Cardano price has been the most disappointing of the major market capitalization cryptocurrencies. It is currently trading at a discount of 35% to its all-time high reached the week of September 3rd. The altcoin is currently trading at a 42 percent discount to its all-time high.
The Smart contract token has risen 80 times on the charts since the beginning of April 2020, from $0.036 to $3.1.
It was 17 times higher in 2021, and it is now 10 times higher than it was in January 2021. Furthermore, its market capitalization has been hovering around $62 billion. It’s also well-known among crypto-veterans.
Unfortunately, these very positives may indicate that the current cycle’s ceiling for ADA is approaching. Investing in Cardano right now will only return 3x if it reaches $6, or 2x if it starts at $3. As a result, the likelihood of astronomical benefits may be skewed in favor of other, competing ventures.
Also Read : Will Ever Cardano (ADA) Price Break Out Of Consolidation To Reach $2.5?
Will Cardano Price Buck Up?
During negative markets, a strong technical front is critical because it permits credible ventures to survive. Several astute chains have emerged in the last year. They are, however, still discounted in comparison to Cardano.
Let’s compare Cardano’s features to those of a few other protocols with similar capabilities.
Cardano’s smart contracts inclusion for DeFi functionality is its next big feature. Until now, staking ADA has been rewarding but other than that, other projects are already constructing a thriving DeFi ecosystem. Solana has multiple projects on it and a rising NFT marketplace. BSC launched in January 2021, took BNB’s value from $40 to a whopping ~$600, and projects like Luna, Fantom, and Polygon are generating traction.
Cardano is yet to enter this foray and here the idea of “network effect” comes into play.
What is the network effect? Well, technical efficiency and development often lead to hype and market speculation, which leads to a positive price effect. Exhibit A – Ethereum.
Sheldon Evans, a well-known pundit, recently stated that the network effect for all other projects (except Cardano) is developing. And the hype and market speculation will catch up with them, causing their value to skyrocket.
Cardano, on the other hand, could be moving backward. Its ecosystem has already been exposed to a great deal of hype and market frenzy, while technological efficiency is still catching up. Furthermore, technical advancements have a lower and slower overall impact on the pricing.
Also Read : The SEC’s Nose is now Pinocchio’s Nose! Ripple’s XRP Price Could Surge 100%!
The post appeared first on Coinpedia
