How High Can Cardano Go?

Introduction

Cardano is a third-generation blockchain network that works on Proof-of-Stake (PoS) consensus mechanism. Ethereum co-founder Charles Hoskinson created Cardano to improve on Ethereum’s limitations like lack of scalability and interoperability.

Even though the project has amassed a dedicated and loyal community, who refer to Cardano as “Ethereum killer”, Cardano hasn’t yet succeeded in gaining more user adoption than Ethereum. Adding to that, the price of Cardano has recently taken a beating as a result of the US SEC’s allegations on major cryptocurrencies.

In this article, we will see how high can Cardano go in 2024 and major factors that can influence its price for the time being.

Price History of Cardano

With a starting price of $0.02461, it started as one of the unique projects in 2017. Cardano stands out from the rest of the blockchains because of its qualities like its scientific research and peer review system for implementing new upgrades on the network.

The potential to flip Ethereum and the strong track record of Charles Hoskinson made the community believe in the project. As a result, the Cardano (ADA) price gained momentum and reached an all-time high value of $0.997 in the 2018 bull run. But, it didn’t last longer. In the following year, Cardano price hovered at around $0.10.

In the next crypto bull market in 2021, Cardano’s price increased in line with the rest of the market. It eventually reached a new all-time high value of $3.10 in September. From then, the price was on the long-term downtrend for several months.

While the fall of major crypto companies like FTX crash in 2022 is a part of the reason for crypto market crash, investors are also growing impatient about the slow development and practical use cases of Cardano.

The Cardano price witnessed a massive price surge at the beginning of December, 2023. From around $0.24 in October, its price went to as high as $0.66 in the second week of December. With the price surge, Cardano entered the list of all cryptocurrencies that went on a price rally by the end of 2023.

The increased dApp activity on the Cardano blockchain and several impressive features like no min staking amount and no slashing for operators have contributed majorly to the price surge of Cardano. Fast forward to January, 2024, Cardano’s price went back to its downward price movement, making investors wonder whether it will rise in the coming months.

3 Major Factors that Influence Cardano’s Price

Development and Growth

The Alonzo hard fork on Cardano, that took place in 2021, was a success but it needs a few years to practically apply its use cases. Though the Vasil upgrade in 2022 made up for it by reducing transaction fees and increasing scalability, Cardano needs to prove that it can gain mass user adoption compared to Ethereum, Polkadot, and others to maintain its reputation.

The development activity on Cardano’s public GitHub repositories has increased astonishingly in September 2023, as per Santiment analytics. The community believes that it contributed to the overall growth of the project and a price surge of Cardano in December. If the development activity continues the same way in the coming months, we can witness another price surge in 2024.

SEC Lawsuits

The US SEC sued Binance and Coinbase, two largest crypto exchanges, in June, 2023, claiming that they were selling unregistered securities. The SEC reportedly called several major cryptocurrencies, including Cardano, securities. Under the pressure of SEC, Binance delisted Cardano and Polygon perpetual contracts in August, 2023. As a result, Cardano’s price decreased by over 30% and the coin is still recovering from the blow.

Whether or not Cardano’s price regains momentum depends on what happens with these lawsuits. In a lawsuit against SEC, Ripple had a partial win on July 13, 2023, when the Judge ruled that XRP is not a security when sold on crypto exchanges, which may reflect in these lawsuits as well. In case the SEC loses in the final judgement of the Ripple lawsuit, we can see a rise in Cardano’s price along with the rise in the prices of other cryptocurrencies.

Global Market Sentiment

The health of the global economy also impacts the crypto market, which in turn impacts Cardano’s price. We have already witnessed this when the US Federal Reserve increased interest rate hikes. Everytime, the FED raised interest rates, it resulted in a cut back on spending and less investments in stocks and cryptocurrencies.

The FED stopped its rally of interest rates hike in June, 2023 but we can see more interest rate hikes this year. If this continues, investors withdraw from making new investments in Cardano, which would not support a rise in its price.

How High Can Cardano Go in 2024?

Considering all the factors mentioned above, we cannot surely say how high Cardano can go in 2024. Crypto is inherently a volatile market and a lot of external and internal factors of the industry dictate its future performance.

Cardano price is trading at around $0.468, dropped by 24% in the last 30 days and 12% in the last week, as of January 24, 2024. If the development activity increases on the Cardano blockchain, combined with user adoption, we can see a price rise. In addition to that, the upcoming Bitcoin halving event can bring back the bull market and influence prices of altcoins. If that is the case, the ADA price can go as high as $3 in 2024, and can even breach its previous all-time high.

Where to buy ADA ?

You can buy Cardano (ADA) on the best crypto exchange platforms to benefit in the next crypto bull run. Here is the list to helsp you choose among the popular exchanges :

FAQs

Can Cardano reach $100? 

Considering the current bearish trend and uncertainty created by the SEC lawsuit, it is highly unlikely for Cardano to reach $100.

How high can Cardano’s price go in the long-term?

Cardano can go as high as $5 to $6 or even $10 by 2030. If the development and growth of Cardano takes place with good user adoption, and the crypto bull market returns this year, it could record new all-time high in the next few months.