Finance
Cardano Price Forecast as $500 Million Trading Volume Floods In – Can ADA Reach $1?
Published
1 year agoon
By
New Yorker
The Cardano price has risen by 6% in the past 24 hours, surging to $0.404805 as the coin’s 24-hour trading volume surpasses $600 million. This is its highest in nearly two weeks, with ADA also up by 8% in seven days and by 59% in a month.
This makes ADA one of the best-performing major cryptocurrencies in the market, with growth in the usage of the Cardano-based stablecoin DJED one of the biggest factors in its recent growth. And with the rise of DJED also pointing to the growing utility of Cardano itself, it signals the possibility that ADA may end up being one of the biggest winners in the market this year.
Cardano Price Forecast as $600 Million Trading Volume Floods In – Can ADA Reach $1?
ADA’s indicators show that the altcoin is in the middle of a pronounced upswing. Its relative strength index (purple) has jumped to 70 or above in the past couple of weeks and it remains there, signaling ongoing positive momentum.
Even more promisingly, the coin’s 30-day moving average (red) is getting closer to rising above its 200-day average (blue). If it were to cross the longer-term average, this would form a ‘golden cross,’ which potentially signals an even bigger breakout.
In other words, there’s a real chance that ADA could easily rise beyond its current level in the next few days, moving from $0.404805 to $0.5 and beyond.
And there are plenty of reasons to be optimistic about ADA and Cardano right now. Most notably, the launch of the Cardano-based Djed (DJED) stablecoin has caused a massive spike in demand for ADA.
Because Djed is an over-collateralized stablecoin, this means it requires more backing in cryptocurrencies than it’s nominally worth. Much of this backing is currently made up of ADA, with 28.3 million ADA currently sitting in its reserves (and rising).
Needless to say, Djed’s reserves will grow with the growing demand of the stablecoin, with Cardano-based DEXes MuesliSwap and Minswap already listing the new stablecoin. As such, more ADA will be taken from the market and put into these reserves, thereby reducing the circulating supply of ADA and boosting its price.
The market is already witnessing this effect now, seeing as how ADA has risen so strongly since Djed has launched. And given how Djed has been engineered, the stablecoin is likely to attract plenty of converts.
In particular, Djed is backed by a reserve of multiple cryptocurrencies and will have an over-collateralization ratio of between 400% and 800%. This setup is intended to protect Djed against many of the risks highlighted by Terra, which infamously collapsed last year.
At the same time, Djed has been launched in conjunction with Shen (SHEN), which functions specifically as one of its main reserve tokens. Interestingly, users will have to pay a fee in ADA when either minting or burning SHEN (or DJED), something which will further increase demand for ADA as time progresses.
Cardano Upgrades
It’s also worth pointing out that Djed’s launch opens a chapter in the history of Cardano during which it offers more utility to the crypto ecosystem and as a result, enjoys more adoption. For example, the network’s total value locked in has grown from $48.95 million on January 1 to $97.05 million today, representing an increase of around 98%.
Put differently, Cardano’s value as a network has doubled in a month, and, likely, it will only grow from here on out. This process will be helped by an important upgrade scheduled for this month, when Cardano will update its Plutus smart contract language.
In a nutshell, the planned fork will “support ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-chain apps.” This will enable Cardano to benefit from interoperability between itself and other chains, such as Bitcoin and Ethereum.
We could therefore expect the Cardano ecosystem to expand considerably, with cross-chain compatibility meaning that dApps built for one chain can easily be retooled to operate on Cardano as well. This will incentivize greater development over time, with teams knowing that their platforms will be exposed to a greater potential user base.
Even now, Cardano’s ecosystem has been growing steadily, with more than 1,100 apps and projects now building on its network, as well as more than 110 projects already launched. This also includes over 5,500 Plutus scripts (i.e. Cardano’s version of smart contracts), something which indicates actual usage of the network.
And given this month’s update, the number of running Plutus scripts will undoubtedly grow even further. Back in the middle of September, these totaled only just over 3,200, with the ensuing increase indicating just how quickly Cardano is developing.
In light of all this, ambitious medium- and long-term price targets for ADA are justifiable. The altcoin’s record high is $3.09, set back in September 2021 when Cardano wasn’t even half as useful — or used — as a network.
Accordingly, assuming the general recovery of the wider cryptocurrency market, it becomes very feasible that ADA could return to $1 at some point in the next few months.
Some experts have set a long-term target of around $5.30 for the coin, as well as a target of $2.45 by 2025. These are arguably conservative forecasts, given that they’re averages, and it’s entirely conceivable that ADA could rise significantly higher.
For instance, Cardano’s total value locked in has really only just started growing. At $97.05 million, it remains only 0.3% of Ethereum’s, indicating just how much further it has to rise.
Yet the thing is, ADA is still the eighth-biggest cryptocurrency by market cap, despite Cardano being so small at the moment. If Cardano were to continue seeing higher usage and adoption, ADA could easily rise even further up the rankings.
Buy ADA Now
Cardano Alternatives
If you’re looking for other high-potential crypto projects alongside ADA, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Source: crypto news
You may like
The $24,999 Fisker Ocean Might Not Actually Exist
FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison
Angela Rayner throws down gauntlet to Tory critics of her tax affairs
Tropicana Field sold out for Tampa Bay Rays Opening Day
FTX fraudster Sam Bankman-Fried sentenced to 25 years in prison
Baltimore Lost More Than a Bridge
King Charles Is ‘Utterly Determined’ to Show Unity Among the Royal Family Amid Health Battles
Living with an anti-reunification North Korea – Asia Times
Los Angeles Theatre Week Provides Access to Affordable Productions
Thousands of phones and routers swept into proxy service, unbeknownst to users
FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison
It’s Up to Prince William to Protect Queen Elizabeth’s Legacy: Commentator
Fallen crypto mogul Sam Bankman-Fried sentenced to 25 years in prison
The Earth Will Feast on Dead Cicadas
The Red Sox kick off a season without expectation, after a winter of failing to meet anyone’s
Trending
-
Travel23 hours ago
Hotel development across Africa.
-
Tech16 hours ago
Thousands of servers hacked in ongoing attack targeting Ray AI framework
-
Travel19 hours ago
The Toll Road Companion: Mautgebühren’s Contribution to European Roads
-
Auto19 hours ago
The 670-HP Porsche Panamera Turbo E-Hybrid Costs $192,995
-
News18 hours ago
Kate Middleton’s Cancer Battle Has Prince William Feeling ‘Helpless and Scared’ — Report
-
News19 hours ago
‘The Masked Singer’ Season 11: Who Is Lizard? Fans Think It’s the ‘Thong Song’ Singer
-
News20 hours ago
King Charles’ Cancer Treatment Is ‘Going Well’ But He Finds Restrictions ‘Frustrating,’ Expert Says
-
Auto20 hours ago
Pagani’s Carbon Fiber Huayra R Driving Simulator Is Preposterous