Since the beginning of February, the price of the ADA token of the Cardano project has increased by 300% — from $0.35 to $1.33. Its market capitalization now stands at $32.7 billion, which allowed Cardano to rise to third place in the CoinMarketCap rating. Analysts believe that this is far from the limit — by the end of the year, the coin can grow another 10 times. The main driver of such rapid growth is the upcoming launch of the Goguen update, which will allow users to create their own tokens, launch smart contracts, decentralized applications (dApps) and DeFi protocols. In light of this, we recall how the project developed, why Cardano is considered one of the main competitors of Ethereum 2.0 and what is the probability of a further price rally of the ADA coin.
Cardano is a decentralized blockchain system conceived as an alternative to Ethereum, but faster, scalable and secure. Currently, the project has only a native ADA coin, but soon users will have the opportunity to launch smart contracts and sidechains and create decentralized applications (dApps). Moreover, in the future, Cardano users will also be able to create, transfer and accept custom tokens with minimal fees. Cardano runs on a DPoS consensus algorithm called Ouroboros — there is no mining in it, and the generation of new coins occurs due to ADA staking. ADA coin holders can also participate in voting on decisions on the future development of the platform.