Cardano was rocked when the United States Security and Exchange Commission (SEC) said its ADA coin was an unregistered security.
The regulator made its claim when it sued the Binance crypto exchange in June. Since then, the price of ADA has made something of a recovery, although it is still down from pre-crash levels.
However, not everything is bad in the world of Cardano. A report suggests that more people are using the blockchain’s decentralized applications (dApps).
Not only that, but in September 2023, Cardano announced the 192 winners of its Project Catalyst Fund10 scheme. These proposals will receive 50 million ADA, worth about $12.25 million, between them. The proposals should help enhance the Cardano platform.
Cardano did not immediately respond to a request for comment.
But what is Cardano (ADA)? How does Cardano work? Let’s take a look and see what we can find out, and also cast our eyes over some of the Cardano price predictions that were being made as of September 22 2023.
Let’s examine some of the Cardano price predictions being made on September 22 2023.
First, CoinCodex had a somewhat mixed short-term Cardano price prediction for 2023. The site said the coin could rise to $0.251 by September 27 but then fall to $0.2486 by October 22. The site’s technical analysis was extremely bearish, with 29 indicators making downbeat signals compared to just one making a bullish one.
In terms of an ADA price prediction for 2025, CaptainAltCoin suggested it could reach $0.6128. DigitalCoinPrice suggested an average of $0.81. Meanwhile, PricePrediction.net said that ADA would hit $0.75.
In terms of a long-term Cardano price prediction, CaptainAltCoin said ADA would trade at $1.53 in 2030, while DigitalCoinPrice was more optimistic, saying it would be worth $2.54. PricePrediction.net was even more bullish, forecasting it to hit an average of $5.18.
Blockchain analytics company Messari recently released its quarterly report on Cardano . It highlighted that the blockchain prioritized stability and sustainability over speed, and outlined some key advantages and disadvantages of the platform.
It said that between April and June 2023, Cardano had
Messari says that Cardano
Messari also said that Cardano
Let’s now take a quick look at some of the highlights and lowlights of the Cardano price history . While past performance should never be taken as an indicator of future results, knowing what Cardano has done in the past can help give us some much-needed context when it comes to either making or interpreting a Cardano price prediction.
When Cardano first came onto the market in 2017, it was worth about $0.02. Late 2017 and early 2018 the crypto market experienced a bubble, and ADA shot up to $1.33 on 4 January before the bubble burst and the coin spent much of the next few years at around $0.08.
Things changed when the market boomed in early 2021, and ADA was in on the action, breaking past the dollar again in February on its way to a peak of $2.46 on 16 May. After that, though, the Great Crypto Day Crash of 19 May saw it spend much of the following months in the doldrums before excitement about the Alonzo upgrade, which saw Cardano utilize smart contracts for the first time, led to it reaching an all-time high of $3.10. Once Alonzo was put in place, the market decided the coin was overvalued and it dropped, sinking to below $2 to close the year at $1.31.
2022 was a bad year for crypto and for ADA, which fell below the dollar in April and suffered through a number of market crashes. Not even the news of the Vasil hard fork, which was designed to improve the system’s performance, could stop things going down, with it closing the year at $0.2465, an annual loss of more than 80%.
The new year saw something of an overall improvement, and it peaked at $0.4606 on 15 April but then it was back downhill. Following the news that the SEC considered ADA to be an unregistered security, it reached a low on 10 June. The coin dropped to $0.2304 as Crypto.com (CRO) suspended its US institutional operations.
After that, there was a recovery, with it spiking at $0.3747 on July 14. This was in response to the news that a court had found that Ripple’s XRP was not a security when it was sold on exchanges. It fell in August following a market crash partially triggered by Elon Musk’s SpaceX selling millions of dollars worth of Bitcoin (BTC). By September 11, it was worth $0.2376.
Since then it has made something of a recovery and, on September 22 2023, it was worth about $0.2455.
At that time, there were about 35.1 billion ADA in circulation out of a total supply of about 36.1 billion. This gave the coin a market cap of around $8.6 billion, making it the eighth-largest crypto by that metric.
ADA has been in a bear market since reaching its all-time high in September 2021. This was the final move in a bull cycle that started back in March 2020.
