Cardano is a blockchain protocol that is considered a favorite among retail crypto investors. Cryptocurrency has an extremely enthusiastic following and the blockchain development team is praised for their quiet and excellent work. But can Cardano really outperform competitors like Ethereum and Solana and become the most widely used network in the future?
In this article, we want to answer the question of whether Cardano can become the most used protocol in the crypto market in 5 years.
What is Cardan?
Cardano is a blockchain protocol that uses the Proof-of-Stake consensus mechanism and is considered one of the most efficient networks on the market. Cardano relies on a continuous and long-term development strategy. Cardano’s network token is ADA.
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Cardano has been around since 2017 and has been one of the most successful and well-known cryptocurrencies on the market for many years. In 2021, smart contracts were implemented in Cardano. ADA is facing massive price increases. The development of Cardano takes place at different stages. We are currently working on improving the scalability of Cardano.
What is the future potential of Cardano?
In the future, Cardano may become the most widely used protocol in the crypto market. No wonder Cardano is called the killer of Ethereum. The network is characterized by a combination of security, scalability and decentralization. First of all, Cardano uses a scientific approach to further development.
With further evidence-based incremental development, Cardano is expected to remain one of the technically best blockchains on the market for the next few years. At every stage, Cardano must gain an advantage over other blockchains. The next step, Basho, is to greatly increase the scalability of the blockchain.
Cardano is on its way to becoming the fastest blockchain on the market. Presumably, up to 100,000 transactions per second will soon be possible. This would give Cardano an extreme boost as a network and make it one if not the most popular blockchain.
Can Cardano replace Ethereum?
Ethereum continues to lead the way in decentralized applications, including DeFi and NFT. The Ethereum blockchain was the first blockchain to use smart contracts, and as such, it has created an extremely large ecosystem in recent years. But Ethereum is struggling with transaction speed issues and high gas fees.
Cardano is much more efficient as a network than Ethereum and has an extremely high level of security. The technical superiority and good prospects for the future lead many analysts to argue that Cardano can indeed replace Ethereum in the next few years. However, for this to happen, many more applications need to be built on the Cardano blockchain in the future. The difference in network size between Ethereum and Cardano is still huge.
Where will Cardano be in 5 years?
In 2022, the next phase of Cardano development began. Increasing scalability during the development phase of basho should be a solution that could lead to the explosion of Cardano in the coming months and years.
The Solana and Avalanche blockchains have grown significantly in 2021. Because these blockchains have a clear advantage over Cardano, Ethereum and other blockchains. They are extremely scalable. This puts Solana in the top 10 and Avalanche right behind the top 10 most valuable cryptocurrencies.
If Cardano significantly improves its scalability and continues to excel in areas such as decentralization and security, it could become the most comprehensive blockchain on the market. This is why the long-term potential of Cardano is so huge. If development continues as planned, the Cardano network could explode and even get close to Ethereum in 5 years.
What are the risks with Cardano?
For a long time, further development of Cardano was considered too slow and academic. The use case was missing. Meanwhile, Ethereum has greatly expanded its ecosystem and is the backbone of DeFi and NFT, both areas have experienced huge hype over the past 2 years and continue to grow.
Cardano has taken an important step in the right direction with the introduction of smart contracts in 2021. Since then, the number of transactions carried out on the Cardano blockchain has increased significantly. This sets the stage for Cardano’s future dominance.
However, Cardano must first prove that it can ever reach the size of Ethereum. The network needs to show that development is progressing at a certain pace and that Cardano can be the best option for dApps. Ethereum, for example, could significantly increase its scalability with the upgrade to Ethereum 2.0.
What price can ADA reach?
The ADA token has fallen heavily over the past few months. The reason for this was the bear market, due to which the prices of the cryptocurrency fell sharply. This was the case with Cardano (ADA). The exchange rate fell from $3 in November to less than $0.44 in June. Over the past few weeks, the price has risen to over $0.50.
ADA price for the last 12 months, source: Coinmarketcap
Many analysts believe that Cardano has the potential for a price above $100 in the future. However, for this Cardano will have to grow significantly in the next few years, as well as catch up with Ethereum in size and importance.
Should you invest in Cardano in the future?
Investment in Cardano (ADA) is recommended now because the potential is huge, but the price is still very low due to the bear market. If Cardano develops in line with the ideas of the optimists, there could be huge investment opportunities in the ADA token. In the next bull market, we could very easily see an extreme rise in prices.
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Denial of responsibility: Cardano Feed is a decentralized news aggregator that allows journalists, influencers, editors, publishers, websites, and community members to share news about the Cardano ecosystem. The user should always do their own research and none of these articles constitute financial advice. The content is for informational purposes only and does not necessarily represent our opinion.