the likelihood of ADA regaining and surpassing its previous all-time high of $3.
According to Deezy.eth’s analysis, a recent bullish signal has emerged on ADA’s 5-day chart, with money flow entering green territory. Historically, reversing money flow on larger timeframes has proven more challenging, raising hopes that this positive momentum may be sustained.
To gauge a potential price target, Deezy.eth examines past market cycles. From the 2018 peak to the 2021 peak, ADA experienced a 2.3x gain. Looking ahead to the 2025 peak, Deezy.eth anticipates a slightly diminished gain of 1.9-2.1x, accounting for the market’s maturation and potential cooling of speculative frenzy. Based on this analysis, Deezy.eth projects a target of around $6 per ADA token by the 2025 peak.
Addressing Transaction Throughput Concerns
One of the common criticisms leveled against Cardano is its perceived lack of adoption and low transaction throughput. However, Deezy.eth argues that this perception stems from a misunderstanding of Cardano’s unique transaction model. Cardano employs a concept called “transactions within transactions,” which allows for greater efficiency and scalability, albeit at the cost of skewing traditional metrics like transactions per second (TPS).
To illustrate this point, Deezy.eth shares a recent example of a “based tx” (a highly complex and multi-faceted transaction) on Cardano’s network. This single transaction encompassed the creation of a new token, the deployment of a smart contract, and likely numerous other operations. While this transaction would be counted as a single event on other blockchains, it showcases the depth and sophistication of Cardano’s capabilities, which are often overlooked or misunderstood when assessing traditional metrics.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
