Cardano (ADA) price prediction: Can it be the Solana of 2022?

Highlights

• Cardano operates in an overcrowded space where Ethereum rules with its blockchain network
• Cardano’s low price per token and its use in creation of NFTs may pique the interest of investors
• Solana’s 2021 performance remains a benchmark for networks like Cardano

Cardano was not the best performing cryptocurrency of 2021. Though this blockchain network that is competing with the likes of Ethereum, Solana, and Avalanche may have returned less as compared with a few others, 2022 may be the year of sharp uptick in value.

Price of any cryptocurrency depends on demand for the token on exchanges. The demand for the token like ADA of Cardano rests on how well the project is performing. For example, if users are rushing to the Axie Infinity game in huge numbers, the native AXS token is very likely to rise in value. Will ADA script history in 2022? Let’s look at some key elements.

Also read: 5 cryptos to explore in January 2022

What is Cardano blockchain network?

To understand how Cardano differs from other blockchains of Bitcoin and Ethereum, it is important to know the underlying consensus mechanism.

Bitcoin, the foremost crypto, started with the proof-of-work mechanism. Here, the users could validate a transaction without having to stake the crypto holding. Though Bitcoin attained glory as an alternate to investing in stocks or gold, the proof-of-work mechanism’s excessive use of power remains the most controversial bit.

Cardano came up with the newer proof-of-stake mechanism. Here, the validators must stake their crypto holding in order to become a part of the transaction. The need of computation power decreased with the feature, and hence a relative saving on electricity consumption could be achieved.

Aside from that, Cardano has more or less the same offerings. Developers can build decentralized apps, and from creating new tokens to launching non-fungible tokens (NFTs), Cardano’s platform provides a range of services.

Also read: The top crypto gainers of 2021, and a couple of underperformers

What is ADA crypto?

ADA is a native token. Every blockchain-based project has a native token to facilitate transactions over the platform. Ethereum uses Ether, which rose almost 400 per cent in 2021.

Users of Cardano’s platform must use ADA to pay network fee. One of the top ten cryptos by market cap, ADA is available on most crypto exchanges including Binance and Coinbase. ADA price is nearly US$1.3 as of now, with a market cap of over US$44 billion.

Cardano price prediction

Cardano price will depend on a range of factors in the near-to-medium term. First, the network, which underwent the famous Alonzo upgrade last year to make it ‘programmable’, has to find more takers for its distributed ledger services. For now, Ethereum remains the preferred choice for NFT minting.

Second, Cardano isn’t the only rival of Ethereum. Solana outperformed all other blockchain networks in 2021, with price skyrocketing from US$1.5 to US$170.

Data provided by CoinMarketCap.com

For now, Cardano price sits where Solana began from in 2021. Solana’s use in the decentralized finance (DeFi) space and for creating blockchain-based apps was the key factor behind the rise in value.

Cardano’s lifetime peak was nearly US$2.9, which it scaled in early September 2021. By that measure, it has lost value over the previous few months. However, if NFTs, DeFi and blockchain apps pick up in 2022, and Cardano serves as the service provider, the price may appreciate in the medium-to-long term.

Even if Cardano fails to repeat the 2021 history scripted by Solana, ADA price may reach a double-digit territory by the end 2022.

Also read: Cryptocurrencies vs. stock market: What can be the best pick for 2022?

Cardano (ADA) crypto price prediction: Can it be the Solana of 2022 ?

Viewpoint

There is a possibility that the blockchain world, comprising of assets like altcoins and NFTs, can find patronage in 2022. Last year was mostly speculative for cryptos. From here on, investors may want to know about the project before investing in its native token. By that count, Cardano may have the potential.