Is Cardano Undervalued? What is the Real Potential of the Crypto?

Cryptocurrency investments are well known for their dramatic fluctuations. One day, it is at the top and the other day, it reaches rock bottom. To be precise, crypto investors are used to this volatility and are more willing to try their hands on digital tokens. At a time when bitcoin and ethereum are at the center of crypto investor’s top choice, Cardano is gradually moving forward in a better way. Therefore, now is the right time to acknowledge Cardano’s value and take it as a serious investment.

Although there is no central or government authority to moderate the price fluctuations, digital tokens have established themselves as the financial trend of the 21st century. Futuristic and feature-added cryptocurrencies like Cardano are making the initiative even more smooth and worthy. But why is Cardano undervalued despite its market stance and growing price? A major reason behind this is the dominance of bitcoin and ethereum. Being the third-largest cryptocurrency in circulation, ADA coin still has a long way to go before it overtakes the famous duo in the digital currency market. Currently, Cardano is traded for around US$2, but experts predict an upcoming price haul that could potentially drive up the price to a higher level. However, ADA coin needs something like what dogecoin has got. The spirit and the followers make it one of the best investments. When people realize the true potential of Cardano, it won’t be undervalued anymore.

Recently, at the beginning of September, the ADA coin broke through US$3 for the first time and made history. It was solely triggered by the company’s announcement of the network’s testnet that supports smart contracts. Cardano rose to over US$3.10 before hitting back the usual US$2 value.

The Basics of Cardano

Launched in 2017, Cardano is a two-layered structure with Cardano Settlement Layer (CCSL) and Cardano Computation Layer (CCL), which are responsible for running applications. It is the third-largest cryptocurrency in the decentralized sphere. ADA coin is backed by a proof of stake blockchain platform that has many similar functionalities to ethereum.

Cardano stands out from the crowd for its unique peer-reviewed methodology that developers use to build blocks in the ADA coin is the digital token traded by the platform as the form of payment. Besides serving cryptocurrency tradings, Cardano platform also provides smart contracts and other blockchain-related services. Its smart contracts are well known for their full enterprise-level decentralized apps (DApps) feature.

Grayscale Report Suggests that Cardano is Undervalued

According to a recent research report by Grayscale, Cardano, the third most adopted digital currency in the world might actually be undervalued for its performance and growth based on the last 12-month average. Compared to ethereum that has a relatively similar pattern of working, Cardano deserves more recognition.

The report unravels the fact with global numbers based on how Cardano has improved over the past year. One of the major reasons for its growth is the unraveling of smart contracts. Cardano’s smart contract got an Alonzo upgrade, providing more opportunities for decentralized applications. This update gave a competitive edge to Cardano with its market rivals including ethereum, Solana, avalanche, and Polkadot. The report further insists that ADA coin settles more payment value per unit than its direct competitors. According to the numbers, Cardano is also undervalued on value pegged to active monthly users. Cardano currently has 2.8 million active monthly users, while ethereum has close to 7 million.

What is the Real Potential of Cardano?

Unlike many other cryptocurrencies, Cardano doesn’t rely on the whitepaper to follow the same pattern of functioning. Rather ADA coins and the platform change their features based on scientific reviews. Their constant updates make it the best digital token that suits the optimal crypto ecosystem.

Besides, ADA coin transactions are fast and take minimum time. The platform can take up to 250+ transactions per second compared to ethereum’s 15. Other than gaining active income, Cardano investors can also get their hands on passive income through staking their ADA coins. Everyone can become a node validator on Cardano, making the network even more decentralized and independent. Cardano is also eco-friendly as it doesn’t rely on mining and refrains from consuming extreme electricity.

Cardano is currently worth US$2.21 per coin. Even though the value is very less compared to its competitors such as bitcoin and ethereum, the digital token recorded a growth of over 4,000% in the last year. ADA coin has positioned itself as the third-largest cryptocurrency with a market capitalization of US$40 million. Its availability in all famous crypto exchanges makes it easy to use for crypto investors.

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