💲 Intro
Cardano is an open-source 3rd-generation blockchain protocol that is designed to provide secure, scalable, and sustainable environments for decentralized applications (dApp).
From inception, its aim was to solve some of the problems that existed with the incumbent networks such as Bitcoin(BTC) and Ethereum(ETH), as the first and second-generation protocols, though ETH 2.0 is considered to fall under the 3rd-gen-bucket.
In this post, we’ll be unpacking what Cardano (ADA) is, its benefits, Tokenomics, a price prediction model, and the future of its fledgling ecosystem.
🧩 Table of Contents
📜 What is Cardano?
Cardano (ADA) Is the first peer-reviewed blockchain platform, led by its venerable founder Charles Hoskinson, a former Ph.D. candidate that dropped out of his Ph.D. program to focus on his work in web3.
His background was originally in analytic number theory before pivoting to focus on cryptography at the Metropolitan State University of Denver (MSU Denver) and the University of Colorado Boulder (CU Boulder).
Cardano and its subsidiaries were co-founded with Jeremey Wood as an early employee of ETH in 2013. In 2015, Jeremey started Input Output with Hoskinson, the parent company of Cardano. The company has two divisions: The first is the Switzerland-based non-profit called The Cardano Foundation, and the for-profit ORG is called IOHK and Emurgo.
⚖️ Benefits of Cardano
Hoskinson was one of the co-founders of Ethereum (ETH), which was also built on scientific philosophy and is now powered by a proof-of-stake(PoS) consensus algorithm similar to Cardano.
Before the 2022 update of ETH 2.0, they used a proof-of-work(PoW) consensus mechanism. Proof-of-stake(PoS) has many core benefits over proof-of-work, such as less energy consumption, lower barriers to entry and reduced hardware requirements for validators, and reduced centralization risks, among others.
Within the Cardano network, blocks are validated by the local machines of the stakeholders or holders of the tokens that are being used to stake their coins as collateral to validate the blocks.
Unlike many competing layer-1 networks, Cardano was designed to be highly scalable and can handle a large number of transactions without slowing down or limiting performance. This is typically caused by high throughput or transaction volumes - the Cardano network can handle 250 TPS (transactions per second).
Cardano states that building their network with Haskell allows individual components to be composed into complex and powerful solutions in isolation from other components, which is a similar design to component-based development in React.
V1 of Cardano was pushed to its mainet in 2017– Some of the pain points Cardano is solving with their blockchain platform also include building the most advanced features of any existing blockchain to support enterprise-level business cases and infrastructure for financial and social dApps on a global scale.
💱 Cardano Tokenomics
Cardano’s native token ADA has a maximum supply of 45 billion tokens, and there are currently 33.5 billion in circulation. The TVL (Total value Locked) is around ~$76 million USD as of 2-2-2022.
Cardano promises annual returns of between 5%-6% with a monetary expansion rate of 0.3%, per epoch, devoid of any bounding period.
💹 Cardano(ADA) Price Prediction For 2023
Cardano (ADA) is currently trading at around $0.40 and is expected to increase in value over the next few years. Analysts predict that Cardano could reach as high as $10 by the end of 2023, but most models have the asset hovering closer to <= $0.70 by EOY 2023.
This would represent a significant increase in value and could make Cardano one of the most valuable cryptocurrencies in the world.
Cardano is currently the sixth-largest cryptocurrency by market capitalization, having increased in value by 61.79% YTD, outperforming ETH and BTC thus far in 2023, growing by roughly 1100%. At the beginning of 2022, ADA was trading at $2.28, which reflects a decrease of 80% since the beginning of 2022. During the peak of the 2021 bull run, ADA reached a high exceeding $3.00.
Additional key measures of success are the number of new wallets created to service ADA, with roughly 30,000 wallets, and 20,000 new staking addresses. Additionally, the amount of Cardano smart contracts deployed surpassed 4,000 for the first time.
🏦 Cardano Prediction Table
| Year |
Min-Price |
AVG Price |
Max Price |
| 2023 |
$0.559944 |
$0.559944 |
$0.659934 |
| 2024 |
$0.819918 |
$0.849915 |
$0.949905 |
| 2025 |
$1.11 |
$1.11 |
$1.44 |
| 2026 |
$1.53 |
$1.57 |
$1.94 |
| 2027 |
$2.27 |
$2.33 |
$2.63 |
| 2028 |
$3.26 |
$3.35 |
$3.86 |
| 2029 |
$4.57 |
$4.73 |
$5.54 |
The model presented in the table above is from Chagerlly. For more information, please check out this link.
📊 ADA Technical Analysis– ADA PERPETUAL FUTURES CONTRACT
🌐 Future of the Cardano Ecosystem
Cardano is currently in the process of developing out its own ecosystem, which will include a range of decentralized applications(dApps) to compete with the ecosystem growth of other networks such as Solana, and Near.
By allowing developers to create innovative applications and services on the Cardano network, it opens up the ecosystem to attract user groups from other blockchains and will fundamentally allow for innovation within the ecosystem itself.
One of the key factors driving interest in ADA in Q1 2023 includes Djed by Coti Network, Cardano’s highly anticipated algorithmic stablecoin. Djed is an overcollateralized stablecoin that is pegged to the US dollar. As of the date this post was finalized, DJED has attracted 29.9 million ADA, which reflects a collateral ratio of 643%, of a total of 800%. There are 1.86 million DJED in circulation, which reflects a trading value of 2.54 ADA, which is roughly $1.02 USD. Broadly speaking, The Cardano community had a shared sentiment that the cost to mint tokens was too high – For those interested, Djed can now be acquired on the secondary market.
Cardano underwent an upgrade on September 22, 2022, called Vasil, with the goal of increasing throughput, capacity, as well as scalability – After multiple delays, they were able to push the full Vasil update live. Additionally, they concurrently released the Plutus V2 cost model with the goal of reducing transaction fees..
🌎 🎖️ Final Thoughts
In 2022, Cardano (ADA) was the best-performing crypto asset with a return of +833%. By 2023, ADA price will likely continue to see high interest, as well as high volatility, which is typical of all cryptocurrencies and blockchain networks.
Based on the price prediction chart we reviewed earlier in this post, the price of ADA is likely to continue to increase over time with the release of the Djed stablecoin, Vasil update, and ecosystem growth to compete with other layer-1 networks and protocols. A founder who is also a media personality has the benefit of gaining exposure and awareness for their project, as has been the case with Cardano.
Recently, Hoskinson took to his YouTube channel to discuss the current state of journalism and proposed a possible acquisition of CoinDesk due to ongoing problems caused by collateral damage following the collapse of FTX.
Tracking Cardano’s YouTube channel is a sound idea for those who plan to invest in the company or keep up with the company’s actions, changes, and strategic goals. I would also like to clarify the following statement. Cryptocurrency is a highly speculative illiquid asset, and I do not suggest investing in it without doing your du-diligence. Until the industry is more mature and regulated, any crypto-based investment must be treated as a gamble, literally.
Keep an eye out for my post covering the Near Protocol: an overview of the network and price prediction. As a Product Manager in web3, I have the most personal experience building on top of the Near Protocol, so my perspective comes from someone who has built projects within its ecosystem.
The overall utility of token-based systems is unquestionable, and I see Cardano as the prototypical company that will continue to influence the greatest amount of change in the foreseeable future; Among the likes and impacts of BTC and ETH.
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