ADA up 557%, is that possible?
In the past few months, a number of ecosystem-oriented developments have put ADA in the top 5 of CoinMarketCap’s rankings. With ADA’s price currently nearly 38% lower than ATH’s at the time of writing, some optimists have stated that its price could hit $ 10 by the end of 2021.
The first Cardano Smart Contract written in Plutus was recently published in the Alonzo Testnet. While Cardano’s updates are well received by the community, the ADA price is struggling due to frequent market corrections. During this period of low volatility, the trader is capo given some huge year-end price predictions for ADA, Bitcoin and ETH:
“BTC> $ 100,000, ETH> $ 10,000 and ADA> $ 10 this year still very likely.”
Based on the ongoing bear market trend, Capo’s predictions imply a 156% increase for Bitcoin, a 302% increase for ETH, and a massive 557% increase for ADA. ADA hit an all-time high of $ 2.40 in May 2021, despite starting an upward trend earlier in the year, with the price subsequently falling significantly as the market collapsed.
ADA is trading at $ 1.39 at press time, hovering between the $ 1.35 support and the $ 1.81 resistance. In light of environmental concerns, Cardano has now grown in importance thanks in part to its efficient proof of stake process.
Additionally, ADA’s ROI was 1,716.11 percent at the time of writing. With that number, the analyst’s forecast of a huge increase in 2022 is correct. However, its 30-day ROI is -24.32% and its break-even multiple is 1.62, suggesting that a massive spike as suggested by Capo might be a little too optimistic right now.
The Shelley Hard Fork is a potential catalyst for the Bull Run of the ADA 2020. Therefore, it is quite possible that another rally will take place after the Goguen phase is over. However, considering the bear market trend and the falling BTC price, the possibility of a 10x increase in ADA for ADA would be a surprise. In retrospect, the news that Cardano outperformed Coinbase and Roblox in terms of market capitalization while also outperforming Vodafone by $ 0.9 billion could also raise the price.
There are currently several schools of thought when it comes to the price of ADA. For example after a Website Trading, the price of ADA will be between $ 1,265 and $ 1.86 while another site speak that its price will be between $ 2,271 and $ 2,484 by January 2022.
Capo also predicts that Bitcoin’s dominance could decline further through October, a downtrend that could push Altcoins to big strides in the coming months.
Source: Capo / Twitter
With most of the altcoins correcting themselves sharply against Bitcoin in the past few weeks, Capo claims the decline offers a buying opportunity for a dip. He concluded:
“The ALTS / BTC chart looks like shit right now. But instead of complaining, look for opportunities. Times like these offer the best opportunities. “
This is the way ADA could go wrong
While development is at a rapid pace and the price of ADA is being optimistically predicted by the popular dealer, we should also examine what is likely to fail in the case of the project.
This is one of the questions that Cardano creator Charles Hoskinson poses in the latest installment of Podcasts by Lex Fridmann.
The likelihood of Cardano failure depends on whether it is actually successful and achieving the project goals. For example, self-development is one of the goals of the project, and if it doesn’t succeed, the product won’t achieve what it wants. He added:
“If it still takes an administrator to be successful, the system will not work.”
As mentioned in a previous post, Cardano is now developing Alonzo, with a number of test phases being carried out by various stakeholders, including pioneers running the Alonzo project. It is worth noting, however, that the CEO of IOHK remains cautious with the hope of 100% success.
“There is no guarantee that this will be sustainable. There is no guarantee that the next step of the smart contract will achieve what we want. There is no guarantee that the governance move will achieve what we hope it will. “
In addition, Hoskinson also stressed his caution about the possibility of Cardano moving in the wrong direction and showing signs of “counter-centralization” like the Chinese social credit system. Accordingly, “a small group has control over who is using the system and how they are using it”.
Finally he answered the question about network effects. According to Hoskinson, Cardano is “incredibly viral” with a loyal community that believes in a valuable mission. However, such a community runs the risk of becoming a sect or religion, and he concludes his point by stating:
“I hope you don’t make the same mistake as Bitcoin. I hope the community will be open-minded, Socratic and ready to embrace new ideas without applying them and rejecting ideas that have been proven wrong. “
Now it would be fair to argue that Hoskinson sees the Bitcoin community as “toxic and maximal” given his perspective as an altcoiner.
“Four names are responsible for all of the ‘bullying’ you see in the Bitcoin community: Mike Hearn, Gavin Andresen, Roger Ver, and Jihan Wu. The toxicity increases with the prolonged fighting. Bitcoiner has become increasingly paranoid, suspicious and aggressive after devastating attacks. “
Hoskinson’s assessment of the causes of errors is interesting, especially since he doesn’t cover things like ADA pricing or error disclosures. Although he has stated that he doesn’t care about the price of ADA, Hoskinson also claims:
“Errors in work are possible, but the probability is lower with us than with other systems because we use formal methods and we use peer review in protocol design.”
According to AZCoin News