The coin was sent into a sharp downward spiral and kept dropping, without any major corrections or consolidations. It finally reached a plateau in December 2022 when it fell to $0.24.
2023 saw it launch a minor recovery, but ADA fell down and is now where it was late last year.
The above price chart shows a descending trendline since it reached a high in April. If we treat $0.24 as a base price level, we are currently at the apex of a descending triangle shape.
In turn, this means that we could see a breakout of some sort soon. The problem is that we don’t know whether the price will rise or fall. If it goes up, then it could reach somewhere in the region of $0.40 before too long.
On the other hand, if it falls, it could go as low as $0.15.
Cardano is one of the biggest cryptos out there, with a market cap of about $8.6 billion. However, the coin has been through a tough time lately, and things have got worse following the SEC’s claim that it is an unregistered security.
What happens to the crypto in the future will depend a lot on what courts think. On the other hand, the platform has a pretty active developer base, and has been able to institute a number of upgrades to help it keep working.
At the end of the day, you will need to make sure you do your own research before deciding whether or not to invest in ADA.
No one can really tell right now. While price forecasts are broadly optimistic, price predictions are very often wrong. As always, it is important to remember that prices can, and do, go down as well as up.
Before investing in Cardano, you will need to do your own research on ADA and other similar coins and tokens, such as Ether (ETH) and Solana (SOL). Ultimately, though, this is a question you will have to answer for yourself. Before doing so, remember that you must never invest more money than you can afford to lose.
In its technical documentation, or whitepaper, Cardano says that scientific research is at the heart of everything it does.
It says: “Cardano is a decentralized third-generation proof-of-stake blockchain platform and home to the ada cryptocurrency. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.
“The Cardano platform has been designed from the ground up and verified by an industry-leading combination of top engineers and academic experts in the fields of blockchain and cryptography. It has a strong focus on sustainability, scalability, and transparency. It is a fully open source project that aims to deliver an inclusive, fair, and resilient infrastructure for financial and social applications on a global scale. One of its primary goals is to bring reliable, secure financial services to those people who do not currently have access.”
In the world of cryptocurrency, pretty much everything is powered by the blockchain. This decentralized ledger is so key to crypto that people outside the crypto-sphere use the two terms interchangeably. Blockchains can be split into two. Some use the Proof-of-Work (PoW) consensus mechanism. This is where people add blocks to the chain and earn crypto by solving increasingly complex mathematical equations. Others use Proof-of-Stake (PoS). This sees people chosen to add blocks based on how much of the crypto they already hold.
PoS is a newer method of working, and it is seen as being more environmentally friendly. One of the most notable PoS blockchains is Cardano, set up in 2017 by Ethereum (ETH) co-founder Charles Hoskinson.
Cardano has a number of features that help it to stand out. Firstly, it bases its developments on computer research, with it publishing its reports in peer-reviewed papers. It also features smart contracts, computer programs that automatically execute when certain conditions are met. These were introduced in September 2021.
It is powered by its own native token, ADA, named after 19th-century computing pioneer Ada Lovelace. ADA is used to reward people who add blocks to the blockchain, and holders can either vote on proposals regarding the network or delegate their voting rights in return for more rewards.
Cardano uses a consensus mechanism called Ouroboros. The system itself makes use of two layers. The first, known as Cardano Settlement Layer (CSL), is responsible for recording transactions and facilitating the transfer of the ADA coin.
The second, called Cardano Computational Layer (CCL), utilizes smart contract technology that developers can make use of to transfer funds.
Additionally, the network accommodates three types of users. The first type is mCore nodes, which play a role in governing the Cardano blockchain. The second type is relay nodes, which help the transfer of data between the mCore nodes and the internet. The third type is edge nodes, which are responsible for creating cryptocurrency transactions.
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On September 22 2023, there were about 35.1 billion ADA in circulation out of a total supply of about 36.1 billion.
It might do, but it is unlikely to do so at any point soon. Its highest ever price was $3.10, which it hit in early September 2021. It is now worth less than 10% of that. That said, PricePrediction.net argued that it could break past $10 by 2032.
Cardano (ADA) is used to pay for transactions on the Cardano blockchain. It can also be staked in return for rewards, and holders can vote on changes to the network. It can also be bought, sold, and traded on exchanges.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.