- The Cardano network has planned several key integrations to enable its DeFi ecosystem growth.
- Charles Hoskinson has remained optimistic that ADA will outshine Ethereum in the long haul.
- Crypto analysts believe that the ADA/USD pair must consistently rally above 88 cents to invalidate midterm bearish sentiment.
Cardano (ADA), a highly decentralized layer one (L1) blockchain, has outshined Bitcoin (BTC) and Ethereum (ETH) in the past year. Crypto analyst Dan Gambardello has outlined an optimistic bullish thesis for ADA price fueled by the network’s upcoming major developments and external tailwinds including rising demand from institutional investors.
However, there are key issues facing the Cardano ecosystem, which must be addressed in the near term to facilitate its mainstream adoption, led by institutional investors. For instance, the Cardano network has less than $40 million in stablecoin market cap while its competitors, led by Solana (SOL) and Tron (TRX), have been facilitating billions of U.S. dollars in stablecoin minting.
Cardano Bullish Thesis Explained
What will draw institutional capital to ADA
The Cardano network has gradually attracted big money due to its relentless growth and development. However, institutional capital has not made its debut in the same manner as Bitcoin and Ethereum, especially through the ETF market.
According to speculative data from Polymarket, traders are betting an 85% chance that the U.S. SEC will approve a spot ADA ETF in 2025. Late August, Grayscale Investment filed an S-1 registration statement with the SEC for its proposed spot Cardano ETF.
Will Cardano Foundation’s Shortcomings Deter Big Money?
No. In a recent AMA session, Cardano founder Charles Hoskinson criticized the Cardano Foundation, a Swiss-based non-profit organization focused on enabling mainstream adoption of ADA, for failing to secure key ecosystem integration.
However, Hoskinson stated that the shortcomings at the Cardano Foundation will not deter the mainstream adoption of ADA. Moreover, Hoskinson announced that the IOG and the Midnight Foundation have been funding crucial expensive integrations including with LayerZero and Chainlink.
Why is Hoskinson Optimistic on Outpacing Ethereum?
The Cardano network has achieved incredible decentralization over the years to empower its community governance. Currently, the Cardano Improvement Proposal for Leios scaling protocol, which is meant to increase the network throughput between 30x to 65x, is open for the community’s review.
According to Hoskinson, the Leios scaling protocol will be implemented in the next 12 to 18 months.
Midterm Targets for ADA Price
According to crypto analyst Gambardello, ADA price is well-positioned to rally exponentially in the near future and possibly hit $15 during this bull market cycle. The crypto analyst opined that the ADA price has been following a similar fractal pattern to the 2021 bullish breakout.
The crypto analyst stated that it is very realistic for ADA to reach $15 in this cycle as it will only mean a market cap of about $547 billion. However, Gambardello has set a midterm target for ADA at $5.
Related: Bitcoin and Ethereum Are Pushing Higher, So Why Are Cardano Whales Selling 30M ADA?
In the midterm, the ADA/USD pair has been retesting a crucial support level around 83 cents.
Nonetheless, crypto analyst Ali Martinez recently noted that ADA price must consistently close above the notable supply level around 88 cents to confirm its macro bullish breakout towards $1.2.
Related: Cardano (ADA) Price Prediction and Analysis for September 3
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Source: https://coinedition.com/analyst-predicts-15-dollar-cardano-price-despite-major-flaws/