What Does the Future Hold for Cardano?
Cardano (ADA) is a cryptocurrency launched in 2017 on the Cardano blockchain. It is considered the first peer-reviewed decentralized blockchain solution. This technology was created by Input Output, which is led by Chelz Hoskinson, one of the co-founders of Ethereum.
Shortly after its launch, ADA has secured a spot on the list of top cryptocurrencies. Part of the altcoin’s success is due to the interesting programming language used to create it. It is believed that it is used by the military and other highly professional departments and this has increased the value of Cardano for various sectors of the economy.
Cardano Runs On A Fully Decentralized Network
Since the spring of 2021, the production of the Cardano block has been handled by a community of share pool operators (SPO). Thus complete decentralization of block production was achieved. The focus is on the connections between the major nodes of the SPO ecosystem.
At the same time, the developers were working on creating peer-to-peer code. The implementation of this code will increase the efficiency and the degree of decentralization of the network.
IOHK is developing its own smart contract language, which is scheduled to be released by the end of 2021. The company is establishing partnerships with software developers for decentralized applications.
The company plans to carry out a hard fork of the Cardano blockchain. This should make it easier to implement smart contracts. Also, the company is making a lot of efforts to keep Cardano in high positions in the rating, since decentralized financing should start soon.
This altcoin is now one of the largest blockchains that uses the Proof-of-Stake (PoS) consensus algorithm to process transactions. Bitcoin and most blockchains use the more energy-intensive Proof-of-Work (PoW) algorithm. Ethereum was the first to use smart contracts, but so far it is only preparing to switch to the PoS algorithm.
History of ADA
In the fall of 2017, the coin entered the market and grew rapidly from its original $ 0.002953 to $ 1.0797. It became one of the most attractive cryptocurrencies of that period and by the beginning of 2018 had taken a significant share of the market. An all-time high of $ 2.46 was reached in May 2021. A few days later, ADA ranked fourth in terms of market capitalization. Soon the price of the coin dropped and now it is trading well below $ 2. Of course, such significant fluctuations in value cast doubt on the Cardano future.
Future of ADA
The most optimistic forecasts are that the ADA could reach $ 3.194 by the end of the year, provided the network continues to strive to reduce its carbon footprint. Continuing with this strategy opens up prospects for growth to $ 5.13 over the next year.
If there is no significant development in the network, it is worth expecting that ADA will trade between 2.2 and 2.5 dollars. Analysts believe that when forming an investment portfolio, it is worth paying attention to Cardano. However, before making a decision, it is worth doing your own research and weighing the risks.
In addition to high volatility, the cryptocurrency market has other features that greatly complicate the ability to forecast. He is predicted to grow further, and for this it is enough to look even at the XRP price prediction 2025. However, the real growth rates and possible market downturns on the way to new highs may differ greatly from the most daring forecasts.