Cardano – The Obvious Investment Choice

Cardano asset has various advantages that investors should be aware of.

Some cryptocurrencies may still be worth your investment money, especially if you have a long-term perspective. Here’s why Cardano (ADA), which finished 2022 down a stunning 82%, is one digital asset worth investigating further.

Cryptocurrency fans will undoubtedly wish to turn the page on 2022, as the entire asset class lost about 64% of its value last year, owing to the high risk-off sentiment among investors. The Federal Reserve’s interest rate hikes to combat inflation were one of the key causes of that sentiment. A spate of high-profile blow-ups by crypto businesses damaged the public’s trust in the asset class, adding fuel to the flames.

An overview of Cardano Cardano is a blockchain network that uses a proof-of-stake consensus method, similar to how Ethereum (ETH) now operates following “The Merge.” This mechanism allows token holders to lock up or stake their holdings to assist in validating future blockchain transactions. ADA is intended to be significantly more eco-friendly than a proof-of-work system.

Hydra, Cardano’s revolutionary layer-2 scaling solution, will theoretically be able to execute 1 million transactions per second (TPS), far above Bitcoin’s (BTC) 3 TPS and Ethereum’s 13 TPS.

Cardano’s slow and steady development is another distinguishing quality. This is in sharp contrast to most crypto projects’ “go fast and break stuff” mindset.

Recent advancements for Cardano

Cardano completed an upgrade known as the Vasil hard fork in September, which was intended to enhance scalability and pave the path for the development of decentralized applications. According to the analytics website Santiment, Cardano will end 2022 as the network with the most development activity, surpassing Ethereum.

Cardano also intends to introduce its own stablecoin, the Djed, this month. That stablecoin will help Cardano become a more prominent participant in the realm of decentralized financial protocols, which many believe is crypto’s most compelling use case.

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Cardano’s official website also claims the technology’s ability to provide true enterprise-level solutions. Although these advances are still in their early phases, the fact that this cryptocurrency is focusing on real-world applications is encouraging.

Cardano having a lower entry price

Cardano has earned an almost 1,000% return since its public introduction in 2017, greatly outperforming the returns of the two most valuable cryptocurrencies, Bitcoin and Ethereum, during the same time period. ADA, on the other hand, is down 91% from its all-time high, with a market valuation of under $9.5 billion.

In addition to being a creative blockchain project, ADA has significant catalysts on the horizon, specifically greater developer engagement, which might push its price higher. Investors who buy its tokens now have the advantage of entering the market at a significantly lower entry point, increasing their potential upside.

Don’t put all your eggs in one basket with Cardano. However, if you understand the risks involved and have a time horizon of at least five years, allocating 1% of your whole portfolio to the token makes perfect sense.

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