Cardano, long considered an Ethereum competitor in the smart contract space, has faced its share of criticism, particularly regarding its perceived centralization. This skepticism has allowed Solana to surpass Cardano in market capitalization, with Avalanche (AVAX) hot on its heels. The crypto community’s preference for Solana has been evident, especially in the meme coin market over the past two years. Solana’s fast network and low fees have driven its rise, but Cardano’s upcoming Chang Upgrade aims to level the playing field by enhancing its network speed and security. Can Cardano shake off the critics and reclaim its position? Here are five signs that it might:
Embracing Decentralization – The End of Genesis Keys
Since its launch in 2017 by Ethereum co-founder Charles Hoskinson, Cardano has struggled with perceptions of being overly centralized. Critics have pointed to its network design and the influence of key stakeholders as reasons for concern. As recently as May 2024, a prominent European crypto fund manager criticized Cardano for having “Genesis keys,” which allowed a small group to change the network’s rules unilaterally. However, the Chang Upgrade has put an end to these keys, transferring governance to the network’s anonymous token-holding peers. This move towards more decentralized governance could help Cardano overcome its critics and align more closely with the ethos of cryptocurrency.
Bullish Price Predictions- Analysts See a Bright Future
Investor analysts are increasingly bullish on Cardano’s price prospects, with some predicting significant gains in the near future. Popular Elliot Wave theory analyst XForceGlobal has set a $3 price target for ADA by mid-2025, noting that the token experienced an 18,000% increase during its last bull run. Meanwhile, Crypto X analyst King Crypto Aryan has made a more ambitious prediction, targeting $75 for ADA by the peak of the next bull cycle, contingent on Bitcoin reaching $500,000. While these predictions may seem far-fetched, they reflect the strong bullish sentiment within the Cardano community.
Cardano’s blockchain has always been faster than Bitcoin and Ethereum, processing over 250 transactions per second (TPS). However, the Chang Upgrade is expected to significantly boost its throughput capacity to over 1,000 TPS, putting it on par with Solana, which clocked in at 1,053 TPS in May 2024. This increase in speed could make Cardano one of the most competitive platforms for decentralized applications (dApps), addressing one of the main criticisms that has held it back in comparison to Solana.
Rising Development and Staking Activity
Cardano has seen a surge in development activity and network usage, with Q4 2023 marking it as the blockchain with the most active development. The number of smart contracts on Cardano increased by 67% in just three weeks in March 2024, according to Bitget Managing Director Gracy Chen. Additionally, 65% of Cardano’s $12 billion ADA supply is currently staked, indicating strong community support and security. This level of staking surpasses Ethereum’s 28% and demonstrates the Cardano community’s commitment to the network.
Cardano’s upcoming Chang Upgrade has attracted significant interest from large investors. In late August, whale-sized wallets added 170 million ADA tokens to their holdings in just 48 hours. This surge in whale activity suggests strong confidence in the upgrade and its potential to drive Cardano’s market position forward.
As Cardano prepares for the Chang Upgrade, the network is poised to address long-standing criticisms and enhance its competitiveness. If these five signs are any indication, Cardano may be on the verge of shaking off its skeptics and making the kind of market gains that have propelled Solana to the top. The coming months will be crucial in determining whether Cardano can capitalize on this momentum and reclaim its place as a leading blockchain platform.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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