The crypto industry had a tough run last year. The vast majority of assets lost significant portions of their values, with general market losses amounting to around 64%. There were several factors that were driving the risk-off sentiment among investors. The implementation of higher interest rates by the Federal Reserve was one of them. Also, many crypto enthusiasts lost their trust in the entire industry because of the collapse of entire networks.
Despite the awful performance and general concerns about the crypto market last year, you still can find some distinct and reliable options to invest in. Some of them are especially relevant if you expect long-term returns. Cardano is one of them, although it lost more than 82% in value in 2022. Why is ADA a good investment in 2023?
Table of Contents
General information
Cardano has acquired a reputation as one of the potential Ethereum killers, as it operates on the same consensus mechanism. The proof-of-stake model enables holders to stake their coins in order to use them as a power for transaction validations on the blockchain. The reasons why Cardano was supposed to outperform Ethereum will be displayed in the following abstracts.
Currently, this blockchain utilizes a special layer-2 scaling solution called Hydra. This system is projected to execute 1 million transactions per second in the future, which will become a huge outbreak for the crypto industry.
Blockchain upgrades
The team behind Cardano is constantly working to implement new innovations and improve the performance and scalability of the network step by step. The Vasil hard fork is one such recent development, which was introduced in September 2022.
What’s more, at the beginning of February, the Cardano network launched its own stablecoins traded under the DJED ticker symbol. It’s a very important implementation in the world of decentralized finances. Now, Cardano users can not only invest in ADA crypto but also store their funds in a token with a stable value.
One more important thing to be mentioned here is that Cardano’s developments can be used beyond the world of decentralized finances and crypto technologies. We believe that this reach to other industries will keep evolving, meaning the Cardano value will increase alongside the demand for its technologies.
Low-price investments
One more thing that makes sense to buy ADA tokens in 2023, is that it offers a good entry price.
The history of this cryptocurrency dates back to 2017. Over this period, ADA has generated a 1,000% return, which is better than BTC and ETH over the same period. However, due to the fact that ADA lost a significant portion of its value in 2022, it’s now traded far lower than its all-time maximum. As for the date of writing, you can buy one ADA token for $0.4017. With a market cap reaching almost $14 billion, Cardano is the 7th-biggest cryptocurrency in the world.
The current low price and ambitious goals of the project mean that it’s the best time to make an investment. We believe that ADA will generate more value with the introduction of new developments and the improvement of the ecosystem for developers. That’s why it would be a silly decision to miss the opportunity to enter this competition at such a low point.
To be more specific, by 2025 ADA is expected to reach the minimum mark of $3.26, whilst in 2030 the coin is expected to be valued at around, which makes this cryptocurrency a great investment from the long-term perspective.
The bottom line
We believe that there is a point in investing in ADA in 2023. We’ve listed the reasons why this is so but you should consider that these are just developments we can see now. The Cardano blockchain hasn’t fulfilled all its ambitions yet. We are still anticipating the introduction of all features of blockchain’s smart contracts that will allow the launch of exchanges, marketplaces, and NFTs on this network. Knowing the thorough and well-thought-out approach of the team, we can expect that this will make Cardano one of the industry leaders.
