Cardano price has had a strong recovery in the past few months. ADA price as jumped from a low of $0.0185 at its lowest level in 2020 to an all-time high of $2.4757 in May this year. This growth has propelled its market cap to more than $56.4 billion, making it the sixth biggest cryptocurrency in the world. It sits below Bitcoin, Ethereum, Tether, Binance Coin, and Dogecoin.
Cardano is a large blockchain project that was started in 2015 by Charles Hoskinson, who was also a co-founder of Ethereum. Polkadot was also started by an Ethereum co-founder.
The project’s goal was to solve some of the problems that existed in the blockchain industry then. These included substantial energy costs and scalability issues. It also wanted to help solve real-world problems in sectors like governance, education, health, and retail. For example, it can help to decentralize certificate issuance in the education sector and reduce counterfeits in the retail sector.
As part of its roadmap, Cardano has already moved from Byron and Shelley sections. Recently, it moved to the Goguen era, which is important since it introduces the concepts of smart contracts. Through these contracts, developers will be able to build Decentralized Applications (Dapps). This includes DeFi projects like Uniswap, PancakeSwap, and Maker. By so doing, it will be able to compete with the likes of Binance Chain, Crypto.org, Polkadot, and Solana.
After the Goguen era, Cardano will move into Basho, the scaling phase, and then Voltaire will focus on governance.
Cardano price action
The Cardano price has surged after falling to $0.0185 in March 2020. This price action is mostly because of several factors. First, it is because of the fact that Bitcoin and other altcoins have all surged in the past few months thanks to low-interest rates and an open-ended quantitative easing (QE) program.
Second, ADA price has risen because of the person behind the network. As mentioned, it was started by Charles Hoskinson, who is the respected co-founder of Ethereum, which has become the most influential blockchain projects in the world. Its network has been used to build popular products like Maker, Aave, and Uniswap. Indeed, investors have also rushed to Polkadot because of the name behind it.
Third, Cardano has surged because of energy reasons. It was built using the proof-of-stake consensus that is known for its energy efficiency and scalability. Many traders see it as a viable alternative to Bitcoin, which is known for its high energy costs.
Invested $1,000 in Cardano
The ADA price has risen from $0.1858 on March 13 2020 to today’s $1.17750. This is a 9,288% increase. Therefore, if you had invested in Cardano at that price, your holdings would be worth about $93,880. In the same period, if you had invested in the S&P 500, your investments would be worth $1,920 (excluding dividends).
Meanwhile, Cardano price has jumped by about 920% this year alone. Therefore, if you had allocated $1,000 to the coin, your holdings would be worth more than $10,200.