header banner
Default

Five things that might cause Cardano to reach $5


Although the majority of assets on the cryptocurrency market have consolidated their gains from the July rally, including Cardano (ADA), many are wondering if the eighth-largest cryptocurrency by market capitalization would ever get close or even overtake its all-time high (ATH) from 2021 and hit $5.

As it happens, Cardano reached its ATH of $2.97 on September 4, 2021, when the strong positive sentiment in the crypto sector sparked a rally that has seen many digital assets breaking their price records and ADA growing 116.84% in a single month (from $1.3697 on July 4).

In this context, Finbold has analyzed the main factors that could (but not necessarily have to) lead Cardano to retake its ATH and continue to advance towards the $5 price level – either acting alone or in concert with other influences.

Ecosystem growth

The more Cardano progresses in terms of its technology, network upgrades, and development milestones, the better its odds of having those advances impact the price movements of ADA, as successful implementation of more key features could attract more users and investors.

An example is the recent launch of Mithril, a stake-based signature protocol with the goal of improving the efficiency of the node sync, increasing decentralization through blockchain snapshot validation by multiple pools, and introducing an aggregator to create the certificate chains and deliver snapshots.

Mass adoption

Increased adoption of Cardano for real-world use cases, including decentralized applications (dApps), decentralized finance (DeFi) projects, and non-fungible tokens (NFTs), could drive demand for its cryptocurrency and potentially contribute to its price appreciation.

As Finbold recently reported, the holdings of Cardano ‘whales’ and ‘sharks’ -big market players that have the largest impact on price movements – have been continuously rising, holding the highest amount of ADA since September 2022, signaling the possibility of a price breakout.

Major partnerships

Another factor that could help Cardano’s case is partnerships with major companies in various fields, such as the recent collaboration with the Africa Blockchain Center that will help developers in Kenya gain access to its Mithril protocol, as well as skills in other areas through a two-month training program.

Furthermore, Cardano also teamed up with telecommunications giant Vodafone for the launch of an NFT collection by its German branch, Vodafone Deutschland, later this year, with the help of the NFT infrastructure provider NMKR, showing a significant step toward mass adoption.

Regulatory environment

Amid growing regulatory hardships that the crypto industry is suffering around the globe, especially in the United States, where the pressure has culminated in multiple legal cases against the market’s largest participants, any positive developments in terms of regulations can help move the needle in crypto’s favor.

One example of these events is the British finance ministry’s rejection of the recommendation by the United Kingdom Parliament’s Treasury Committee to regulate retail trading and investing in unbacked crypto assets as gambling, as Finbold reported on July 20.

Market sentiment

Lastly, the atmosphere in the wider crypto and macro landscape can play a major role in the price movements of specific assets, including cryptos such as Cardano, with positive developments on a larger scale and news coverage on the industry as a whole.

For instance, positive news about the crypto sector, in general, can assist in the overall bullish sentiment in the market, and when people are feeling particularly bullish about digital assets, more likely they are to invest in them, and this can be the case for ADA as well.

Cardano price analysis

As things stand, Cardano is currently changing hands at the price of $0.299, which suggests an increase of 2.8% in the last 24 hours, a decline of 2.22% across the previous seven days, and a 5.73% gain on its monthly chart, according to the recent information on August 9.

Cardano 30-day price chart. Source: Finbold

All things considered, time will tell how much of an influence the above factors will have on the future price of Cardano. That said, they certainly do have the strength to assist in its strengthening and eventually hitting the above price level of $5.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Sources


Article information

Author: Stephanie Livingston

Last Updated: 1704584642

Views: 1423

Rating: 3.7 / 5 (116 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Stephanie Livingston

Birthday: 1926-10-11

Address: 307 Sarah Extensions Suite 499, Charleschester, SC 50036

Phone: +4709643789662072

Job: Pilot

Hobby: Poker, Photography, Skiing, Fencing, Calligraphy, Chess, Animation

Introduction: My name is Stephanie Livingston, I am a treasured, apt, unyielding, bold, intrepid, important, skilled person who loves writing and wants to share my knowledge and understanding with you.