Cardano (ADA) breaks record high after Coinbase listing – and still has big things in store
The start of trading on Coinbase did not leave the ADA price unscathed. Meanwhile, the Cardano team is setting its sights on untapped markets.
Cardano (ADA) has been one of the most consistent top performers in recent months. Not without reason: as the Ethereum Blockchain’s scaling shortcomings become increasingly apparent in the Bitcoin Superstar form of rising network fees, many hopes are weighing on alternatives like Cardano. Since the recent hard fork Mary ushered in the Goguen era in early March, Cardano is maturing into the multi-asset environment that could become a hub for smart contract applications in the future. The expectations investors have for Cardano were indicated at the start of ADA trading on Coinbase Pro.
Ten minutes to an all-time high
You could have set the clock: 10 minutes after the start of trading on the largest US crypto exchange, the ADA price climbed to a new record high of 1.48 US dollars. The cryptocurrency had already soared in the run-up after Coinbase Pro announced the start of trading two days earlier. The cryptocurrency was unable to maintain this level for long. At the time of going to press, ADA was again trading at 1.26 US dollars, 14 percentage points below the high. With a view to the project’s filling to-do list, however, the Cardano price is only likely to rest for a short time.
Because Cardano is pushing into a mass market that has so far been little covered by the crypto infrastructure: Africa. During this year’s Africa Blockchain Conference, Charles Hoskinson, IOHK CEO, Cardano founder and Ethereum co-founder, said on 18 March that the project was “on the cusp of deals and initiatives this year” that “will bring millions of users into the Cardano ecosystem through public-private partnerships”. According to the report, IOHK, the company behind Cardano, is “currently working with local governments to integrate Atala PRISM, a Cardano-based digital identity management solution, in Ethiopia, Nigeria, Kenya and other African countries”.
IOHK Director John O’Conner already revealed in an interview in early February that negotiations were “in the final stages of a major government contract”. According to O’Conner, the decentralised identity solution is about nothing less than “the largest blockchain deployment ever”, away from “speculative asset trading”. In addition, another project in Tanzania is also nearing completion. Lending through the Cardano network is expected to finally deliver on one of the biggest promises associated with decentralised technologies: financial inclusion.
This already shows the special feature and a unique selling proposition that could give Cardano further impetus in the coming months. For Cardano does not only see itself as a “processing system” for crypto transactions. The development team is significantly seeking exchange with government authorities in order to create a smart contract architecture that can adapt to the requirements of different jurisdictions. Decentralised financial applications (DeFi) in particular are expected to become a key driver in the Cardano ecosystem.
This mutability is accompanied by a large team of developers committed to a scientific work ethic
Moreover, Cardano is already one step ahead of its big competitor Ethereum, where the proof-of-stake process is still in the testing phase.
Admittedly, the expectations are still accompanied by a lot of advance praise, which, according to Nic Carter, can definitely be viewed critically. As we reported, the Coin Metrics co-founder delivered a scathing verdict, criticising a lack of real-world use cases. But this could change quickly. Because according to Hoskinson, there are already 100 companies in the pipeline.
These expectations are also reflected on the investor side. According to data aggregator Bybt, open interest – the sum of contracts still outstanding – in ADA futures trading set a new all-time high of $927 million as recently as 19 March. In addition, the crypto exchange Bybit added the ADA-USDT trading pair to its perpetual contract portfolio a day earlier. Derivatives trading could thus develop into a Cardano price driver in the coming months.