- Although the price of Cardano has been on a downward trend, activity on the protocol network has increased substantially.
- Popular crypto influencer Lark Davis claims the price of ADA is about to take off with the upcoming DeFi projects.
- At the moment, Cardano powers over 4000 smart contracts on its platform.
When Cardano ushered in the era of smart contracts on its platform with the successful launch of the Alonzo Mainnet, ADA rallied to a record price to become the 4th largest cryptocurrency by market cap – with a market value of about $75 billion.
Alonzo also saw ADA hit $3 for the first time since its inception, surpassing Binance Coin (BNB) to become the third-largest digital asset by market value. However, the coin has been unable to sustain this uptrend, witnessing a small correction.
For the past few weeks, Cardano (ADA) has been forming lower lows from a close of $2 in October to the current low of $1.43. At press time, Cardano (ADA) is changing hands at $1.59, up 1.5% in the past 24 hours, according to CoinGecko data.
Despite the recent fall, several cryptocurrency analysts are still optimistic about ADA’s future. Famous market analyst Lark Davis believes the price will rise more in the coming days, thanks to the upcoming DeFi projects such as SundaeSwap and Ardana.
“I feel like it is about time for #cardano to start taking off again. We are about to see a lot of #defi stuff coming in like Ardana and Sundae Swap that will drive increased demand for $ada.”
The rise of dApps and NFTs on Cardano
Cardano has substantially grown a wide range of dApps and NFT projects and getting ready to power more applications.
In a recent tweet, on-chain data analysis platform Coin98 Analytics noted that smart contracts development on Cardano is on the rise.
“A huge wave of new Dapps has emerged on the #Cardano blockchain.”
Additionally, NFT investor Patrick Tobler, added that NFT-MAKER, one of the earliest dApps on Cardano has already powered over 400,000 NFTs.
“@nftmakerio has been around for months. One of the earliest dApss on Cardano, responsible for more than 400,000 NFTs. Many of the projects are directly dependent on NFT-MAKER.”
Cardano price projection
The existing chart patterns suggest ADA price could fall to as low as $1.26 should the coin fail to find significant support to stop further drop. The plunge continued after eToro delisted ADA on their platform for clients in the US due to regulatory concerns.
Earlier, the United States Securities & Exchange Commission (SEC) had warned that some cryptocurrencies should be classified as securities. eToro might have delisted Cardano and other similar cryptocurrencies on fears that they aren’t commodities. Investors tend to sell off coins when a major exchange delists a token, leading to a further decrease in its markets value.
Putting the short-term price slump aside, analysts believe Cardano (ADA) could hit $5 in no distant time.