YEREVAN (CoinChapter.com) — As Cardano’s ADA slowly gets back into the game, several people on Reddit are discussing the prospects of a 500% ADA price surge. Let’s discuss whether or not such a massive rally for cryptocurrency is possible in the future.
First, the good news: Cardano (ADA) price is surging
For the uninitiated, Cardano is one of the most popular public blockchain and cryptocurrency projects in the market. Charles Hoskinson, who was one of the co-founders of Ethereum (ETH), initiated the development of Cardano in 2015 after being pushed out of the project. He subsequently launched the platform in 2017 with ADA as its native token.
Posing as a competitor to ETH, or Ethereum-killer, as it was called, ADA quickly became one of the most-trades tokens. Growing interest among investors quickly put it among the top 5 cryptos by market capitalization.
With a market cap of around $12 billion, it is ranked 8th, below Solana (SOL) and above Dogecoin (DOGE).
Continuous investor support also saw ADA reach an all-time high of $3.10 on Sept. 2, 2021. Although it remains almost 90% below those figures, Cardano seems to be getting some of the lost support back.
Over the past month alone, ADA has rallied over 40%, going from $0.2562 at the beginning of October to $0.3742 on Nov. 7. It currently trades at $0.3457.
According to DeFiLlama, the total value locked (TVL) in Cardano’s DeFi has risen by 39% over the last month. Calculating since December 2022, its TVL has seen around 340% jump.
Cardano (ADA) remains relevant
As mentioned above, ADA has had a lot going for it recently. And to say it comes as a surprise would be an exaggeration.
Many factors make Cardano attractive for investors. For one, the fact that Charles Hoskinson emphasizes a scientific and peer-reviewed approach helps enhance its credibility and robustness in the eyes of investors.
Cardano is also a Proof of Stake (PoS) consensus mechanism, a more secure and energy-efficient method for validating transactions and adding new blocks to the blockchain. Consensus mechanisms like PoS play a crucial role in a network’s security.
Moreover, traders and developers have responded positively to Cardano’s scalable infrastructure and its emphasis on interoperability with other blockchain projects.
Not to say the least, its devoted community, aka “Cardano Army,” has kept the project in the limelight.
But will the Cardano momentum last to $500?
If the recent ADA price surge makes Cardano seem like a winner, hold your horses. The project has faced several criticisms over the years. Some of these persist even today.
For one, critics have pointed out that Cardano is not decentralized enough despite Hoskinson’s claims. While the project has attained decentralization in many aspects, the three founding entities still retain a notable degree of power in its Governance.
“It’s effectively becoming a puppet state for Charles with the committee and everything. Everything else is fine to me, I do like the slow and steady approach. The biggest danger for Cardano at the moment is a system that will be in its core very centralized,”one trader criticized.
However, the devs have promised to tackle this issue by introducing the Cardano Improvement Proposal (CIP 1694) in its Voltaire upgrade era.
There is also a serious skepticism surrounding the privacy-focused Cardano sidechain, Midnight. Others have pointed out that Hoskinson and his team are doing things super slow, allowing other projects to surpass Cardano.
As many people pointed out in the comments, there is no chance ADA can see figures anywhere close to the $500 mark. Charles Hoskinson, according to some, is not trustworthy enough as a leader.
Meanwhile, according to The Coin Perspective, Cardano’s total market cap would reach $17.5 trillion if it attained that price range. This marks over 1,430x growth from today’s figures.
In comparison, Bitcoin’s market cap today stands at less than $692 billion.
Any rise in Cardano price will see thousands of early investors lock in their profits, causing ADA to tank again. So, while the token can give serious profits to those buying cheap, the $500 dream is unrealistic.