Cardano price prediction 2020
Cardano is a technologically advanced blockchain platform with an attractive coin, ADA. So what is Cardano’s price prediction for 2020?
Cardano (and its ADA coin) is an unusual and interesting cryptocurrency that has in the past flown a little below the radar. Yet it is now ranked 11th in the world’s cryptocurrencies with a market capitalisation of $11bn (£8.45bn).
Its champions claim that it is more advanced and future proof than its main rivals, and it is this technological superiority and agility that will propel it into the top 10 cryptocurrencies and make it a good long-term investment.
So what then are our Cardano price predictions for 2020 and beyond? Is Cardano a good investment? How does its coin ADA work? And what are our ADA 2020 price predictions?
First it is worth exploring a bit of background information about Cardano.
Cardano was launched in 2015, the brainchild of Charles Hoskinson, who incidentally was one of the co-founders of Ethereum. Unusually for a crypto-based platform, Cardano’s originators took their time in perfecting their offering and so its coin, ADA, had a gestation period of around two years. Eventually, in October 2017, Cardano launched ADA and watched as the price of the coin instantly began to soar.
Third generation crypto
Some pundits have described Cardano as a third generation cryptocurrency. The theory runs that the first generation was Bitcoin, a basic digital token, but one dogged by scalability and technological issues. The second generation, best illustrated by 0'>Ethereum, added functionality such as smart contracts and offered enhanced scalability, but still not enough to take its blockchain mainstream.
The third generation, of which Cardano is a prime example, emanates from open source projects where teams of scientists and technologists collaborate on tackling the key issues that prevent blockchain from being able to scale. Due to this, many developers have a great deal of affection for Cardano as they consider it an attempt to move the blockchain forwards.
Cardano does have much in common with Ethereum. It is a platform designed to enable organisations, such as financial institutions, to run decentralised applications. It has three layers. First, its ADA coin. Second, a layer that handles the smart contracts, and third a layer that runs decentralised applications or Dapps. Just as with Ethereum the coin Ether is used to pay for hosting and other services on the network, so the same is true for ADA and Cardano. Just like Ether too, the ADA is available to trade externally and can be used to pay for and buy things online.
Cardano’s champions claim that its open-source nature and backing from academics gives it a massive advantage. Its extended bandwidth enables it to process significantly more transactions per second than its main rivals.
Another interesting thing about Cardano is that it has its own wallet called Daedalus, which is more advanced than the wallets that are available for, say, Bitcoin. For example, it comes with back-up features which enable users to recover their funds at any time. Also Daedalus does not hold a user's keys, rather it gives them full control of their money.
Recently there has been a lot of speculation that Cardano is about to launch a stablecoin. These are coins that are pegged to a cryptocurrency, fiat money, or to exchange-traded commodities. The idea being that they offer a degree of stability to enable users to make everyday purchases and not have to worry about the prices they have paid fluctuating.
This launch would be very good news for both Cardano and the price of ADA. Charles Hoskinson has said that the stablecoin could use ADA, as part of its central bank mechanism. This is likely to increase both ADA coin's price and its use-cases.
Cardano price prediction 2020
So what then are the price predictions for Cardano for 2020?
Things are certainly looking positive. On February 13, ADA coin started the day with a seven-month high price rising by 5 per cent to reach $0.72. In the past 30 days it has surged by nearly 82 per cent.
Part of this growth is due to Cardano mirroring the success of other cryptocurrencies such as 0'>Bitcoin and 0'>Ethereum, which have also made a solid start to 2020. However, the news of the stablecoin has helped push Cardano higher than it otherwise might have gone.
Another factor that might impact on the price of Cardano is its method of mining. It uses a proof-of-stake algorithm which has now been adopted by other platforms such as Ethereum and is seen as superior and more advanced than the proof-of-work method used by Bitcoin.
There is another interesting quirk that might impact on the price of Cardano and that is that it is very popular in Japan. In fact it is estimated that as many as 80 per cent of ADA coin owners are residents in that country. So in some ways the future for Cardano is strongly tied to the economic future for Japan.
So what then do the analysts think about the future of Cardano? What are their Cardano price predictions?
Cardano future price
The big discussion among crypto watchers appears to be when ADA will breach the $1 mark. It has been above this figure in the crypto halcyon days of 2017. CoinSwitch takes a bullish view saying that $1 is possible this year and that $2 will follow in 2023, and $3 in 2025. Use The Bitcoin predicts “this year will be bright for ADA, and we expect the coin to surge upwards to reach the $1 mark. You have to go back to the 2017 bull market to find the last time ADA was trading at that price.”
It is a view echoed by popular crypto analyst Mr Vyas who believes that ADA will rise to $5 in five years. He does caveat this by saying that this is only possible if Cardano hits all of its development targets.
Cryptonewsz takes a slightly more pessimistic view. It thinks that ADA will hit $1 again, but not until 2022.
So Is Cardona a good investment? What will the ADA price rise to? Only time will tell, but it seems that the quirky but technologically advanced Cardano platform has a bright future.