Smart contract and decentralized application development platforms have curved themselves a place in the blockchain space facilitating innovative applications beyond payment and value transfer. Cardano’s research driven development aims at delivering the most advanced platform in this space. Since its release in late 2017, the Cardano (ADA) coin has grown to become the 9th largest cryptocurrency with a market capitalization of USD 1.9 billion trading at a price of USD 0.073. This represents a 267% increase in value over a 12 month period. The current price and position of Cardano (ADA) can be attributed to a number of factors.
Safety and Security
Market expectations have played a major role in driving crypto prices. Cardano is expected to release a paper wallet that will improve safety of user funds by eliminating the risk of online theft and wallet hacks. This is targeted at the non tech savvy population which is yet to get adequate facilitation to get into the crypto industry.
More information has been provided on Cardano’s Proof of Stake (PoS) consensus. While PoS has become more desirable than Proof of Work (PoW) due to its lowered cost, Cardano appreciates the challenges of the PoS mechanism and recommends measures to handle them. These include the use of reliable server nodes to reduce risk of delays when stakeholders in the network are few, a fairer reward system that allows everyone to stake and support ledger maintenance and the choice to join a staking pool. These features and their continued advancements make Cardano desirable.
Support by Wallets and Exchanges
Wallets provide storage for digital assets and an interface through which users interact with the blockchain. Exchanges on the other hand provide liquidity by enabling transfer of value between different assets. Cardano enjoys support from some of the most popular wallets and exchanges in the industry. The latest wallet to announce ADA support is the popular Trezor wallet. The wallet supports a variety of major crytptos including Stellar, Monero and Zcash among others. Cardano has also recently added to its list of exchanges with support from eToro, OKEx. OKEx currently ranks as the second largest crypto exchange and its listing of Cardano opens up more opportunities for the coin. OKCoin is also introducing a USD/ADA trading pair on its platform.
Despite the limited efforts in marketing, Cardano continues to make updates and improvements on the platform. The platform’s focus on research driven development has enabled the platform release superior features that make it even more attractive. The most awaited update is expected to bring full autonomy to decentralization to Cardano. Besides introducing a more democratic and fair voting platform, the Shelley update will take advantage of Ouroboros delegation, multi-signature transactions, consensus and incentive fees, light client mode, enhanced wallet backend and human-friendly addresses.
Cardano is competing in the same space as Ethereum, a smart contract development platform written in solidity and which ranks 2nd among cryptocurrencies with a USD 20.98 billion market capitalization. The Ethereum platform continues to receive development updates incorporating features for enhanced scalability, safety and security etc. Ethereum enjoys daily trade volumes more than 100 times that of Cardano. Such competitiveness from one of the largest platforms posses a hurdle for the price to grow.
Despite its obvious popularity as evidenced by its ranking among peers, Cardano has been considered one of the most undervalued crytptos in the market. This has been attributed to the team’s focus on technological development aimed at making it the best smart contract development platform rather than marketing the platform to drive up the price. Taking into account developments on the platform, support from other players in the industry, partnerships between Cardano and organizations across different jurisdictions, it is arguable that the Cardano (ADA) coin is trading below its true value.