Cardano’s ADA breaks the $2 price barrier, should you invest?
- ADA achieved a jump of 1,400% over the past year and exceeded returns from both Bitcoin and Ethereum.
- ADA climbed even despite the skepticism about its utility from some commentators.
- With its upcoming Alonzo upgrade, ADA has the potential to climb even higher.
Cardano ADA/USD is this proof-of-stake (PoS) blockchain platform that allows owners of the ADA cryptocurrency to operate the network and vote on changes.
Developers use it to build dApps, and it was founded in 2017 by Charles Hoskinson and Jeremy Wood.
The Alonzo upgrade as a catalyst for growth
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Cardano was initially met with some skepticism, with people claiming that it’s not well known, however, it managed to jump 1,400% in value over the past year specifically.
This can be contributed to many things. For example, the Cardano Foundation launched the Developer Portal to get a lot more developers involved in the blockchain and build their dApps.
Furthermore, Cardano’s planned Alonzo upgrade, which will enable smart contracts and decentralized finance (DeFi) capabilities are moving closer, with a confirmed September 12 release date.
That being said, ADA broke the $2 price barrier yet again on August 13 and has been steadily staying over it throughout the week, so is now the right time to invest in it?
Should you invest in Cardano (ADA)?
On August 17, Cardano (ADA) had a value of $2.09.
Its all-time high occurred on May 16 where it had a value of $2.45. This is a difference of just 14%
Things get interesting when we analyze its performance in July.
It started off strong, with a value of $1.48 on July 4. Then it had its lowest point on July 20, with a value of $1.02. This signaled a drop of the value of 31%.
Furthermore, when we compare July 20 value with the value on August 17, we can see a 105% increase, which signals growth. According to data from IntoTheBlock, we can see that ADA experienced $32.73 billion in transactions greater than $100,000 in the span of the last 7 days, and it is ranked as “mostly bullish”.
Furthermore, when we take a look at the activity of the blockchain itself, we can see an average of 2.08 million addresses, with its 30-day high being at 2.13 million addresses which is an impressive number for the blockchain.
This in turn leads us to the conclusion that there is demand for the ADA token, and that a lot of users are transferring the token, which will lead to an increase in its value over time.
When we take into consideration the progress of its developer portal, as well as the planned Alonzo Upgrade, we can expect the value of ADA to grow to $2.61.
This means that it can potentially pass its all-time high value after September 12, when Alonzo goes live. This in turn makes ADA a worthwhile investment.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: