Why Cardano Crypto Appears to Be a Risk Worth Taking for Investors
Cardano's (ADA) price prediction is in focus as investors seek to know if the crypto is still a good investment in 2021 after its sharp rise.
Aug. 9 2021, Published 8:36 a.m. ET
Right now, Cardano (ADA) is on many investors' radars seeking the next cryptocurrency to explode. ADA's price has climbed more than 700 percent since the beginning of 2021 and has outpaced Bitcoin and Ethereum. The altcoin trades above $1.45. Investors want to know Cardano’s price prediction to know where it might end in 2021.
Cardano is among the blockchain projects trying to challenge Ethereum, which has become something like the pre-eminent operating system for blockchain apps. Cardano’s technology can be used for identity management and supply chain tracing.
Why Cardano's (ADA) price is going up
Cardano’s rise can be attributed to several factors. First, Ethereum has been a big winner for investors with lifetime returns on investment of about 90,000 percent. Many investors seeking Ethereum-type returns are picking up ADA coin.
Cardano uses the energy-efficient PoS (Proof-of-Stake) model, which makes it a more attractive crypto investment than Bitcoin and Ethereum currently to climate-conscious investors.
Another reason behind Cardano’s latest surge is linked to attempts to buy the dip. Although ADA ranks among the biggest altcoin gainers in 2021, it still trades sharply below its all-time high.
Is Cardano a good long-term investment?
The reason you would be interested in Cardano price prediction is to find out if the crypto is a good investment. Cardano has paid off well for many investors. For example, the altcoin boasts a return on investment of nearly 7,000 percent since its October 2017 debut.
There isn't a guarantee that ADA crypto will continue to deliver strong returns, but it has the potential to impress. For example, Cardano is working with Ethiopia on a blockchain-based academic credentialing system for its students. The system is expected to launch in September or October.
If the project is successful, Cardano could secure more identity management deals not only in Ethiopia but in other countries as well. That would bring more attention to ADA coin and potentially boost its value.
Cardano price prediction and how high it could go in 2021
The highest Cardano price has climbed in 2021 is $2.46. For the crypto to get back to that peak before the end of 2021, it would need to gain 14 percent per month on a compounded basis for the remaining period. At that same growth rate, ADA's token price could surpass $10 before the end of 2022 and reach $800 by 2025.
Should you buy or sell ADA crypto now?
If you have a long-term view, Cardano looks to be an attractive buy now. First, the current pullback of ADA's price from the peak gives you a chance to buy the dip. Second, Cardano’s technology has strong commercial potential in identity management and supply chain tracking to fight counterfeiting.
Cardano could benefit from the DeFi boom. However, there's also the infrastructure bill and its potential tax consequences when investing in cryptocurrencies.
