Know Your Crypto: Cardano (ADA)

• Cardano (ADA) is a blockchain platform built on a proof-of-stake consensus protocol (called Ouroboros) that validates transactions without high energy cost
• On Sept. 4, ADA finally broke through the local resistance level on the ADA/BTC pair, marking a potential reversal against the first cryptocurrency

Cardano is a public blockchain in a market of more than 10,000 coins. The individual unit of Cardano is called ADA. The public blockchain platform was created in 2015 by the co-founder of Ethereum Charles Hoskinson. The cryptocurrency is open-sourced and runs on a decentralized public ledger using blockchain technology. Cardano implemented decentralized finance (DeFi) services on September 12, 2021, including an upgrade to enable smart contracts and the ability to build decentralized applications.

Cardano is so cheap because it is a fairly new project that has not caught mainstream attention like Bitcoin or Ethereum. The second factor for this is that there exists 45 billion Cardano. So the relative price per share (ADA) is low because the total supply is so large.

Specifically, Cardano aims to solve problems related to scalability, interoperability, and sustainability on cryptocurrency platforms. The first problem refers to the slowing down of networks and high fees due to an increase in transaction volumes.

Cardano’s proof of stake system allows those who own the cryptocurrency and those who have an interest in maintaining the integrity of the system to validate transactions on the blockchain. Proof-of-stake blockchains use significantly less energy than proof-of-work chains. Cardano uses a proof-of-stake protocol named Ouroboros. The Cardano network uses 6 GWh annually, less than 0.01% of the 110.53 TWh used by the Bitcoin network.

Cardano technically can’t be mined, but you can stake it for rewards on Uphold! Mining cryptocurrencies is an area of the crypto space that is a mystery to many. While some may have a surface-level understanding, most people have difficulty explaining how it works in detail.

Cardano rises and falls as the optimism of traders waxes and wanes. As of January 2022, there were about 33.5 billion ADA in circulation. The total supply is capped at 45 billion coins. Cardano (ADA) is a cryptocurrency currently worth about $0.55 per coin, down from an all-time high of $3.10 last summer. The coin has a market cap of roughly $18.8 billion as of August 2022. Despite the steep decline in value, similar to most cryptocurrencies of late, innovations on the platform could result in growth.

Based on Cardano’s predictions, a long-term increase is expected, the ADA forecast for 2027 is $5.570. With a 5-year investment, the revenue is expected to be around +482.64%. Cardano is one of the coins with good potential, which translates to a promising future. According to a technical analysis of Cardano prices expected in 2022, the minimum cost of Cardano might be $0.58. The maximum level that the ADA price may reach is $0.64.