Since the inception of Cardano in 2017, the price has been fluctuating wildly. Because Cardano is relatively new with a low market cap, any significant update or improvement can have a tremendous effect on the price of Cardano.
The Cardano price history
Cardano is an altcoin that made its debut on the exchanges, late 2017. As a result, Cardano had two bull runs in its relatively short lifespan. This guide presents an overview of the key influences on Cardano's price.
1: Cardano’s origin
The Cardano project started in 2015 when Charles Hoskinson, co-founder of Ethereum, and Jeremy Wood decided to create their own proof-of-stake blockchain. in 2017, this resulted in Cardano raising over $60M as an Initial Coin Offering (ICO). An ICO is a form of crowdfunding with the aim of raising capital to get a start-up company off the ground.
2: It’s first market cycle
On October 2017, ADA, Cardano's digital currency, started a spectacular run from $0.022 to ending upon $1.29 on 4 January 2018. This was a percentage growth of a whopping 5900% within 3 months. This massive run was initiated by the infamous bull run of 2017/2018, where every crypto currency travelled to enormous hights. For a long time the all-time high of $1.29 held up, as Cardano like most cryptocurrencies, experienced a long period of correction. Over an 800-day period, ADA saw almost 99% of its value lost compared to the beginning of 2018. Until March 2020, where ADA picked up the pace, just like many other cryptocurrency.
Nestling in top 10
To say that Cardano has been performing since March 2020 is an understatement. Due to its huge rise, Cardano has firmly established itself in the top ten most valuable cryptocurrencies. As the major competitor to Ethereum, many investors are confident that Cardano will outperform its competition, which has led to a huge increase in value.
2021 Bears and bulls
From 2021 onwards, most cryptocurrencies began to rise rapidly in terms of value. So did Cardano. ADA entered 2021 with a value of $0.18 per coin. Within two months, this value rose above $1. On May 16, 2020, Cardano finally reached its most recent all-time-high of $2.46, making the new all-time-high 89% higher than the previous all-time-high in 2018.
Immediately after reaching its new all-time-high, Cardano experienced a correction. In three days, the price corrected from $2.46 to $1. That is a correction of 59%.
In the crypto industry, this kind of correction happens regularly, although this one was pretty severe. At the time of writing, the price of Cardano has recovered somewhat and is fluctuating. That is, until June. In June, like al crypto’s, ADA corrected itself and dropped a hefty 33%. To be continued.
How is the Cardano price influenced?
Several factors have an impact on the value of Cardano. We mentioned supply and demand at the beginning of the guide. If there are more buyers than sellers, the price will rise and vice versa. Apart from supply and demand, there are multiple other factors that have an important influence on the value of Cardano.
AdoptionCardano's goal is to become a DApp platform. A DApp (Decentralised Application) is an application that operates using the blockchain. The application is decentralized, which means that it is not run by any entity. If this adoption is accepted by governments, companies and retailers, it will drive the price upwards. When these parties do not see any benefit in the project, the price will fall. In 2021, support for Cardano's project is very strong. This is reflected in Cardano's exponentially growing community worldwide.
There are thousands of crypto currencies, while there are currently a dozen or so use cases. Although these use cases can be implemented in various ways, this means that a cryptocurrency soon has to compete with other currencies. As mentioned earlier, Ethereum is a major competitor of Cardano. Other coins such as Polkadot, Lisk. NEO etc. also have similar structures and features. When these coins increase in value, Cardano could drop due to the competition performing better. This Is why Cardano aims for constant development. To stay ahead of the competition.
Price of Bitcoin
Like (almost) all cryptocurrencies, their prices depend on Bitcoin. Bitcoin is the all-father of cryptocurrencies and therefore greatly determines the direction of their prices. When the Bitcoin price rises, other currencies rise as well. When Bitcoin prices fall, the prices of majority of other cryptocurrencies fall as well.
Charles Hoskinson, founder of Cardano, is very involved with his community. Every week he posts several videos on YouTube in which he answers questions from his viewers. Hoskinson is also very active on social media by tweeting and posting daily. When Hoskinson talks about important Cardano news, the stock price can easily change upwards. So a quick tip: pay attention to Hoskinson’s social media activity, because it can give you a leading edge.
Future of Cardano price
The crypto world is relatively new and therefore it is uncertain where the market values of cryptocurrencies will stand in the distant future. The Cardano project is a strong project with a large community. But with crypto, nothing is certain. Cardano will remain dependent on Bitcoin for the foreseeable future. The good news is that more and more important figures in the financial and institutional world are becoming enthusiastic about Bitcoin and crypto. If Bitcoin continues to rise, so can Cardano.