As technological innovation continues to surge in the digital age, cryptocurrency has become one of the most impactful new developments. Cardano is an emerging cryptocurrency taking over the crypto market – and with recent reports of increased development activity, everyone is asking if the price of its underlying token, ADA, can follow? Let’s take a closer look at the exciting developments occurring with Cardano and explore what this could mean for the future of the cryptocurrency.
1. ADA Hype Unlocks From Recent Development Push
Recent development concerning the digital currency, ADA, has been nothing short of revolutionary. After a series of technical updates and changes to the underlying blockchain protocol, ADA has exploded in popularity – sending its value, and its use-cases to new heights.
To understand where the hype for ADA is coming from, consider some of the features now accessible to users of the currency:
- Cross-chain Transfer: Different blockchains can now interact and communicate, allowing users to bridge assets between different projects.
- Data Availability: Data can now be transferred and verified quickly and securely, opening up possibilities for new types of smart contracts, apps, and implementations.
- High Throughput: Transactions on the ADA blockchain are only limited by the speed of the network, meaning that transactions are almost instant.
All this makes ADA one of the most powerful and versatile cryptocurrencies out there, and given its low transaction fees and simple setup process, its future potential is something to behold.
2. Cardano Catching Up To Rivals?
Cardano is quickly outperforming its peers, making it a very attractive rising star within the crypto industry. Its special features make it a top contender for being the go-to blockchain algorithm of the future. Here is what makes it stand out from the crowd:
- Scalability: Cardano can process a much higher volume of transactions compared to the likes of Bitcoin and Ethereum.
- Proof of Stake Protocol: Cardano doesn’t require large amounts of energy to run its consensus algorithm like Bitcoin does.
- Built on Haskell: Haskell is a programming language that promotes data security, safety, and reliability. This is why Cardano is considered to be a very safe network.
Overall, Cardano is a great investment opportunity as its value will continue to rise as its users grow and new features are developed. Its advanced features make it a great choice for those looking for a blockchain algorithm that can efficiently move value across the globe. Despite all of its positive features, it is important to keep in mind that Cardano’s use-cases are still being tested in the market so it may take awhile before it truly catches up to its rivals.
3. Will Increased Development Correlate To Higher Price?
When it comes to property prices, there is no doubt that developers have some impact on prices – it’s part of the law of supply and demand. But will increased development correlate to higher prices? It is generally accepted that if more housing units are built, it may reduce housing prices by increasing supply. However, there’s a twist.
Developers seek profits, so they have a vested interest to build at premium levels. If they invest heavily in state of the art facilities, or plan to add amenities and necessary infrastructure, they may be seeking to increase the value as well as the return on their investment. The addition of creature comforts and desirable features to the underlying real estate asset, may increase the value of the real estate enough to more than make up for the cost of the development.
- In short, it is possible for an increase in development to cause a higher property price.
- When development activity is low, some investors may look to buy up discounted properties.
- When development activity is high, the properties may become more highly valued due to a scarcity of supply.
- Therefore, the correlation between development and price may not be linear.
4. Temperature Check: The Factors Driving Development
The temperature of development in a country or region is always affected by fluctuations in multiple factors. Whether it’s driven by progress, hindered by unknown difficulties, or somewhere in between, these elements all play a role in its overall progress. Here are a few particularly prominent factors:
- Demographics: population growth, migration, and diversity are powerful influences on regional development.
- Income: with better wages and greater financial capacity, development is made easier. But as inequality increases, it can become a major roadblock.
- Infrastructure and Quality of Life: it’s essential for a high quality of life that businesses have the resources to operate, and for people to have access to needed services.
In addition, geopolitical relationships play a major role in international development. The economic gravity of powerful nations can heavily influence weaker countries, and continued tiffs can damage diplomatic ties. Moreover, as the world shifts to renewable energy sources and sustainability, many countries need to spurn service provider collaborations, form new regulations, and do concentrated investment to be competitive.
5. Could ADA Outpace The Market In 2021?
The Potential of ADA
Cardano’s native token ADA, the 16th largest cryptocurrency by market capitalisation, could be on the cusp of leading the market in 2021. Through its secure blockchain technology and commitment to decentralised finance, ADA could be especially attractive to activists for a blockchain-based currency. It has already gained credibility for providing reliable financial transparency, and is strategically placed to offer an effective and secure currency platform.
It is thought that the currency could have a particular surge of application within certain economies, particularly those that have been in an unstable economic state, or who are keen to become more decentralised. The potential for a reliable financial platform away from existing centralised systems could be a game changer. This is likely to be attractive in the high risk, low liquidity markets of Africa, as well as the numerous Middle Eastern, South-East Asian and South American economies currently undergoing rapid economic transformation. With its recent developments, ADA could be well placed to solve the problems currently affecting those economies.
The ADA project stands at an important juncture, technical and market developments allowing it to make a strong case for being the next big thing on the cryptocurrency scene. With Cardano’s development activity spiking, it feels like a future with a vibrant Cardano ecosystem is only a few steps away. It will be interesting indeed to follow whether the price of ADA follows its expanding development path.