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Although this isn’t the best time for cryptocurrencies, due to the sharp selloff seen in 2022, several innovative and intriguing projects have emerged over the years that are worth keeping an eye on. Bitcoin is under pressure right now, which is what drives crypto traders and investors toward other digital coins - and one of them is Cardano.
The 9th largest token by market capitalization, Cardano is one of the most popular ecosystems in the industry, despite the fact that it was actually launched not too long ago. This is mainly thanks to its impressive rise and also due to the elevated volatility witnessed in the token’s price. Let’s take a look at some basics any crypto enthusiast should know about ADA.
Beginnings of Cardano
Cardano was founded in 2017, and it is named after the 16th-century Italian polymath Gerolamo Cardano. The token powering the Cardano blockchain – ADA, was also named after a 19th-century mathematician Ada Lovelace, known as the first computer programmer.
Charles Hoskinson is the founder of Cardano and he is also a co-founder of the Ethereum network, the second-largest blockchain in the market. He has been involved in crypto since 2011, including mining and trading, and in 2013 he even composed a Bitcoin course, which has already been consumed by about 80,000 people curious about crypto.
ADA is available for trading with brokers like GFund Assets, and there are many traders out there who are currently buying and selling ADA coins or derivatives. At the same time, several advantages of the blockchain make Cardano such a competitive project.
Advantages of the Cardano ecosystem
Cardano was one of the first projects to successfully use a proof-of-stake consensus mechanism, a solution that’s less energy intensive compared to proof-of-work. This ecosystem has academic rigor, meaning all the technology developed goes through a process of peer-reviewed research before being validated.
An important milestone for the project was reached in August 2021, when the Alonzo hard fork was implemented. That is the point when smart contracts were brought to the blockchain, causing the ADA token to surge in value in the following month.
Another important fork is Vasil, named after the Bulgarian mathematician Vasil Dabov. It was initially scheduled to happen in June 2022 but has been postponed several times since then. Once implemented, it will introduce several upgrades to the blockchain’s smart contract programming language Plutus, and also increase the network’s capacity.
Current situation of ADA token
Based on the analysis of experts from GFund Assets, the Cardano token (ADA) has been declining since the last quarter of 2021. Priced at approximately at 31 cents at the time of writing, it trades at levels not seen since January last year.
Like all the other major tokens out there, ADA also went through a series of booms and busts. The highest token value was $2.96, which drove the market capitalization to $95 billion. All the tokens in circulation are now worth over $10 billion, keeping Cardano among the largest crypto projects. Unfortunately for ADA bulls, this cryptocurrency continues to be in a bear market and there are still no major signs the tide might turn to the upside.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.