What is Cardano (ADA)?
Cardano (ADA) is a blockchain protocol that uses the modern proof-of-stake consensus mechanism and wants to be extremely fast and efficient in the future. Cardano wants to solve the blockchain trilemma, the combination of scalability, decentralization and security .
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Cardano's network token is called ADA . It is used for charges and for communication in the network. The Cardano blockchain is regularly further developed in major development phases. Cardano wants to become the most efficient and scalable blockchain in the future.
In the past, Cardano was repeatedly referred to as the "Ethereum killer". The blockchain uses scientific methods to regularly develop the blockchain in all important areas. This is an important reason why Cardano has such a large following.
How will the Cardano (ADA) price perform in 2022?
Over the past few months, Cardano (ADA) price has seen a sharp drop due to the onset of the bear market. In September 2021, the Cardano price reached over $3. This value was reached after the final introduction of smart contracts. In the fourth quarter of 2021, however, we saw a drop again.
At the turn of the year 2021 / 2022, the price of Cardano was only $1.37. After further heavy losses, the price fell below a value of 0.42 dollars. After that, the Cardano course was able to stabilize at a value of around $0.45.
For the past few weeks, the entire crypto market has been moving sideways. But Cardano (ADA) was a small exception. Although the price didn't see a major drop, the price has been falling steadily for the past 2 weeks and is now in the $0.35 range in mid-October. This means that the Cardano price is currently lower than it has been since the last bear market.
Why did the Cardano price drop in the last few weeks?
In the last few weeks, the Cardano price fell to a low in 2022. With that, the ADA token lost more than many other cryptocurrencies in the last few weeks. Cardano (ADA) also fell in the ranking of cryptocurrencies by market capitalization.
Cardano's losses cannot be explained by bad news surrounding the network. Because in the last few weeks we have seen progress in development. The Vasil update was finalized in September, ushering in the basho development phase. With Vasil, Cardano can run its smart contracts faster and more efficiently.
Despite positive development, Cardano sees losses. But this is not unusual for the cryptocurrency. In past bear markets, the Cardano price also fell sharply, which was not always related to the level of development. Furthermore, price increases at Cardano are mostly based on the potential that investors give the network. Before a major technical breakthrough in the blockchain, the ADA price usually explodes.
Where does Cardano stand in terms of development?
In the last few weeks, the first progress has been made in increasing the scalability of the Cardano blockchain. With the Vasil update, the first big step in the basho development phase was made. At Basho, the goal of the developers is to make the Cardano blockchain extremely scalable and the fastest blockchain on the market. It is said that 100,000 transactions per second are possible.
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But the development at Cardano does not always proceed linearly and smoothly. This is due to the development approach at Cardano. Instead of speed in development, the Cardano Foundation relies on careful work in further development and excessive testing.
This qualitative but slow further development repeatedly causes criticism of Cardano. In the current crypto market, rapid developments are necessary in order not to fall behind the technical standards of other projects.
Is Cardano a working and growing smart contract platform?
The criticism of Cardano's slowness could be reflected in the bear market on the price of the ADA token. The numbers of the Cardano network are excellent at the moment. According to ADA Whale, a total of 97,959 transactions are currently being processed on the Cardano network on October 19th. This means that the volume has increased by 75% compared to the previous month.
Furthermore, the volume has also increased significantly in the area of NFTs . Cardano is currently the number 3 blockchain in this area behind Ethereum and Solana. With the Vasil update, more and more developers should be interested in building their applications on the Cardano blockchain in the near future.
So Cardano works excellently with its smart contracts at the moment and the ecosystem is growing strongly with the transaction volume. But why is the Cardano price not increasing?
Why is the Cardano price so low?
At the moment, we can once again clearly see an interesting phenomenon in the crypto market with Cardano (ADA). We often see rising prices in a bullish market phase and when there are positive rumors about new updates and improvements on a network. Many investors buy for potential. However, when there is concrete progress, many investors sell, causing the price to fall. "Buy the rumor, sell the news!" This is called.
At the moment we are very likely to see such a development. In addition, a sharp drop in Cardano in the bear market is not a new event. We also saw this in the last bear market. In general, the ADA token is known for very high price differences between bull and bear markets, higher than Bitcoin, for example. However, Cardano must continue to deliver in the future in order not to fall behind in the market.
Is an investment in the ADA token worthwhile?
You should still consider an investment in the ADA if you are convinced of the concept and the development of the project. Price drops like in the last 2 weeks are often a cause for concern, but can also be seen as an opportunity to buy the ADA token cheaply.
Cardano is one of the most exciting projects on the crypto market and has ultimately always delivered the promised further development. The growth of the network is promising. Cardano could rise sharply in price in the next bull market. There is always a risk, but the bear market is a good place to buy cheap tokens.
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