Investors are currently observing an interesting phenomenon with the cryptocurrency Cardano. Despite the short declines in the recent past, the number of users continues to rise. This indicates that there is obviously still a lot of potential hidden here for the future.
The ADA token recently suffered a severe setback, triggered by regulatory concerns in the US. The crypto exchange eToro had previously announced that it would not only cease trading but also staking with the ADA token at the end of this year in the US. From 2022, customers will only be able to send previously purchased tokens to other wallets. The new regulation is not only limited to Cardano, however, but also affects TRX from Tron.
A bright future?
As expected, this news has had a negative impact on the price of the cryptocurrency. It continued to fall. But it has already been in a correction phase for some time. Nevertheless, experts see a good future for Cardano.
This is also because the cryptocurrency already has numerous use cases and some interesting projects in the pipeline. Yahoo Finance praised the robust architecture of the Cardano blockchain. According to the experts, it is apparently much more energy-efficient, scalable and adaptable than those of the competition. The transparency in technical development is also considered an advantage over other projects.
New projects are in development
In any case, Cardano has made provisions for the future. A marketplace for NFT is already in operation, and a peer-to-peer platform for trading art is to follow soon. In addition, Cardano is also working on a platform for trading shares and real assets, which will take place on the Cardano blockchain.
Inexpensive and stable
Compared to its direct competitor Ethereum, Cardano scores with a significantly lower transaction fee when executing smart contracts. According to Yahoo Finance, it is 95 per cent lower than the costs of the competition.
This should further strengthen and expand Cardano’s market position in decentralised finance. Finally, according to its founder Charles Hoskinson, the network has never suffered a failure.
Ranked 6th in the list of largest cryptocurrencies
The ADA coin currently costs $1.74. The cryptocurrency peaked at nearly $3 in the summer and had dropped significantly since then. With a market capitalisation of $57.8 billion, the ADA Coin currently ranks sixth in the list of the world’s largest cryptocurrencies behind Bitcoin, Ethereum, Binance Coin, Tether and Solana.
Despite these setbacks, Cardano is considered a cryptocurrency with a lot of potential, after all, the network proves its focus on concrete use cases and growth.