One thing every crypto investor dreads is a market crash. A market crash can destabilize any cryptocurrency, including big names like Bitcoin or less than decade-old crypto such as Cardano.
Recently, in January of 2022, every investor's nightmare became a reality as the crypto price plunged across the crypto market. It was so bad that crypto, such as Bitcoin price, dropped by thousands of dollars, as Cardano's price dropped to almost less than a dollar.
During this period, many investors panicked and sold their assets out of fear of not losing all their investments. Whereas, some investors who understood the market's volatility stood their ground and kept studying the market.
So, if you are investing in Cardano, this article is definitely for you as it explains why Cardano's price will rise again and to what extent. This Cardano price prediction should shed some light in a very-very dark tunnel for many investors.
Cardano price prediction
According to several financial experts, Cardano is one of the best investments to make with great potential. Their advice to investors is to buy Cardano as a long-term investment if they truly want to see any real profit.
Based on their predictions, Cardano's price would be worth twice as much as it does today a year later. And according to them, even those that maintain a bullish outlook of Cardano, its price will continue to rise throughout the coming decade.
According to their model, Cardano's price could rise from $1.14 to $2.14 within a year. And the prediction model of most of these financial experts shows ADA surpassing the $5 mark before the end of 2027.
As such, if you were to invest $1000 in Cardano today, it could yield about $2000 by 2023. And in five years from today, you can flip $1000 to about $5000 without lifting a finger.
Importantly, note that cryptocurrencies' price predictions are merely speculations. Nevertheless, making investment decisions based on it will give you an insight into what to expect from any cryptocurrency.
Why will Cardano's price rise again?
While many investors may see this Cardano price prediction as humongous or preposterous, they are not. This Cardano price prediction was made after carefully considering the factors that can influence its market value. Below are three reasons why Cardano price will rise again:
Cardano blockchain aims to adopt mainstream dApps and DeFi products
One particular new update on Cardano will help increase its market value to incentivize dApps and DeFi products. Bringing dApps, and DeFi functionality to Cardano will increase the application of Cardano.
Although Ethereum is known as one of the major cryptocurrencies that takes advantage of this, bringing this innovation to Cardano will create serious competition for Ethereum.
The more people are buying a cryptocurrency, the higher its demand. If the demand eventually surpasses its supply, it will cause its price to increase. And with Cardano being more affordable than Ethereum, most people will rather buy Cardano than Ethereum.
Cardano’s developers' introduction of smart contract functionality
Again, the developers of Cardano are looking to bring some major competition against the Ethereum network by introducing smart contract functionality to Cardano.
Smart contracts are a key element of the Ethereum network. However, this functionality has been deployed on the Cardano network since September 2021 and has seen significant growth since then.
Although Cardano smart contract is still at its infant stage, standing at an estimated value of $25 million in locked assets. Nevertheless, due to the longevity of Cardano and its wide utility, especially with DeFi support, the value of the Cardano smart contract will surely increase.
And if you know anything about smart contracts, you will know that they will allow users to make interest on deposits and loans. Investing and trading are not left out of the picture, and automated mortgages, legal contracts, amongst other uses.
Ouroboros Hydra solution
After about five years of development, Cardano will launch the Ouroboros Hydra solution. The Ouroboros Hydra solution is an off-chain scalability solution that will help to boost processing time and scalability. And the best part about the Ouroboros Hydra solution is that it will use less storage space on the network's node.
When there is a new development on any cryptocurrency, its functionality will increase. This functionality includes micropayments, insurance contract support, and voting systems, amongst others. The increase in the use of Cardano will mean an increase in demand, which will eventually influence its market value.