Cardano (ADA) price prediction 2018: is it too late to buy Cardano?
Cardano's ADA token is up almost 30% over the last couple of days, can this growth keep going?
Cardano is looking to steal Ripple's thunder, following it to be the second big coin to see a surge over 30% this week. At the time of writing, its price is currently sitting at US$0.73 as tit looks to break the $1 mark going into the new year.
Cardano's ADA token has only been around since October and already has a market cap of US$18.7 billion, making it the fifth most valuable cryptocurrency based on market value.
Why Cardano could keep growing
1. It's one of the most advanced cryptocurrencies
If you think of Bitcoin as a first generation crypto, Ethereum as a second generation, Cardano is pitched as the third generation cryptocurrency. It wants to solve the three biggest issues with current coins - sustainability, scalability and interoperability.
The biggest advantage of Cardano is that unlike Bitcoin, it's built with two layers. You have the first layer called the Cardano Settlement Layer which works as a more efficient bitcoin, handling the balance ledger and basic transaction side of things.
It has a second layer though, called the Cardano Computation Layer. This is where decentralised apps and smart contracts built on Cardano will be based and can operate separately to the CSL layer.
These multiple layers also mean that changes can be made to the platform without a fork.
Cardano itself was developed through peer reviewed academic research and is based on the Haskell programming language, which is viewed as extremely secure and uses mathematical proof of correctness to verify code.
2. It has a clear, transparent roadmap
The non-profit Cardano Foundation oversees the majority of community and product development for Cardano, and regularly updates the progress of its updates. In fact, next week they're due to give another major progress update to the platform.
On the Cardano roadmap website, you can see its next major update Shelley, and is due in Q2 2018. Shelley is designed to turn Cardano into a fully decentralised and autonomous system.
After Shelley, they will release the Goguen update which will introduce a virtual machine and universal language framework. This update will allow third parties to create tokens and more powerful decentralised apps on the platform.
3. Could it be the new Ethereum?
Cardano has the potential to be the new default for decentralised app development and smart contracts, thanks to its ability to scale and handle transactions in a faster way. The platform will also support smart contracts written in Ethereum's Solidity language too.
However, it still faces tough competition from Ethereum. Ethereum is both the more established technology, and better known, gaining more market share and awareness with every day. The team behind Ethereum is also looking at introducing the Plasma update next year which will add a second layer solution, allowing Ethereum to handle much larger data sets and help solve some scalibility issues. Ethereum's founder believes that this technology will eventually be able to handle the same number of transactions per second as Visa.
Cardano needs to establish itself and its final tech before Ethereum gets to this point.
4. ADA will be available on a network of ATMs in Japan next year
Japan is currently the second largest market in the world for cryptocurrencies after the USA, with both consumers and businesses showing interest in multiple platforms. The introduction of 25 ATMs will make it much easier for consumers in such a big market to become involved with ADA and bring it into the mainstream.
5. The continued crypto hype
The buzz around crypto currencies is expected to keep growing in 2018 as more use cases for blockchain based technology continue to pop up, as well as Bitcoin's continued dominance of headlines as it reaches new values. As a result, attention will be brought to other coins for buyers to invest in, particularly those ones that have a sharp rise in value like Cardano is having.
Could Cardano be the next Bitcoin?
After the past few days it's looking increasingly likely that Cardano could hit the US$1 mark for the first time in the next month. It's continued growth from there depends on whethere the development team can hit its targets from the roadmap, or even exceed them.
When Cardano's feature set expands towards the end of 2018 and it becomes a more powerful platform for smart contracts we could see another spike in price.
However, this all depends on Ethereum's growth too. If Ethereum can implement the likes of Plasma and scale faster before Cardano's platform is ready, it may be too late. It will be worth keeping track of the progress of both cryptos as they will directly influence the value of each other.
Cardano will likely never reach the same price for an individual ADA token as a single BTC due to the 26 billion ADA tokens currently in circulation compared to the 21 million for BTC. However, it's possible if the rate of growth continues for Cardano, its total market cap easily surpass that of Bitcoin within the next couple of years.