Adadao price prediction: DeFi platform launched on Cardano

Adadao, a DeFi protocol launched on Cardano in March, gained 9% in the first week of April

Graphic of Adadao logo against a pink background                                 
The Adadao, currently ranked #2,937 by CoinMarketCap, has a long way to go before becoming a frontrunner on the DeFi scene – Photo: Shutterstock
                                

Contents

Claiming to be the “world’s first interest-free stablecoin protocol”, Adadao is a decentralised finance (DeFi) protocol built on the Cardano blockchain, which has ADA as its token. The project facilitates the creation of collaterised stablecoins through leveraging assets on Cardano.

While ADAO is the utility and governance token of the project, AUSD is the stablecoin. Holders of the ADAO token are rewarded with a share of the fees raised through the profits amassed by the protocol. Holders can also vote on changes to the parameters of the project.

While the project functions as a decentralised autonomous organisation (DAO), a foundation has been set up to support initial development of the project.

So far, the protocol has failed to significantly stir the market, as suggested by the token mostly trading sideways since its launch, but what does that mean for an Adadao price prediction?

Before looking at forecasts, let’s do an overview of the coin.

What is Adadao (ADAO)?

According to the protocol’s whitepaper, AUSD stablecoin is “a soft-pegged cryptocurrency” that is “decentralised, unbiased collateral-backed, which can be stored in wallets or used on platforms”.

By depositing collateral assets into the Adadao Vaults, users can earn AUSD. Holders of AUSD can then use it to buy services or goods, or to buy “more ADA for creating a leveraged position.”

According to the Adadao documentation, all AUSD tokens in circulation ared directly backed by extra collateral. This means the value of the collateral exceeds the AUSD loan. Furthermore, all transactions are visible and trackable on the Cardano blockchain.

In order to generate the stablecoin, users must pay a stability fee. This, says the whitepaper, is a fixed percentage calculated “on top of the amount of AUSD generated against the collateral of a Vault. Only AUSD is used to pay the fee, which is subsequently transferred to the Adadao Buffer. This is a one-time fee and does not depend on the duration of the loan.”

To reclaim the collateral, the vault owner has to pay back all the AUSD that was generated including the stability fee.

If the value of the collateral falls below the liquidation ratio or minimum level, then the vault is liquidated. The project auctions off a proportion of collateral to cover outstanding debt plus the liquidation penalty. The project also burns AUSD to constrict supply.

In terms of governance, ADAO token holders can vote on a range of matters involving the future direction of the project, including changing risk parameters, choosing the set of oracle feeds, triggering emergency shutdowns or whether to upgrade the system.

Due to the fact that the project is a DAO, there is no founder. However, Obaid Ul Ahad is the CEO of Adadao.

Based in Kolkata, India, Ahad studied petroleum engineering and petroleum management at the Indian Institute of Technology. Before becoming Adadao’s CEO, he founded the multichain decentralised presale platform Cardence.

How does this information impact this year’s Adadao price prediction? Or even an Adadao crypto price prediction for 2030?

Before looking at forecasts, let’s look at recent token performance.

Adadao recent coin performance

ADAO rose immediately after launch from an opening price of $0.05502 on 21 March 2022 to a high of $0.1332 that the same day, according to CoinMarketCap. Following significant volatility through the next day, the coin saw an intraday low of $0.06347 and a high of $0.1211.

By 24 March, the volatility had begun to settle and ADAO rose to a high of $0.08807. After dropping the following day to a low of $0.05684, the coin has since traded sideways with peaks of $0.07011 on the 28 March and $0.06768 on the 2 April followed by corresponding lows of $0.0475 on 31 March and $0.05038 on 3 April. The current price of ADAO stands at $0.05789 as of 7 April 2022.

According to CoinGecko, the coin has gained 9% in the seven days leading up to the 7 April 2022 and the 5% in the 14 days leading up to 7 April 2022.

There is a maximum supply of 500 million ADAO and a circulating supply of 18 million as of 7 April – and the project has a market cap of $1.063m.

What is the affect of this information on an Adadao price prediction?

Adadao price prediction: What’s next for the project?

When looking at price predictions its crucial to keep in mind that while they can be useful as an indicator of the future trend that a coin could follow, they should be regarded as possibilities rather than absolutes.

It is especially importan to remember this when looking at long-term forecasts because these can often be wrong. This is due to the inherent volatility of the market, but also the many other variables that could impact the future price of the coin.

With this in mind, let’s look at the ADAO price prediction of three online forecasters.

Gov Capital offers a bearish forecast, suggesting Adadao could go down to nothing by 22 May this year, although it foresees a price of $0.03116 in a year’s time.

DigitalCoinPrice predicts the Adadao price prediction for 2022 could be an average of $0.0726. The platform thinks the Adadao coin price prediction for 2023 could be $0.0804. The website’s Adadao price prediction for 2025 stands at $0.11, while the its Adadao price prediction for 2030 is $0.25.

PricePrediction suggest the coin will average $0.098 by 2022, before rising to an average price of $0.32 by 2025 and to $2.18 by 2030.

FAQs

How many Adadao are there?

There is a maximum supply of 500 million ADAO and a circulating supply of 18 million.

Is Adadao a good investment?

It is perhaps too early to tell whether the project will be successful. So far, Adadao has not performed particularly well, and the project has a long way to go to prove itself as a frontrunner on the DeFi scene. 

Always remember, if you do choose to invest in it, that crypto is highly volatile and can go down as well as up. 

Will Adadao go up?

Some price prediction forecasters think the token will go up while others think it will go down. However, always remember that forecasts, especially long-term ones, can be wrong. 

Should I invest in Adadao?

Investing is a highly personal endeavour, dependent on your individual investment goals. Remember to do research and keep up-to-date on any developments in the Adadao ecoystem. 

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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