2021 is promising to be a repeat of the 2017 bull market run. Prices of crypto assets are soaring and breaking all-time highs (ATH) while registering double-digit percentage gains daily. One of those cryptocurrencies is Cardano (ADA).
What is Cardano (ADA)?
The Cardano proof-of-stake blockchain is a distributed ledger technology that enables decentralized applications (dAPPs) and protocol creation. Its decentralized nature enables anyone to send and receive funds globally easily.
According to Cardano’s founder, Charles Hoskinson, the network is far more decentralized than Bitcoin. He claimed that the number of unique entities producing blocks is over 100 times greater than Bitcoin’s.
Cardano’s Price Performance Year-to-Date
At the time of writing, Cardano price sits at $2.31, which is an 11% drop since the start of the day (September 8, 2021).
Historically, ADA has performed exceptionally well for itself, given not many critics it has. ADA was trading at $0.30 in January 2021.
Since then, it has experienced a superb burst in price action and over 1400% (14X) increase in just eight months. ADA touched an all-time high price of $3.09 on September 2, 2021. However, since then, it has been on a downward spiral.
The flash crash that took place yesterday saw the whole crypto market lost $400 billion in minutes, while Bitcoin itself lost $5 billion from its market cap. ADA took the hit too and fell to its current price. From its ATH 6 days ago, Cardano is now down 24.9%. Historically, ADA touched its all-time low price of $0.019 on March 13, 2020. 1.5 years later, it has rebounded a staggering 11,944% (119X).
Can Cardano Price Touch $10 by the End of the Year 2021?
Wallet Investor sees Cardano trading at between $3.30 to $3.7 by close of the year. On the other hand, Long Forecast estimates a $2.34 ADA by December. These prices seem conservative given ADA’s 1400% increase so far in 2021. Such reserved predictions do not spell well for Cardano. $10 per token is a long shot from here by the end of 2021.
This conservativeness in price prediction from analysts might be due to reports about Cardano’s network problems. On September 4, Anthony Sassano, an advocate for Ethereum, released a list of screenshots that showed a serious flaw in Cardano. This particular flaw is a concurrency issue that can occur when multiple users try to interact with a program or protocol simultaneously. The defect renders the chain’s smart contracts mute. Since then, Mr. Hoskinson has released a video to address the problem.
With such drawbacks this late into the year, it is improbable that ADA touches $10. Many blue-chip cryptocurrencies rely on fundamentals to rise in price, and Cardano is quite behind on fundamentals. A $10 ADA by the end of 2021 is pretty far-fetched.