During the bull run of 2021, it felt like the good times would never end. Specific cryptocurrency projects increased by 100x over a few weeks, and American retail traders were pumping their stimulus checks into the digital asset market. Elon Musk led the orchestra before the whole market sleepwalked off a cliff and lost over a trillion dollars in a week, fun times.
While projects with no utility or recognizable benefit struggle to navigate the bear market, Cardano finds itself in a precarious position. Bitcoin is the biggest name in the cryptocurrency world. It has the largest market cap, is the oldest digital currency, and has the most practical use cases; it can be used online for transactions in particular retailers, as currency in countries like El Salvador, and you can even use it to gamble.
Bitcoin casinos are a brand new gaming area, but it is one niche sector quickly gaining momentum in the online gambling world. The benefits of using cryptocurrency to gamble vary from instant deposits, enhanced security, and not having to hand over as much personally identifiable or financial information before you bet, which is the true foundation of crypto. This has led to the subsequent rise of specific crypto games, such as Bitcoin pokies and a wide range of other games where you can use your digital assets to gamble.
Understanding that Bitcoin and blockchain technology are designed to make payments like casino deposits more efficient and secure is a cornerstone of digesting the benefits of the technology, but this is the tip of the iceberg. Blockchain technology also negates the need for legacy, traditional, and somewhat antiquated financial systems, which are vital things to take on board before you trade crypto or use Bitcoin to place a bet.
What Is Cardano? (ADA)
Cardano was also one of the big names that featured heavily in the bull run a couple of years ago and traveled from around $0.03 to an all-time high price of $3.10. Quite the ride, and considering the designer of Cardano, Charles Hoskinson, is clocking up nearly as many air miles as Mr. Worldwide, it seems like he has benefitted heavily from this exponential price action.
While the use cases of Bitcoin and Ethereum are clear to see for most people who trade digital assets, the initial benefits and unique selling points of Cardano were more specific to those who understand the finer detail of cryptocurrency.
Hoskinson was one of the first developers who worked on the groundbreaking Ethereum blockchain in 2015. The designers of Ethereum have since split into different projects, and Hoskinson’s project was Cardano. The critical element is that Cardano uses Proof Of Stake (POS) instead of Proof Of Work (POW) to create a more energy-efficient decentralized application that doesn’t rely on extensive computer processing like POW does, and ADA is the native token.
The Cardano team had big plans, and the ultimate aim was to provide a way for people who could not use a bank account to send and receive assets using the Cardano platform effectively.
The Peak Of Cardano
Back in the bull run of 2021, Cardano managed to climb to the 4th biggest cryptocurrency by market cap. The price to perform 100x in just under a year was mindblowing, making early investors unbelievably wealthy. Many analysts in the space were even comparing it with the chief of the altcoins – Ethereum, and it looked like the future was bright for ADA.
Following the market capitulation throughout 2022, there wasn’t one cryptocurrency that escaped lightly, with all the top 50 coins dropping by at least 50%. However, the concern for Cardano is that it hasn’t experienced anywhere near the same level of bounceback as some other cryptocurrencies in 2023, and Cardano’s smart contract launch has not facilitated the sort of price action that Hoskinson would have been anticipating.
In addition, Ethereum has solidified its position as the number one platform for NFTs and thousands of other projects; irrespective of their gas fees, it is widely considered the top blockchain. Several vital innovations by Ethereum have solidified its position as the top altcoin, with many believing it will one day flip Bitcoin due to the number of practical use cases and the fact they haven’t (yet) been targetted by the SEC in America.
Conclusion
With the recent wave of regulatory action in America, and with many analysts predicting it could lead to Cardano being delisted from large exchanges as it is now considered a security by the SEC, the future is looking quite frosty at the minute for Hoskinson’s project.
As so many other projects are rising to prominence, providing more practical use cases, and continuing to innovate, it does feel as though Cardano has peaked. The next bull run will be the best indicator of whether ADA has had its day in the sun or has another rally left, leading to it surpassing its all-time high. If we were to make a prediction, though, we’d say this is unlikely.
