Cardano (ADA) Price Prediction 2018: Why This Cryptocurrency is Rallying
Just as the cryptocurrency markets were taking a breather, an underdog largely unheard of until now leapt to the forefront. Cardano (ADA) is now amongst the top 10 most valuable cryptocurrencies in the world, coveniently pushing Monero, NEO and NEM out of the way. But what is Cardano and why is the market abuzz about it? Read on for answers to these questions and more, followed by my Cardano (ADA) price prediction for 2018, which spells triple-digit gains in this cryptocurrency.
Cryptocurrency investors met with a little speed bump this week. Prices of top cryptocurrencies dropped as much as 20% as the market went for a major correction. Although most coin prices have rebounded (albeit, partly), the plunge was enough to nudge awake the crypto-maniacs dozing off on this Kool-Aid.
The harsh reality is that these “cryptic” investments are turning investors complacent. Cryptocurrencies are creating overnight millionaires and the “believers” seem unconcerned about the possible price bubble in the making, which could pop at any time and kill their dreams.
Despite remaining bullish, I’ve been urging cryptocurrency investors to understand that this new “it” investment idea is rife with pitfalls. In the crypto universe, where over 1,300 cryptocurrencies are fighting for investor dollars, not all are worth your money and time.
Betting and trading may work in the short term if the stars are in your favor, but for long-term success, finding the right cryptocurrencies which characterize a unique moat is the key.
Ethereum’s meteoric rise in just five years from being relatively unknown to becoming the second-most valuable cryptocurrency in the world speaks for itself. In fact, other smaller cryptocurrencies are taking after it in efforts to gain prominence in the crypto world, touting themselves as “Ethereum equivalents” or “Ethereum killers.”
One such is Cardano, which is being promoted as an Ethereum competitor with better features. A lead personality behind Cardano is also a former Ethereum developer and, in fact, the same brains are building Cardano who gave us Ethereum Classic (the cryptocurrency hard-forked from Ethereum).
So before I get to Cardano (ADA) price prediction for 2018, here’s a quick overview of what it actually is, in case you’re new to this blockchain technology.
What is Cardano (ADA) Cryptocurrency?
Cardano, like Bitcoin and Ethereum, is a blockchain-based platform for individuals and organizations to conduct financial transactions anonymously and privately without the interference or surveillance of a third party.
These transactions are conducted on the Cardano platform using its cryptocurrency “Ada,” the equivalent of “ether” on Ethereum and bitcoins (with a small “b”) on Bitcoin platforms.
Cardano vs. Ethereum, Bitcoin
The success of any currency, be it fiat or crypto, depends upon the scale of its adoption. The bigger the community using it, the more widespread its use and the more valuable it is.
With that in mind, the team of developers behind Cardano is promoting it as the first-of-its-kind cryptocurrency, which may appeal not only to users and investors, but also to regulators who have largely remained reluctant to legalize cryptocurrencies.
While it’s true that most altcoins are hailed for their privacy feature, complete anonymity can sometimes be counterproductive. Take the example of Monero, which is touted for offering absolute anonymity to its users. But that very feature is garnering bad press as Monero gets popular on the dark web for moving drug or black money. The negativity is beginning to scare traditional investors away.
To ward off similar stereotypes, Cardano is seeking the right mix between privacy and regulation to appeal to the mass investor community.
The Cardano platform is built in layers so that user privacy remains protected. At the same time, it allows for improvement in its technology via “soft forks” (unlike the “hard forks” in Bitcoin and Ethereum, which have ended up splitting those platforms).
Cardano uses a unique “proof-of-stake” algorithm which isn’t as capital-intensive as Bitcoin’s “proof-of-work” algorithm. In other words, miners do not require expensive hardware or a lot of power to mine ADA coins, like they do with Bitcoin. That feature makes Cardano a less costly alternative to Bitcoin.
Likewise, Cardano is competing with Ethereum on two fronts:
- Scalability: A downside to Ethereum is that it can only process 15 transactions per second, which renders it a slow blockchain technology. Cardano promises better scalability with the ability to process greater number of transactions at a faster pace.
- Interoperability: Bitcoin and Ethereum are good enough to entertain only their own cryptocurrencies on their platforms. By contrast, Cardano promises to not only support ADA, but also other cryptocurrencies on its blockchain. Cardano’s wallet “Daedalus” will soon allow users to store and use Bitcoin and Ethereum Classic in addition to ADA, all from one place.
With those defining features in mind, I’ll head straight to my Cardano (ADA) price prediction for 2018 now.
Cardano (ADA) Price Prediction 2018: One Cryptocurrency with Great Upside Potential
Even a fool could see the obvious upside in Cardano. This cryptocurrency is not only a better iteration of Bitcoin and Ethereum’s older blockchain technologies, it is also likely to sit well with the governments and regulatory bodies around the world who have so far denounced the very idea of cryptocurrencies.
But that’s not all. The team behind Cardano is taking this cryptocurrency to the next level. They have vowed to bring traditional fiat currency products and services to the Cardano network.
Beginning with ADA debit cards, the team has plans to eventually set up ADA ATMs across Japan. You may ask why Cardano has picked Japan as its launch market before it moves to the rest of the world. That’s because Japan is well-suited for a test run, as the majority of its population is already accustomed to or is investing in cryptocurrencies.
Because of Cardano’s Japanese initiatives, many are beginning to call it the “Ethereum of Japan.”
Cardano’s big bets have already caught the attention of savvy crypto-investors who are beginning to load up on ADA. The ADA-to-USD price has shot up more than 500% in a week, soon after the cryptocurrency became available to trade on major exchanges Bittrex and Binance.
The ADA-to-USD price had remained flat at around $0.02 apiece for months before it shot up to $0.13 the past week. Daily trade volume has also caught steam as buying and selling activity picks up.
But looking beyond these bullish signals, I’m seeing further upside due to another key development expected in 2018, which could push the Cardano (ADA) price past $1.00.
Cardano is currently in the development phase. The current generation of Cardano’s technology is named “Byron,” which is its first layer that allows for basic financial transactions using ADA. The second generation of Cardano will be launched next year, most likely during the second quarter, and will offer a lot more in terms of utility.
This second installment is dubbed “Shelley” and will come with the added layer of “smart contracts,” something similar to Ethereum’s smart contracts, which will allow users to conduct more than just financial transactions on its platform.
On Shelley, Cardano users will be able to customize their financial and business contracts while maintaining privacy in their transactions.
This is the point when ADA may see another round of triple-digit gains in prices.
Cryptocurrencies have gained significant traction in the investor community as a growing number of people subscribe to this investment idea. But the hyperinflated prices are now becoming worrisome as fears of a price bubble grow.
In times like these, look for an undervalued cryptocurrency boasting a solid upside potential. Cardano is one option which is likely to not disappoint you.
This cryptocurrency is still under development and investors have a good chance to strike while the iron is still hot. The tailwinds I mentioned above may become the precursors of a major rally in Cardano prices in 2018.
I’m calling for triple-digit gains in Ada prices in 2018. My Cardano (ADA) price prediction for 2018 is bullish, with a price target of $1.00 by summer of 2018, possibly ahead of Shelley’s release.