Why Cardano Could Be the Next Big Crypto Winner

TLDR

• Cardano (ADA) has seen significant developments, including full decentralization and improved scalability
• Analyst Dan Gambardello claims Cardano is now 10x stronger than in previous market cycles
• ADA’s market cap has grown from $2.997 billion in 2020 to $12.64 billion currently
• Large transactions spiked in late September but have since declined, indicating potential market consolidation
• ADA price is hovering around $0.34, with technical indicators suggesting a cautious outlook

Cardano (ADA), a prominent player in the cryptocurrency world, has recently undergone significant changes and attracted attention from investors and analysts alike.

This article examines the latest developments in the Cardano ecosystem and its current market position.

Cardano has made substantial progress in its journey towards full decentralization. On September 1, the Chang Upgrade went live, marking a crucial step in transferring control of the blockchain to the community.

Input Output Global (IOG) terminated its genesis keys, further enhancing the network’s security and decentralization.

These moves have strengthened Cardano’s foundation, making it a more robust and independent network.

Analyst Dan Gambardello has expressed a bullish outlook on Cardano, claiming it is now ten times stronger than in previous market cycles.

Cardano: 10x Stronger Than Last Cycle At This Moment.

🌐 Owned By Community
❌ IOG Burned Keys
⚡ Hydra Scaling
📈 Higher Market Cap Position
🤝 Massive Partnerships
🛡️ Unmatched L1 Security
💰 DeFi Ecosystem
🐻 Survived The Bear As Top 10

— Dan Gambardello (@cryptorecruitr) October 6, 2024

He cites several factors contributing to this assessment, including community ownership, improved scalability through the Hydra layer-2 solution, and a higher market cap position.

Cardano’s market capitalization has seen significant growth over the past few years. In 2020, ADA ranked 12th in the crypto market with a market cap of $2.997 billion. As of the latest data, Cardano’s market cap stands at $12.64 billion, representing a substantial increase.

Despite recent underperformance, Cardano has maintained its position in the top 10 cryptocurrencies for an extended period, demonstrating resilience during the market downturn of 2022 and 2023.

The Hydra scaling solution aims to enhance Cardano’s transaction throughput while maintaining high levels of security and decentralization.

This development could provide Cardano with a competitive edge in its pursuit of dominance among top blockchain networks.

Recent data shows interesting trends in Cardano’s on-chain activity. On September 26, ADA witnessed a significant spike in large transactions (those exceeding $100,000 in value), reaching a monthly high of 5,070.

This surge coincided with a positive price movement, pushing ADA’s price above $0.40. However, the number of large transactions has since declined, dropping to 2,300 on October 6 before slightly recovering to 3,000 by October 7.

The decrease in high-value on-chain activity could indicate a cooling-off period, suggesting that market participants are waiting for new developments or clearer signals before making significant moves.

This period of lower transaction volume might mean that ADA is in a holding pattern.

Whale activity has also shown interesting patterns. Between September 6 and September 22, the number of addresses holding between 10 million and 100 million ADA dropped from 405 to 388.

However, since then, the number of addresses holding between 1 million and 100 million ADA has remained relatively stable. Currently, 2,443 addresses hold between 1 million and 10 million ADA, while 391 addresses hold between 10 million and 100 million ADA.

As of the latest data, ADA’s price is hovering around $0.34. Technical indicators suggest a cautious outlook for investors, with the cryptocurrency currently in bearish territory.

The Fear & Greed Index stands at 49, indicating neutral market sentiment. ADA’s price volatility has been at 5.70% with 60% positivity, showing 18 out of 30 days in the green over the past month.

CoinCodex predicts that by November 7, 2024, the price of Cardano could climb by 16.86% to reach $0.412024. However, given the current market conditions and technical indicators, many analysts advise caution when considering investments in Cardano at this time.