The latest price storm in the market had a devastating effect on cryptocurrencies and Cardano (ADA) was not especially spared from the price slump. Cardano is trading down at levels way lower than its initial one-dollar valuation in 2017.
This is especially a downgrade for an investor that had put in huge figures into investing in the coin. And with the state of the market nerve-racking with resultant sell-offs, this combination of forces could make an investor question whether Cardano is still worth holding on to.
The Market Dynamics
For an investor that has been in the crypto space for quite a while, it is easy to see that price volatility in the market is not exactly new. The crypto market has recorded various price crashes in the past, only to come back stronger.
Bitcoin, at some point peaked at over $1000 before dropping back to about $200. This preceded its rise to over $20,000 in December 2017, before its slump again. However, as influencer, John McAfee noted, every bear market is followed by a glorious spring.
Hence, as cryptocurrencies test new lows this year, there is hope that once dust devil in the crypto market settles, Cardano will be off to a bull start especially with analysts predicting a $10 rise in the next year.
Remarkably Sound Project
The fact that Cardano has established itself as a project with a research-driven approach towards creating solutions to the issues faced by cryptocurrencies is an asset to the future of this coin. Cardano, has upon integration, managed to solve two constantly looming difficulties in the crypto space.
Incorporating the Ouroboros Proof of Stake (PoS) Algorithm, Cardano was, designed to solve scalability issues without violating the integrity of the transactions to be made. Not only does the PoS Algorithm solve scalability issues, it works well with ensuring energy efficiency.
Mining Technology and Development Contract
The PoS algorithm incorporated by Cardano ensures that mining is easily done without the high energy consumption associated with cryptocurrencies with blockchain protocol based on Proof-of-Work.
The fact that Cardano has a development contract with one of the best teams in crypto development is also a merit. Not only have they successfully turned focus to ADA/USD pairs on exchanges, the IOHK team is determined to make the coin a better one with its upcoming update 1.4.
According to team leader, Charles Hoskinson, the team is working hard at reviewing new codes that will invariably give the Cardano ecosystem the best functionality. With Charles Hoskinsonone of the people involved with the development of Ethereum, there is no doubt that the integrity of the Cardano system is in good hands.
Hence, with the crypto market known to move with the slightest prompts and with these factors in favour of Cardano, there is hope that the coin would recover from its slump and hit a marginally high price upon steady growth.