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Three Reasons That Make Cardano (ADA) One of the Best Cryptocurrencies of 2022

Dren.H
Three Reasons That Make Cardano (ADA) One of the Best Cryptocurrencies of 2022

Cardano is a decentralized blockchain that promotes rigorous, academically-reviewed programming to increase network security. Its native cryptocurrency is ADA, which can be bought and traded on many cryptocurrency exchanges.

Key Points

  • Cardano investors and developers are on the rise.
  • Cardano recently launched smart contracts. Now, it is on its way to increasing the speed of transactions.
  • These and other catalysts could push Cardano higher in the coming months.

Cardano (ADA) has climbed the ranks of cryptocurrencies over the past few years. ADA is currently the eighth largest crypto by market capitalization. Many investors and users are flocking to the Cardano blockchain. Wallets for Cardano’s native currency – ADA – recently hit a record high of over three million, according to Cardano Blockchain Insights. Cardano almost doubled its number of developers last year, according to a research report by Electric Capital.

Three Reasons Why ADA Can Increase in 2022

1. An exciting update is on the way

Transaction speed is a major goal for any blockchain aiming to reshape the way business is conducted. Currently, Cardano processes around 250 transactions per second (TPS). But Cardano aims to go faster. This is where Hydra comes in. Currently, software engineers are working on this scaling solution which involves Hydra heads or off-chain registers. These are parallel to the main network. A Hydra manager can manage transactions between a group of participants who agree to be part of it.

Hydra tests have shown that each bud can handle 1000 TPS. Of course, multiple heads increase this number. Thus, Cardano is well on its way to excelling in speed. But three other metrics could be even more important than TPS, according to Hydra software engineer Matthias Benkort. These are the volume of data processed, the time it takes to complete a transaction, and the amount of work that can be done simultaneously. Hydra excels in all these areas.

So when can we expect the launch of Hydra? This update could happen within the year.

2. A focus on quality

Cardano has established a roadmap of five main development stages. Cardano has already achieved three out of the five, which included the Foundation, Decentralization, and Smart Contracts. Progress is being made simultaneously on these three stages. The end goal is a completely decentralized autonomous system. This step-by-step method is a good way to ensure quality.

Cardano's Roadmap for 2022 and beyond
Cardano’s Roadmap. Source: Cardano

Cardano may not stop there. The blockchain also uses a peer review system. This means that any network update must first go through peer review and receive approval before being implemented. The downside is that it can slow down development a bit. But here’s the big silver lining: these efforts can now prevent future glitches and breakdowns down the road. This means that Cardano is developing a system that people and businesses can rely on. This could help Cardano stand out among the thousands of cryptocurrency users.

3. Huge potential for growth

Today, Cardano is trading for a little below $1. There are approximately 33.7 billion ADA tokens in circulation. If Cardano went x5 the current price, the market cap would reach around $170 billion. Hence, this would make Cardano the third largest cryptocurrency after Bitcoin and Ethereum. So, from a coin supply and price point of view, this scenario of ADA soaring is quite possible.

That increase is also possible from an ecosystem-growth potential perspective. Cardano is still relatively at the early phases of its history. For example, smart contract capabilities were just launched last fall. And as mentioned, development and scaling are ongoing. There are, therefore, many elements that can generate gains for Cardano.

Cardano (ADA) price: what is the current price?

Cardano currently has a price of around $0.95, and it is currently on the rise. Nonetheless, the trend is still bearish in the 1-day chart when looking only at the technical aspect of the price. While a trend reversal is possible soon, fundamentals also suggest that ADA could climb in the top 5 market cap rankings in the next 12 months.

cardano
Cardano (ADA)
Rank: 8
$ 0.537494
Price (BTC)
Ƀ0.00002298
Marketcap
$ 18.21 B
Volume
$ 808.53 M
24h Change
6.65%
Total Supply
45.00 B ADA

Crypto (ADA) Price Prediction for 2022

The Cardano had quite the growth in 2021, with advancements in its ecosystem due to the launch of smart contracts. On the other hand, the fact that the network does not natively have DeFi functionalities at the same level as the likes of its competitors is a disadvantage. Therefore, other more competitive blockchains such as Solana are overshadowing it.

ADA has shown high volatility in 2021, rising to an all-time high of $3 and then dropping quite below $1 in the following months. Some of Cardano’s competitors had more stability over the same period, despite the general bearish nature of the market.

Where and How to Buy ADA?

Buying Cardano (ADA) for Trading Purposes

To trade this cryptocurrency, the eToro is one of the most suitable exchanges, mainly because of the social engagement that allows you to perfect your trading strategies. In addition to buying the tokens, this platform allows you to trade short-term crypto CFDs without having to hold the tokens.

Step 1: Use the search bar on the eToro platform to find the cryptocurrency.

Step 2: Then, click on “Invest” to give the amount of cryptocurrency you want to buy and confirm the transaction.

Buying Cardano (ADA) for Long-Term Investment Purposes

To invest in this cryptocurrency and hold them in a wallet for the longer run, the best method might be through Binance. If you already have an account, simply go to the Binance website/app.

Step 1: Go to the “Buy cryptos” tab and choose the payment method of your choice.

Step 2: Select the crypto to buy and proceed with the payment. Then, the cryptocurrencies will be credited to your wallet.

Conclusion –Is ADA a Good Investment for 2022? 

Faced with competition, Cardano is losing ground and other cryptocurrencies like Solana or Polygon are overshadowing it. Nonetheless, with all the reasons mentioned in this review, ADA could still perform quite well and eventually reach a new all-time high.

Content proposed by our partner Miroir Magazine

More about the author: Almmaye

Alm Maye has been a trader and analyst since 2013. He is an expert in equity markets, Forex, and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to finance. Additionally, he participates in the development of featured articles on various sites such as Actions-boursieres.fr, as well as the international network of Finixio.com.

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