Cardano price “realistic” at 1.80 – 2 USD by the end of 2022?

Cardano has become one of the frontrunners in the crypto market. Cardano is currently the second largest smart contract platform and is now in 8th place in terms of market value.

Recently, the Cardano team has not always managed to reach the goals of the roadmap. Planned releases were not made on time, the market was irreconcilable, and criticism of the skill of the team behind the network remains fierce in the crypto community.

To better understand what’s happening in this ecosystem, BeInCrypto spoke with the Cardano Foundation’s global content ambassador, Marcos Vinicius, at Bitconf 2022.

The roadmap of the Cardano network has five distinct phases, but what about the five promised phases?

Marcos Vinicius: “The five phases of Cardano are Byron, Shelley, Goguen, Basho and Voltaire. Each phase deals with a separate topic. The Byron phase was completed in July 2020. Since then, work has been done in parallel on the other four phases.

We work in rounds and with many interactions. This philosophy is mainly pursued in the development of software. This approach justifies the project taking a while. Several interactions are required until all functions run smoothly. “

An example of this is SundaeSwap …

“Despite the difficult start on January 20, the SundaeSwap protocol is already working very well today. The team acknowledged that the demand for scalability of the application was very high and changed the protocol accordingly.

SundaeSwap’s difficulties in January were resolved in February with network and protocol changes. Then, in March, MiniSwap, another Cardano decentralized exchange (DEX), was released. The ecosystem is constantly growing because scalability needs to be adjusted over and over again. This phase is the basho phase. “

Cardano SundaeSwap – An image from BeInCrypto.com

Will the Cardano Award hit $ 3 by the end of 2022?

At the beginning of 2021, the Cardano price experienced a growth of 600%. However, Marcos Vinicius does not assume that the Cardano exchange rate will show rapid growth again by the end of 2022 and will break the $ 3 mark.

I think it can be difficult because of the market situation. Bitcoin is at the $ 30,000 level. This effectively sweeps the entire altcoin market with it. “

“But in 2021, for example, there were many influencers, including one of the biggest in the crypto world on YouTube, who estimated the ADA price at $ 4- $ 5. We know that only the Cardano areas DEX, marketplaces and non-fungible tokens (NFTs) are tangible so far, but there are other areas of Cardano, such as lending, algorithmic stablecoins, synthetics and derivatives, so I think a reasonable Cardano price compared to $ 3.10 – which was an expectation in September 2021 – in the range of about $ 2 could lie.

Remember that this is not an investment recommendation. But basically, I think an ADA rate between $ 1.80 and $ 2 is realistic considering what has already been released and what is yet to come. However, it is a price where I see at least more chances for an interesting upward trend given the ongoing development. The price action is very interesting for those who want to diversify into risky assets. “

Could the Cardano price rise to a new record high?

Marcos Vinicius: “For the Cardano price to enter the $ 2 range, Bitcoin must reach a level between $ 50,000 and $ 60,000 again. At today’s range, I think a Cardano price between $ 1 and $ 1.20 is a reasonable estimate. Right now, The ADA rate is between $ 0.40 and $ 0.50. “

Cardano is the second largest smart contract platform, what is behind this success?

Marcos Vinicius: “What has been a major driver of growth has been the introduction of NFTs. At Cardano, an NFT is not a smart contract, but a native token. In this respect, the NFTs are very similar to algorithms. Cardano has nor a ledger that records the ADA, the fungible tokens, and the NFTs.The protocol interprets and recognizes these tokens and provides the same security for all.

ADA and other fungible tokens have the same status in the Cardanao registry, which was launched on March 1, 2021. Right from the start, there were many NFT collections. People bought the NFTs, split them across multiple wallets to use the potential profits to buy more NFTs. “

“It was basically this adoption of Cardano NFTs and the expectation people had about the smart contracts that led to an increase in portfolio activity.”

Cardano: An image from BeInCrypto.com

Let’s talk about scalability

Today, Cardano performs 250 transactions per second. The idea is to increase this number to one million transactions per second. Is it really possible?

Marcos Vinicius: “This is an interesting question, because at Cardano, the accounting does not take place through the account system, but through the UTXO system, which is like bearer money. Each transaction can represent 10 or 20 other transactions, as there are 20 inputs and 20 outputs. We call this point input / output. In this way, 290 transactions can be performed per second. ”

“By 2022, Cardano has already implemented several block extensions to accelerate the network. Including an extension designed to meet the demand created by SundaeSwap.”

“Along with these improvements is the scalability of Hydra, a Layer 2 protocol. It’s a smart contract. When you go to a coffee shop, for example, you open Hydra and your own smart contract runs on it. The smart contract does automatically a copy of the transactions, which we call homo morphicus.

The estimate of reaching one million transactions per second is quite optimistic. No protocol, not even in the traditional market, with a centralized server, can handle one million transactions per second. However, I think Cardano’s scalability will increase significantly in the medium term. This is likely to be shortly before the June 30 branch. “

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