Cardano is a third-generation blockchain platform that wants to improve the features of Bitcoin and Ethereum. Cardano has always focused on a research-driven approach to revolutionize plenty of areas of the crypto space, such as smart contracts and DeFi services. When it was developed, Cardano used advanced technology and academic research to find solutions to become better than its predecessors. Now, Cardano is an essential player in the crypto realm that focuses on plenty of important concepts, such as sustainability, scalability, and interoperability.

ADA is the platform’s native token, powering the ecosystem and offering financial instruments so that Cardano can be more inclusive, secure, and efficient for users worldwide. ADA has the potential to expand a lot in the future thanks to its strong development roadmap, innovative design, and ability to address critical challenges in the crypto space. Because of this, ADA can increase its value in the future, as we can notice from the ADA price prediction.

In this article, we will explore whether ADA is a good investment opportunity. Keep reading to explore more.

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A better overview of Cardano

Cardano is a digital ledger that uses blockchain technology to offer improved operations over Bitcoin and Ethereum. Cardano has a multi-layered and unique structure that can enhance security, scalability, and security at the crypto’s pace. Cardano has two necessary layers: The Cardano Computation Layer (CCL) and the Cardano Settlement Layer (CSL). These two layers have important roles that help Cardano offer the best experience to users. For example, the CCL takes care of decentralized applications (dApps) and smart contracts, while the CSL ensures the security of the ledger and processes transactions.

Because Cardano is divided into these layers, this platform has better scalability and flexibility over other networks from the crypto space. Additionally, these layers are updated separately, which means that they reduce the chances of delays for the other one. Cardano validates transactions and adds new blocks with the help of an Ouroboros Proof-of-Stake (PoS), which promotes important concepts, such as energy efficiency. Bitcoin uses a Proof-of-Work (PoW) consensus mechanism that has drawn a lot of criticism over the years because it is associated with a negative impact on the environment.

Another strong point of Cardano is that it highlights the importance of decentralization and security. Before it was launched, Cardano had academic peer-reviewed research in the development process to equip it with everything it needs to thrive in the competitive crypto landscape. Additionally, on Cardano, network participants have an active role, as they can participate in decision-making that impacts the direction of the network. This is done through the Project Catalyst system, where individuals can vote and propose the next upgrades or project funding. Cardano also benefits from interoperability in the way that it can interact with other blockchains, being even more accessible and matching the growing demands present in the DeFi field.

How did ADA behave in the past?

• 2017: When it was launched on the market, ADA started to be traded at $0.025. This price remained quite the same until November when it started to rise because of a crypto bull market that increased the value of all digital coins. Because of the surge in value at this time, Caradano managed to have a market cap of $1 billion.
• 2018: In 2018, ADA hit the $1.21 mark, an increase of 4,000%. However, as cryptocurrencies are volatile assets, their price fell in late 2018 to $0,03, somehow repositioning Cardano back to the start.
• 2019: 2019 wasn’t the best year for Cardano, as the cryptocurrency didn’t break $0.1.
• 2020: In the first months of 2020, ADA’s value was low when the price fell by 45% in one day. In August, Cardano showed signs of recovery, reaching $0.14 and ending the year with a value of $0.17.
• 2021: In the first quarter of 2021, the price rose to $1.43, giving it a market cap of $40 billion. This year, Cardano hit an all-time high of $3.1.
• 2022: 2022 brought a negative outcome, as Cardano lost its value and fell to $0.26.
• 2023: In 2023, Ada mainly stayed between $0.2 and $0.3.
• 2024: Thanks to the bullish market, ADA went up to $1.23.

What are the factors that impact Cardano’s Price?

Many factors, both external and internal, can affect the Cardano price. Some of the factors that can affect its value are supply and demand, competition with other digital coins, better adoption by important institutions, and technological improvements.

Let’s take the example of supply and demand, as this can greatly impact the value of Cardano. When there is demand for ADA tokens, the price of Cardano sees high values, and this also happens in reverse. Another positive reason that can bring the higher processes in Cardano is to be more adopted, which can be done through partnerships with important businesses, governments, or other financial institutions. This can make ADA a stable cryptocurrency and increase liquidity, which has a positive impact on Cardano’s price.

So, is ADA a good investment?

ADA can be a good investment because of its many benefits and the fact that it attracts the attention of investors looking for a research-driven and well-designed blockchain. One of Cardano’s strong points is its consensus mechanics, sustainability and scalability, and multi-layer architecture. However, Cardano is still a cryptocurrency, which highlights that it is still subject to a lot of volatility. This means that you must research the market before adding it to your portfolio.

From the realm of cryptocurrencies present, Cardano has managed to remain a viable solution because of its strong features. As the competition is fierce in the crypto space, digital coins must develop something unique to have the upper hand. And Cardano knew how to do this.