Cardano is down to $0.04 after hitting upwards of a dollar in 2017. This means that anyone who put $1000 in Cardano (ADA) when it was trading at $1 is now worth around $46. Quite a devasting drop in price, right? Such a drastic drop in price could lead an investor to question whether Cardano (ADA) is still worth holding. To make such a decision, one needs to look at Cardano’s fundamentals, as well as the overall market dynamics.
Starting with the market dynamics, drastic drops in crypto prices are not something new. In fact, the market has seen worse than this in the past. In 2011, bitcoin (BTC) dropped from over $30 to $2. It then went on to hit a high of over $1000 before collapsing back to $200. Again it emerged from the ashes to hit highs of $20,000 in 2017. This points to an interesting trend in the crypto market. After every crash, it always comes back bigger. As such, for Cardano investors, there is hope. There is hope that once the dust settles, Cardano will set new record highs. Going by past crypto trends, Cardano can realistically hit $5 in the next bull market.
It’s not just market dynamics that support such a massive price move for Cardano, even its internal fundamentals support such a major rise in value. Through research and the application of scientific principles, Cardano (ADA) has solved two of the biggest bottlenecks to blockchain technology. These are scalability and energy efficiency. Starting with scalability, Cardano (ADA) has Ouroboros, a revolutionary proof-of-stake algorithm that allows Cardano to scale while maintaining decentralization and security.
This revolutionary algorithm which is as effective as bitcoin’s POW eliminates the need for the unsustainable energy needs that come with the POW algorithm. Considering that scalability and energy efficiency will play a central role in the long-term growth of blockchain technology, there is no doubt that there is a future for Cardano as blockchain gets more integrated into society.
Cardano also has a development contract with one of the best teams in crypto. The IOHK team led by Charles Hoskinson is no doubt very much comparable to the bitcoin team. Charles in one of the people who was involved with bitcoin and Ethereum in their early days. The technical prowess of this team and their transparency all through the development process is a confidence boost for anyone holding Cardano (ADA) for the long-run. So far, they have proven themselves worthy to believe in, going by their progress on the Cardano roadmap.
With all these factors in its favor, it is quite clear that Cardano (ADA) will bounce back. As such, its current price is a good time to accumulate with a long-term view. It may take years for Cardano and the market to gain strong upside momentum. However, once it does, there is no doubt that it will be stronger than it ever was. It takes vision to make money in crypto, but its always the case with every other market. This could emerge as a $1 trillion dollar crypto in the next decade.