At the start of the year, Cardano’s market capitalization was $ 5.6 billion. In five weeks, however, a flurry of bullish sentiment raised that number to $ 28.4 billion. That was enough to overtake XRP and Polkadot and take fourth place on CoinMarketCap.
During this period, the price for ADA has also increased by + 420%. A $ 1 rejection this morning was something to be expected. This historical level of resistance has persisted since January 2018. However, given the convergence of bullish fundamentals, analysts remain bullish through 2021.
Source: ADAUSD on TradingView.com
Basic reasons to be bullish on Cardano
Cardano’s era of smart contracts is well on its way. Developers IOHK launched the Mary Goguen test network last week.
Currently, custom tokens are being tested and monitored prior to the mainnet rollout. Assuming everything goes according to plan, the developers will be available on the mainnet by the end of this month.
“The use of Goguen ‘Mary’ marks a significant stage on Cardano’s journey. When Mary turns her crypto key within the network, we will unlock the mechanism for users to create their own tokens for a variety of uses: Decentralized Finance (DeFi) and countless other business use cases. “
On March 26, 2021, the D parameter will reach zero. In this case, the Cardano network will be 100% decentralized, which means that IOHK has given up all control of the block production. From then on, independent stake pool operators are fully responsible for the task.
Cryptocurrency is often criticized for its lack of real world application, especially when viewed through a first-world lens where trading or speculation make up the bulk of its use.
However, John O’Connor, Director of African Operations at IOHK, announced that the company is about to sign a contract with an African government. There are no further details on who or how. But millions of users are being tied into the Cardano ecosystem for real-world use.
ETH-ADA showdown shortly before heating up
Despite Cardano’s impressive market cap gains recently, Ethereum still tops the competition with its $ 200 billion market cap, making it the smart contract platform to beat.
However, the analysis of the situation brings Cardano to the fore. In the meantime, Ethereum, more precisely ETH 2.0, is still years away from its completion. This gives competing chains time to distinguish themselves.
Charles Hoskinson, CEO of IOHK, commented on the ecosystem’s recent growth and said we deserved it. He talked passionately about doing things the hard way and not being shy about the challenges.
“There’s an inevitability behind Cardano. Not only are we here to stay, we’re going to have a huge impact and give the universe a big dent because we deserve it.”
With so much happening in the Cardano ecosystem right now, many believe that bigger things are coming in 2021.
