Cardano (ADA.X) has become highly popular in the crypto-community due to its energy efficiency and sustainable platform. The cryptocurrency has provided investors with mammoth returns, gaining 35% YTD. In addition, Tesla’s decision not to adopt Bitcoin payments due to environmental concerns has sparked interest in more energy efficient, next generation cryptos. In context of efficiency, Cardano can process up to 1,000 transactions per second (TPS) compared to Bitcoins 7 TPS. With a growing interest in the Alt-coin, this article will breakdown everything investors need to know about Cardano.
Major cryptocurrencies enter a correction
Over the past few weeks, the wider crypto market has been hit with a steep sell off with Bitcoin leading the downtrend. The selloff was a combination of both internal factors and external factors. Firstly, a recent tweet from Elon Musk highlighted concerns surrounding the environmental factors of Bitcoin mining. In addition, the People’s Bank of China reiterating their ban on financial institutions using crypto for transactions also had a market wide effect on sentiment. Looking internally, momentum decay in Bitcoin was noted by numerous analysts as recent surges could not be sustained. Alt coins such as Dogecoin, Ethereum and Cardano were also effected by the selloff causing an extremely volatile week of trading.
What are analyst forecasting for Cardano in 2021?
Cardano has gained popularity amongst crypto analysts such as Michaël van de Poppe. The analyst noted his bullish stance on Cardano expecting a further run on the price. Weiss Research analysts have given Cardano an overall rating of “B”, a technology and adoption rating of “B-“, and a market performance rating of “B+ according to MarketBeat data.
Other popular crypto currency traders such as @CryptoCapo_ on twitter has noted a bullish stance on Cardano noting the crypto could reach as high as $40 in 2022. It is always worth noting that crypto is seemingly volatile and the above analysis should always be treated with discretion. There is no doubt Cardano is growing in prevalence in the crypto economy. Therefore, we will likely see more institutional analysts weighing in on the valuation of the currency in the future.
Is Cardano (ADA.X) set to bounce back?
Cardano is currently down 29% for the past week of trading, after reaching all time highs of $2.47. As mentioned by analyst Ari Wald in our previous Ethereum article, additional volatility is to be expected with steep uptrends in crypto prices. However, these upward trends have rewarded longer term holders of Cardano. In particular, the one year return of Cardano is currently sitting at 2688%. A $1,000 investment one year ago today would now be worth roughly $26,880.
Is Cardano the future of cryptocurrency?
Investors of Cardano are speculating that there will be a greater adoption of the currency in the future due to its energy efficiency. Elon Musk was not the first Billionaire to warn investors about the carbon footprint of Bitcoin. Bill Gates told the NYT “Bitcoin uses more electricity per transaction than any other method known to mankind,”. However, for Tesla to revert their decision to adopt Bitcoin was huge news for “Third Generation” currencies. This is because these relatively new currencies have built platforms with greater sustainability and efficiency. When corporations look to adopt cryptocurrency as a form of payment in the future, we can likely conclude they will consider efficient Alt-coins as has Elon Musk.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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