Cardano is a blockchain platform and it has its own internal cryptocurrency called ADA. It is now the third largest crypto currency by market cap, currently around $89.3B. It’s also enjoyed a euphoric rise in the past fortnight, gaining over 100%, hitting a high of $2.97. But what’s in store for Cardano and the crypto world in the upcoming months?

Green Crypto

One major reason causing Bitcoin to pullback in May of this year was the concerns over the power usage that was needed to mine it and the damage it caused to the environment. This is where Cardano is different. They use a proof of stake system that randomly allocates coins to users. Rather, Bitcoin uses a proof of work system, a global network of computers running at the same time for transactions to take place. This method encourages more computing power so more transactions can take place.

Cardano recently announced a major upgrade which will go live in September. This will make use of smart contracts into their blockchain. These two catalysts are driving the demand for ADA now, but I believe we are only at the beginning of this next bull run.

Cardano listing in Japan

Cardano will also get listed on Japan’s exchange, tomorrow, August 25th. Japan has strict conditions for crypto to be available, and Cardano will now join the exchange alongside Bitcoin and Ethereum. Keeping an eye on the price action tomorrow will be key to see how much demand is created now that the Japanesse audience can tap into this coin.

Concerns

My main concern for Cardano (and any other alt-coin) is the connection to Bitcoin. As the market leader and the one in the spotlight, when BTC pulls back, so will all the other coins. I think there will be much more strength for coins like Cardano, Ethereum and XRP when they can establish themselves away from Bitcoin. This may happen when the market caps overtake BTC. Ethereum is currently 55% of BTC market cap, and Cardano is 25%.

Price target

Although Cardano has made 100% in the last two weeks, I see much more upside. Crypto is really getting attention again and preparing for its next run. Cardano has its own catalysts in the next few months.

Breaking $3 is the first step for ADA, which I can see happening in the next day or so. I think $4 can be reached by the end of September and some crypto analysts have given predictions of $8-$10 by the end of the year. If this next bull run takes off, Cardano’s smaller market cap will allow greater gains in comparison to Ethereum and Bitcoin.

3 thoughts on “Cardano to take over Bitcoin and Ethereum?”

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