Here are the most important details about Cardano (ADA):
- Developed by Ethereum co-founder Charles Hoskinson in 2015
- Often referred to as a "third generation blockchain", the Cardano network is an evolution of the Ethereum platform
- The total number of Cardano tokens (ADA) is capped at 45 billion
- The platform takes a scientific, methodical approach to advancing blockchain technology
- Based on market capitalisation, Cardano (ADA) is one of the top ten strongest cryptocurrencies
Introducing Cardano (ADA)
In 2014, Charles Hoskinson, a co-founder of Ethereum, set out to develop his own blockchain platform after a disagreement over Ethereum's commercialisation. Launched in 2015, Cardano is hailed as an evolution in blockchain technology, earning the tagline "third-generation blockchain". It takes a scientific approach to prominent issues plaguing blockchain technology, such as scalability, interoperability, and sustainability. The further development and achievement of these goals is a joint effort by three independent entities: the Cardano Foundation, the tech firm EMURGO, and Input Output Hong Kong (IOHK).
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ADA Tokens: A cryptocurrency underpinned by the Cardano blockchain
ADA, the cryptocurrency simply known as Cardano, employs a Proof of Stake validation method. This method is about 99% more energy-efficient than mining in Proof of Work-based blockchains. Rather than mining, which demands heavy computational power to verify transactions, validators confirm transactions. This procedure is referred to as minting as opposed to mining. Essentially, validators pledge their own ADA tokens as collateral to verify transactions and create new tokens. ADA, the cryptocurrency of the Cardano blockchain, is used to cover transaction fees on the platform. The ADA tokens are named in honour of the mathematician Ada Lovelace.
Is ADA, the cryptocurrency of the Cardano platform, a coin or a token?
ADA, also known as Cardano, is a token, not a coin. It was meticulously developed as such within the Cardano blockchain. The distinction lies in the fact that coins can operate independently, whereas tokens rely on another platform for their creation. While coins are typically seen as currency or a means of payment, tokens, as digital assets, provide additional value.
Advancing blockchain through scientific methodology
Cardano's progressive approach is rooted in scientific principles. Developers use peer reviews to assess the potential impact of changes, tackling issues such as scalability, interoperability, and sustainability. Cardano's use of Proof of Stake validation makes it far more energy-efficient than Bitcoin's blockchain, which relies on traditional mining. Continuous development is ensured through rigorous research, systematic validation of findings, and methodical integration into existing procedures. For this, scientists from around the globe collaborate to examine the Cardano blockchain's challenges and functionalities. Independent experts test the results for applicability and potential impacts, validating proposed improvements. Scientific methods are then used to monitor the implementation of these improvements.
Cardano in action
At its core, like most blockchains, the Cardano platform functions as a digital database. Similar to Ethereum, the Cardano network can be used for smart contracts - contracts that automatically execute when specific conditions are met. This eliminates the need for a middleman, making transactions and contracts more efficient by removing the intermediary. In doing so, Cardano can make processes for small and medium-sized enterprises more time and cost-efficient.
Reaping benefits from Cardano through direct and indirect investments
Investors can put their money directly or indirectly into Cardano, or ADA tokens. Direct investments involve purchasing tokens, which are then stored in a wallet. Cryptocurrency platforms, which usually include a web wallet, make this process simpler. These platforms handle the storage of the private and public keys, the access data for your purchased cryptocurrencies. Bitpanda platform is one such way to buy ADA tokens.
Indirect investments in Cardano involve placing money into investment vehicles that mirror the Cardano price, such as Exchange Traded Nodes (ETN) or Contracts for Difference (CFD).
Investing in Cardano or ADA tokens with Bitpanda
To mitigate Cardano price fluctuations, regular purchases of ADA tokens are recommended. Experts refer to this strategy as the cost-average effect. High and low prices proportionally contribute to the total value of the investment, and with each investment, the average price increasingly mirrors the average Cardano price. Bitpanda Savings Plans offer a means for regular investments.
During the validation process of the Proof of Stake blockchain, validators pledge their own ADA tokens to confirm transactions and create new coins. Bitpanda users can benefit from this effect. With Bitpanda Staking, you'll receive weekly rewards in the form of new tokens for holding certain cryptocurrencies, including Cardano. These new tokens are also rewarded, creating a compound interest effect. By holding Cardano or ADA tokens, you can earn rewards between three and five percent.
If you're interested in diversifying your crypto portfolio further, consider investing in Cardano (ADA) and other cryptocurrencies such as Bitcoin or Ethereum with Bitpanda Crypto Indices. This approach allows you to spread your capital and risk across different coins and tokens.
