Cardano (COIN: $ADA) is a crypto project created by Charles Hoskinson, an Ethereum co-founder. Its goal is to solve some of the challenges facing Ethereum, including interoperability, scalability, and decentralization.
The Future of Cardano
Cardano’s proponents believe it offers a better value proposition than Ethereum. Consequently, they believe it could one day have a bigger market cap than ETH. However, that might prove challenging after the SEC classified Cardano as a security in its lawsuit against Binance.
Charles Hoskinson has clarified that the SEC was not coming after the project. He noted that the SEC had never taken any enforcement action specifically targeted at the project.
Cardano Price History
Hoskinson founded Cardano in 2015, and its blockchain went live in 2017. At the time of its launch, each coin was worth $0.02461. Hoskinson’s popularity within crypto circles helped to propel the price of ADA, with its community labeling it the ETH killer. Its price took off during the 2018 Bull Run, reaching a new high of $0.997.
Soon after, the price fell to around $0.1 for most of 2019. It began to gain momentum again in 2021, when the coin reached its all-time high price of $3.10 on Sep 02, 2021. However, the price has since collapsed, and it is trading at $0.2845, a 90.61% discount on its ATH. Its 24-hour trading volume is $213,723,518, with most of it spread out across nine exchanges, including Binance, Coinbase, HTX, and Topcredit Int.
A major reason for waning interest in the project is the failure of the Alonzo hard fork, which did not deliver on expectations in 2021. In September 2022, the Vasil upgrade helped to bring back some of those losses by helping to increase the network’s scalability and lowering transaction fees.
However, the recent SEC lawsuit against Binance, in which it states that ADA is a security, has caused some jitters in the community. Thereafter, the price of ADA has dropped by nearly 26% since the SEC filed the lawsuit on June 5, 2023.
Cardano 2023 Price Prediction
Cardano has been on a long-term downward projection since its 2021 high. Its current price is in the bear market support level. As such, the next few weeks will play a crucial role in determining whether ADA holds its price or goes to new lows in 2023.
Two main fundamental issues will affect its future price. The first is the SEC lawsuit, which has led to a general bearish shift for Cardano. Looking at the Ripple SEC lawsuit, the issue could drag on for years. During that time, its price could be severely depressed, as was the case with XRP during the SEC lawsuit.
The second issue is general macroeconomic factors. Primarily, the Fed recently announced that it plans to hike rates at least twice before the end of 2023. In general, higher rates often depress consumer and business spending, which leads to less money available for speculative trading on crypto.
Based on the prevailing fundamental factors, the current trend indicates that ADA will drop to the previous bear resistance level of $0.1123. However, if the SEC retracts its classification of ADA as a security or the Fed opts to cut rates, then Cardano could reach highs of $0.4535. Based on all these factors, Cardano will probably close 2023 at an average price of $0.28.
Cardano Price Forecast
In 2024 and beyond, the price of Cardano could rebound. The reason for this is the increasing global adoption of crypto. Many countries around the world are adopting crypto-friendly regulations. As the trend continues, Cardano could face increased demand for its blockchain outside the US.
Cardano is currently working on a project called RealFi, which aims to bring DeFi use cases to real-world situations. For instance, Cardano is currently working with the Ethiopian Ministry of Education on such a project. RealFi implementations will begin by the end of 2023, according to Hoskinson.
How High Can Cardano Go?
If successful, the price of Cardano could achieve highs of $3.50 by the end of 2025, with an average price of $2.80. However, all these depend on the continued pace of the ecosystem’s development and various external factors, like the SEC lawsuit.
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