Cardano (ADA): Market Recap
Before the great December bull run of 2017 few in even the most devoted cryptocurrency circles knew about Cardano (ADA).
Over the period it had a positively ballistic trajectory rocketing from 0.03USD on Nov 26 2017 to a peak of $1.33USD on January 4 2018.
This was before falling all the way back down with the rest of the market to 0.156USD at the close on the 18th of March.
The past few months have been rough for the cryptocurrency markets with the market cap falling from around $800B USD to just around $300B USD on average.
Over this time Cardano has often been seen to outperform the market, such as on the 25th of January.
The huge gains seen by Cardano in late 2017 and its relatively sudden entrance into the top ranks of the cryptocurrency markets have a lot of people asking what it’s all about and whether it will be the next big thing.
Cardano has some things in its favor compared to its competitors but it has it's share of shortfalls too.
Like Ethereum, Cardano is a blockchain platform that provides a programmable blockchain and smart contracts for dApp development. It’s key difference to Ethereum is that it’s the result of peer-reviewed open-source code.
Cardano argue that this rigorous development process is better suited for technologies as critical as a the blockchain network.
As a so-called 3rd gen blockchain Cardano has the advantage over 2nd gen blockchains like Ethereum.
This is because it comes to the table fresh and already designed to deal with the problems that early projects like Ethereum have uncovered.
The benefits of the slow development strategy used by Cardano is evident.
Planned features of Cardano give it several advantages over established competitors like Ethereum. It’s use of a more energy efficient Proof-of-Stake consensus mechanism is better from an environmental and cost perspective. As a result, the market may also give it a more general advantage if the world and the markets shift to favor such cryptocurrencies.
Along with this fundamental difference is the fact that Cardano proposes to use ‘Layered technology’. This technology separates transactional information into customizable and standard layers – with the more rigid and secure standard layers containing the basic transactional information.
A major feature of Cardano’s network is the Treasury.
This is a fund supported by 25% of all Cardano block rewards that can be used as a result of votes decided by Cardano holders.
Such funds could be used to support events such as Developer Competitions that advance the network. Ethereum and NEO do not have this specific methods.
The Treasury may give Cardano an advantage as the market for blockchain based dApp platforms heats up.
The major issue we have with Cardano is that it is a very early stage project. Many of the above mentioned features due to be released in Q2 of 2018.
An argument can be made that Cardano is more advanced than EOS. This is due to the launch of it's main-net and the fact that it already has a native token (ADA).
However, it remains to be seen how well the implementation of the PoS will function.
Most critical is the fact that their layered technology and smart contract functionality has not been tested at all.
As with any largely untested product, we would urge caution.
Despite falling far from its all-time high the buzz around Cardano appears to have increased in recent weeks.
Perhaps in advance of the roll-out of its main features.
The fact that it still appears to be trending down suggests that buyers should continue waiting for the right opportunity.
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