Important facts about Cardano (ADA)
Here's what you should know about Cardano:
- The platform was developed in 2015 by Ethereum co-founder Charles Hoskinson
- The aim of the project, explained in the Cardano whitepaper, is to solve central problems of blockchain technology
- The development of the blockchain follows scientific standards and methods
- Experts from all over the world are involved in the further development of Cardano
- Due to its high market capitalisation, Cardano is one of the top ten financially strongest cryptocurrencies
- Like Ethereum, the Cardano blockchain can also be used for smart contracts, helping small and medium-sized enterprises to become more efficient
- Due to blockchain technology, it's practically impossible to hack Cardano
- Through the validation procedure Proof of Stake, Cardano is much more sustainable and energy-efficient than, for example, Bitcoin
- New tokens of the Cardano cryptocurrency are generated through a process called minting
- The maximum number of ADA is limited to 45 billion tokens
- Investors can indirectly invest in assets that reflect the Cardano price, or directly purchase ADA tokens
- ADA tokens can be stored in wallets, like other cryptocurrencies
Pricing dynamics of Cardano (ADA)
Like all cryptocurrencies, the value of Cardano is dictated by the consensus of its user community. This means that the Cardano price is fundamentally a function of supply and demand. Any change in either supply or demand triggers fluctuations in the Cardano price. Consequently, various factors play a part in shaping investors' interest in cryptocurrencies and ADA tokens in particular.
Cardano (ADA) price: Key milestones and noteworthy events
Cardano made its debut on the crypto market in 2017. At launch, its market capitalisation, the aggregate value of all circulating ADA tokens, was pegged at 600 million US dollars. The inaugural price for a single ADA token was set at 0.02 US dollars. In 2017, Cardano's value rose rapidly, leading to a market capitalisation of 10 billion US dollars. The peak Cardano price was recorded at 1.31 US dollars per ADA token. In early 2018, Cardano's market capitalisation momentarily hit 33 billion US dollars. However, the Cardano market capitalisation subsequently fell back to 10 billion US dollars, dragging the price per ADA token back down to 0.02 US dollars. The current all-time high for the Cardano price was marked in September 2021, with a price of 3.10 US dollars per ADA token.
The most important events and milestones of the ADA or Cardano price chart so far were:
- 2017: 0.02 $ / ADA
- 2017: 1.31 $ / ADA
- 2018: 0.02 $ / ADA
- May 2021: 2.46 $ / ADA
- July 2021: 1.06 $ / ADA
- September 2021: 3.10 $ / ADA
- January 2022: 1.60 $ / ADA
- December 2022: 0.24 $ / ADA
- January 2023: 0.40 $ / ADA
The evolution of Cardano's price
Launched in 2017 with an initial market price of 0.02 US dollars per ADA token, Cardano's value has since been influenced by various events in the crypto scene. Its all-time high was reached in September 2021, with an ADA token priced at 3.10 US dollars. By January 2023, the Cardano price stood at 0.40 US dollars per token.
Cardano's price trend during the 2017 crypto boom and the ensuing bear market
Following its release, Cardano's price witnessed a swift rise in the midst of the broad crypto hype of 2017. Remarkably, it achieved its then all-time high of 1.31 US dollars per ADA token in just 96 days. However, the price correction that began in 2018, accompanied by the bear market - a period characterised by falling prices across various assets within an asset class, caused the price to drop to 0.02 US dollars per ADA token.
Heightened interest from major corporations in cryptocurrencies like Cardano (ADA)
With increasing interest and significant investments from prominent companies in cryptocurrencies, the prices of various coins and tokens began to climb again in 2021. Consequently, the Cardano price chart initially saw a recovery to a price of 2.46 dollars per ADA token. After a brief correction phase, which saw the price dip to 1.06 dollars per token, Cardano's price hit its all-time high of 3.10 dollars per token in September 2021.
Inflation, geopolitical uncertainties, crypto bans in China, and regulatory proposals
News of governmental plans to regulate cryptocurrencies, coupled with a crypto ban in China, initiated a new bear market for cryptocurrencies. The war in Ukraine and rising inflation rates further diminished interest in crypto investments. The crash of the FTX crypto platform and the collapse of the Terra blockchain added to investor unease. As a result, the Cardano price chart witnessed a downturn, at one point dipping below a price of 0.30 dollars per ADA token. Nevertheless, by January 2023, the cryptocurrency had already managed to breach this barrier once more.
Predictions for Cardano's price
Experts foresee that the Cardano blockchain, with its escalating functionality, will evolve into a formidable competitor to Ethereum. Cardano's robust partnerships, such as those with the IT and consulting firm IBM and the state of Georgia, hint at growing interest in the platform. Furthermore, projects in Africa underscore its immense potential. As Cardano's functionality expands, small and medium-sized businesses are likely to show increased interest. Despite the ups and downs, the Cardano price chart has illustrated a substantial value increase since the launch of the ADA market. It's important to note, however, that past performance does not necessarily indicate future price trends for Cardano.
Cardano (ADA): Factors influencing the price
Various factors have shaped the history of Cardano's price, influencing the value of the cryptocurrency. With a solid market capitalisation currently around 17.5 billion US dollars, Cardano and its cryptocurrency ADA occupy a position within the top ten cryptocurrencies. The price trend of Cardano (ADA) can be influenced by numerous elements, including the political and economic climate, market hypes, inflation rates, governmental regulatory plans, and news of crashes and security breaches within the crypto sphere. The platform's ongoing development and increasing practicality also affect the price. Announcements by major companies of their intentions to invest in Cardano and use the platform themselves can stimulate interest and increase demand.