One of the most requested projects for Insider analysis is Cardano (ADA). We will be discussing this coin here today! Unfortunately, ADA is down 2.5% in the last 24 hours. In the last seven days, the cryptocurrency also failed to register a positive result in the last seven days. During this period, we saw the price drop by about 7%. Cardano is ranked 8th by market value at the time of writing.
What is Cardano?
To understand what the project entails, we must first clarify the differences between Cardano and ADA. When we talk about Cardano, we mean the blockchain platform and the accompanying project. ADA is again a separate component of this. In fact, this is the associated cryptocurrency that runs on the Cardano platform.
Cardano can be used to receive and send ADA but it also has more functionality. Cardano is an open source blockchain project designed with different layers so that different financial applications can be developed and used. These applications can be used worldwide by governments, businesses or consumers. Cardano can also be used for smart contracts.
In it road map Cardano talks about several different phases. These phases correspond to the objectives set for the project. The different phases are, in order: ByronShelley, Goguen, Basho and Voltaire. If these names sound familiar to you, it may be true. The different phases are named after different famous people through the generations. Byron was the first stage and created Cardano and ADA. After this phase, the developers moved on to the Shelley phase. This phase took a long time to complete and was only rolled out to the network in July 2020.
Shelly has ensured that the Cardano network has been decentralized. In the Byron era, it was mainly the Cardano Foundation that ran the network, but she wanted to get rid of that. The Shelley era ensures that the network is managed by the Cardano community managed nodes. The network becomes kept running for different betting pools† Thanks to Shelley, Cardano is between 50 and 100 times more decentralized and the network also consumes much less power.
After Shelley, work was done on goguen phase. Launched in March 2021, this phase set out to bring another big change to the Cardano network. With Goguen, developers, and basically anyone who wants to, can design their own token. This will be comparable to platforms like Ethereum (ETH), where people can currently also create their own ERC-20 token. Additionally, users can now also develop decentralized finance (DeFi) applications and set up smart contracts through Cardano.
What else can we expect from Cardano?
As you may have guessed, this means there are only two phases left. Namely, the Basho and Voltaire phase. These are also the two main updates that we can expect from Cardano. The Basho phase will primarily focus on improving and optimizing the scalability and interoperability of Cardano. Where the previous phases were more about decentralization and adding new functionality, this phase will focus more on improving the existing Cardano foundation. With this update, growth and adoption will be better supported and transaction speed will be much better as well.
Finally, the Voltaire update is planned. In this phase, we primarily look at the chances of the network standing on its own. This will be supported by the introduction of a voting system and a treasury system. This gives network users and ADA advocates an opportunity to help determine the future of the project. So this phase is essentially an addition to the Shelley phase. The objective of both phases is to promote decentralization.
It’s not yet clear when these phases will actually be released on mainnet, but we already know what order they’ll be released in.
Cardano is one of the oldest projects and therefore also one of the largest coins in the world. A survey on CoinMarketCap also indicates that in the last 24 hours, more than 70% of respondents think that Cardano is a good project.
The chart below also shows that social media engagement has dropped for Cardano in recent days.
However, we see an increase in transactions made on the Cardano blockchain since a few months. Unfortunately, the number of transactions is still lower than it was a few years ago.
ADA price has been going down for a long time and doesn’t seem to want to stop anytime soon. At this point, we were trading at the same level as February 2021. long-term HODLers therefore, they are not really rewarded. We are still in a downward trend. There was a lot of support at $1 due to previous price action, but price has already had a rough time. At the moment we do not have any new support nearby.
Furthermore, in December last year we also saw a death cross† Hereby 50 . gone down moving average (MA) very hard during the 200 day MA. This was not very surprising based on the rapid fall in prices. The effect of this is that the price managed to fall further. When it seemed that the cross was coming, the price fell faster. Even so hard that the course is off the Bollinger Bands Shooting. At the time of writing this article, the situation does not seem to be improving. Unfortunately, the picture still looks bearish.
Is now the time to buy ADA?
The cryptocurrency market is volatile and constantly changing, for these reasons it is important that you are aware of the latest developments before making the decision to enter ADA. To help you with this, we would like to invite you to take a look at our premium channels for members Here, experienced analysts share daily updates and new technical analysis, so we can determine together when it’s time to buy or sell ADA.