Cardano Is the Pick of the Crypto Industry at This Time
Cardano (ADA-USD) is picking up momentum after a prolonged bearish run
A leading position in Grayscale’s new fund is a massive vote of confidence
Incredible outlook ahead, with the launch of new updates
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The past 30 days have been incredible for Cardano (ADA-USD). After a prolonged bearish run, the proof-of-stake crypto saw a 40% gain in its value in the past month. ADA-USD has been growing on the back of multiple growth drivers, adding millions to its market cap. Moreover, it has one of the most ambitious long-term expansion plans, further increasing its burgeoning utility.
In general, the crypto market has been trading in the green, which finally points to a reversal in fortunes for investors. Analysts believe that Bitcoin (BTC-USD) could be on the brink of a massive breakout, as it looks to test the $45,000 mark. Since mid-January, the industry stalwart has seen strong resistance around the $45,000 mark. This all seems a wash after today’s adjustment to the crypto market, shedding some of its gains, 0verall the market is still up.
Hence, the market seems more conducive for some promising digital assets to kickstart their bull runs. Cardano stands out in a sea of cryptos with one of the strongest set of use-cases and a lofty outlook that is second to none.
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What Is Happening to Cardano?
A couple of catalysts have pushed ADA’s price of late. The first is receiving the largest percentage holding in Grayscale’s newly launched smart contract fund. It enjoys a 24% weighting in the fund, showing its importance to institutional investors. One of the main reasons cryptocurrencies shot back into the spotlight during the pandemic was the increasing interest from institutional investors. The vote of confidence from some of the biggest investors has benefitted Cardano and its peers immensely. Moreover, Cardano rose 10% in value following its inclusion in the fund.
Furthermore, top crypto exchange Coinbase (NASDAQ:COIN) recently announced it would allow staking on its platform. Cardano will be among the first blockchains which will be part of the new offering. The current return on holding for ADA-USD is at a healthy 3.75%. Moreover, users will receive their rewards once the initial holding period is complete.
The 3.75% yield is a handsome return for most investors in terms of capital appreciation. The added staking features on Coinbase will only boost the network’s long-term value for investors.
Sublime Outlook Ahead
One of the most encouraging aspects of Cardano is its ability to evolve and separate itself from the pack continually. It boasts an amazing track record of successful updates, and its developers have set new goals for them to refine the platform. Their phased development strategy has been highly successful as it plans to take things up a few notches in the coming years.
Cardano’s upcoming phase will focus on scalability after focusing on speed and launching smart contracts on its platform. The ‘Basho’ phase will introduce technologies such as Hydra, which could take its throughput to millions of transactions per second (TPS). Hydra technology uses off-chain ledgers to prevent network bottlenecks. If the team can successfully implement the technology, Cardano could give Visa (NYSE:V) a run for its money.
However, the astronomical target of one million TPS seems far-fetched at best. Moreover, developers have also stressed that the target is more aspirational and scalability depends on demand. Nevertheless, the update will surely increase Cardano’s throughput from 250 TPS and might even eclipse Visa’s theoretical capacity of around 65,000 TPS. In achieving mainstream adoption, the crypto has to bump its transaction speeds significantly in the coming years.
Final Word on Cardano
Cardano has been on the move for the past couple of months. With multiple positive developments, crypto is off to a great start. As we progress further into the year, it could start picking up at an exceptional pace with successful dapp launches and new updates.
The crypto market remains volatile, though, and no digital asset, including Cardano, can flip the script if the industry bellwethers falter. However, with a laundry list of use-cases and an enticing outlook ahead, Cardano remains the pick of the market at this time. As always, it’s best to invest what you can lose in the market and rely on a dollar-cost averaging strategy to keep the risk in check.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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