The agreement among most crypto enthusiasts is that Cardano (ADA) is a great project and that it has huge potential. However, the plain truth at the moment is that the platform doesn’t have a working product yet. It means that much of ADA’s value is a result of speculation rather than being driven by real-world use. To this end, Cardanostill has a lot to do to get to the level of some of the very top cryptocurrencies.
ADA/USD continues to decline and is currently trading in the range of between $0.15 and $0.18. The pair has declined over the last few days due to events surrounding the market. It has lost about 25% of its value in the week before. The result is huge selling pressure as its RSI drops near oversold levels. ADA may well drop to lows of $0.14 before the bulls resurface with a push towards recovery. Even then, the value of ADA is likely to rally in Q3 and in case you are wondering what’s going on with ADA, here’s why.
Shelley is ADA’s springboard
The one thing holding Cardano to a path towards global acceptance is its still in its bootstrap Byron stage and is not fully decentralized yet. As such, all users can do at the moment is to trade and transfer ADA. This isn’t all great for the coin when we consider possibilities surrounding regulators; suggestion being that it could find itself in danger of being classified as a security by the SEC. However, Shelley provides a path of sorts towards having a fully decentralized Cardano platform.
The IOHK team working on Shelley has one goal for the platform. Once this has been achieved, it will open up Cardano, potentially resulting in value increase for the ADA coin. According to Cardano.forum, Shelly is destined “to upgrade the network node protocol and to upgrade it in a decentralized fashion so that Cardano will no longer be dependent on IOHK and other Bootstrap stakeholders to maintain the network”
Shelley is on track to be implemented in Q3 2018. It’s safe to assume that the arrival of Shelley will coincide with an increase in ADA use and therefore demand. Staking and the accompanying rewards system is one of the most anticipated things on the platform.
IOHK Research and penetration
One of the areas Cardano is banking on is the solid foundation that the IOHK team is bu8ilding. The team, with a lot of input from Emurgo and Cardano Foundation, has made huge steps towards adoption and acceptance. One of the areas they have targeted is the use of their technology in Africa. Already the team, led by CEO Charles Hoskinson, has a MoU with the Ethiopian government and held talks with Rwanda. Others countries showing great interest are Tunisia and Kenya. It’s likely a matter of time before the platform attracts the rest of the third world countries.
There are also partnerships in place with other platforms, companies and research institutions; all geared towards ADA use. After Emurgo secured a deal with Metaps plus, IOHK partnered ZenCash to enhance security and anonymity in blockchain projects.
Then the team has also been working on KVEM and the IELE testnets. What all these projects and partnerships do is to position the platform for rapid growth and adoption.
ADA is also gaining a lot of penetration with listings on major platforms around the world. Accessibility and liquidity are key to growth and the coin is getting to that. At the moment, the token is tradable on about 30 different platforms. ADA/KRW is the top trading pair. However, we are likely to see more ADA/ fiat pairs come into play, increasing ease of access.
Cardano (ADA) is also among coins like Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH), that Centra adopted. It’s a move that could see the coin gain worldwide acceptability by nearly 36 million card users. Centra provides ADA with another channel towards visibility, thereby increasing chances of growth in the near future. Already trading volumes are improving, which is a good step for the coin.
Beginning Q3, ADA could see huge jumps in value due to increased usage. That is the situation that’s put the coin onto the path to reaching $1 in 2018 and then from there, anything is possible. The prediction includes ADA/USD hitting the value of $5 in 2019 and about $10 by 2022.
For investors who believe in the inherent value of the ADA platform, it should be known that the true potential of this coin won’t be realized in the short term.