Cardano (ADA) is a cryptocurrency that has nearly tripled in value over the last month. Its gains have even eclipsed Bitcoin and the more aggressive Dogecoin. The rally has pushed Cardano to become the ninth-largest cryptocurrency, with a market capitalisation exceeding $34.7 billion.
What is Cardano? What has fuelled this sudden rally? What does the future hold for the ADA token?
According to CoinMarketCap.com, the ADA token surged from $0.33 to over $1.11 in less than 30 days, achieving a 236% gain. However, its value has since corrected and dropped below the $1 mark. Despite this, optimism remains, as the token is testing the $1 mark again, recovering from around $0.89 at the time of writing.
Why Is Cardano Rallying?
Although Cardano’s rally remained subdued following Donald Trump’s victory in the US presidential election, especially compared to Bitcoin and other meme tokens, the ADA token has recently surged. This rally was primarily driven by its founder, Charles Hoskinson, who confirmed his active involvement in shaping US cryptocurrency policy.
“I’m going to be spending quite a bit of time working with lawmakers in Washington DC and quite a bit of time with members of the administration to help foster and facilitate crypto policy alongside other key leaders in the industry,” Hoskinson said in a video posted on X (formerly Twitter).
I'm Back https://t.co/55sN3N7Xq8
— Charles Hoskinson (@IOHK_Charles) November 9, 2024
He further explained his focus on outlining a multifaceted strategy to position the US as a global leader in cryptocurrency. This approach will include administrative changes, rulemaking, executive orders, and legislation.
Hoskinson also emphasised that policies imposed through executive orders are temporary as they “live and die by the administration,” highlighting the priority of passing such policies through legislation.
President-elect Trump has positioned himself as crypto-friendly, referring to himself as the “First Bitcoin President” during his campaign. Many of his top aides are known crypto proponents, including billionaire Elon Musk, regarded as the face of the meme token DOGE.
JUST IN:President Trump is assembling a pro-crypto cabinet and Cardano is poised to benefit hugely from it. pic.twitter.com/EamZOIEScf
— Cardano Intern (@Cardano_Intern) November 27, 2024
Interestingly, there are also reports suggesting that Trump plans to create a crypto advisory role within the White House. However, Hoskinson’s involvement in this development remains unclear.
Another boost for Cardano came from its recent listing on Robinhood, a popular trading platform.
Crypto guru and Cardano co-founder Charles Hoskinson (@IOHK_Charles) endorses RFK Jr., saying he’s the best person to back this November. #KennedyShanahan24 pic.twitter.com/a0taHwr0cD
— Robert F. Kennedy Jr (@RobertKennedyJr) April 17, 2024
What Is Cardano?
After Bitcoin, Ethereum, and popular meme coins like Dogecoin and Shiba Inu, Cardano is among the few cryptocurrency names that blockchain novices might recognise. It is also, arguably, the only upper-tier cryptocurrency that adopts a cautious and measured approach.
Based on an open-source blockchain platform, Cardano was created to address the limitations of earlier blockchain technologies like Bitcoin and Ethereum, particularly in scalability, interoperability, and sustainability. It uses a proof-of-stake consensus mechanism and has a layered architecture that separates settlement and computation layers.
The project is backed by three organisations: Input Output Global, a technology and engineering company; the Cardano Foundation, a non-profit overseeing Cardano’s development and adoption; and Emurgo, its commercial and venture arm.
The ADA token is the native cryptocurrency of the Cardano blockchain. It is used for transaction fees, staking, governance, smart contracts, and decentralised applications.
JUST IN: Cardano $ADA is hitting Wall Street in 2025. pic.twitter.com/2EFo4BwQyr
— TapTools (@TapTools) November 27, 2024
Another Record Value?
Despite the recent rally of the ADA token, its price remains far below its peak of over $2.80 achieved in early 2021 during the altcoin price boom. The subsequent industry-wide downturn significantly impacted prices.
Although Bitcoin has regained momentum despite several challenges, many altcoins, including Cardano, are still struggling to return to their all-time highs, even with recent upward trends.
Cardano (ADA) Price Prediction
Many market analysts are optimistic about ADA’s price and future prospects. While the token is currently hovering around the $1 milestone, further rallies are possible.
CoinJournal suggests that ADA could climb to $2 in the coming weeks if the current momentum is maintained. CoinCodex is more conservative, predicting the ADA price will range between $0.98 and $1.10 by early December 2024.
Coin Edition presents a broader prediction, suggesting the ADA token could reach $9.41 by 2029. Meanwhile, Techopedia offers a more cautious outlook, projecting ADA to hit $6 by 2030, highlighting potential regulatory challenges and market conditions.
Coin Edition is the most optimistic, predicting that ADA will reach $12.54 by the end of 2030.
Changelly also put up a broader average price for ADA's value in the coming years. The prediction is as below:
Cardano: Frequently Asked Questions (FAQs)
Can Cardano reach $100?Cardano is currently trading around $1, with an all-time high of over $2.80 in early 2021. While not impossible, a $100 price target in the near future or even in the next few years is highly unlikely.
Can Cardano reach $10?Cardano could reach $10 over the next few years or by 2030 if it maintains its current momentum and benefits from favourable crypto policies. Coin Edition offers the most bullish projection, estimating $9.41 by 2029 and $12.54 by 2030.
Is Cardano for the masses?The Cardano blockchain is built on an open-source platform and aims to address the challenges of Bitcoin and Ethereum. It claims to offer better scalability and interoperability, supporting smart contracts and decentralised applications.
This article was written by Arnab Shome at www.financemagnates.com.
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