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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Cardano price prediction: Will the ongoing upgrade lift ADA?

Cardano investors have been waiting for the Vasil upgrade – Photo: Andreas Prott / Shutterstock.com

The Cardano cryptocurrency, ADA, has seen increasing volatility in the past months as investors in the project looked for indications of the launch of its delayed Vasil upgrade, making a Cardano price prediction a bit trickier than it might otherwise have been. 

The ADA price rose in early June, with the upgrade expected at the end of the month, but fell in mid-July as testing identified bugs that needed to be resolved before the hard fork could go live. The price then spiked three times in late July, but has been unable to sustain any lasting gains above the $0.50 level.

On 18 September 2022, the coin’s founder, Charles Hoskinson released a video saying that the Vasil upgrade had begun, and that it would be completed on 22 September. 

What has happened to the Cardano price over the last month or so, and what other factors are driving the Cardano coin price prediction? To answer these questions, we take a look at how the project is developing and what the latest Cardano expectations could indicate about the future price direction of the ADA coin.

Next Cardano hard fork approaches

Founded in 2015 and launched with a $62.2m initial coin offering (ICO) in 2017 by Charles Hoskinson, a co-founder of Ethereum (ETH), Cardano was one of the first blockchains to use a proof-of-stake (PoS) consensus mechanism. 

What is Cardano used for? According to its website, it “combines pioneering technologies to provide unparalleled security and sustainability to decentralised applications, systems, and societies”.

Hoskinson co-founded Hong Kong-based blockchain research and engineering company Input Output Hong Kong (IOHK), which develops the Cardano project along with the Cardano Foundation and Japanese software firm Emurgo.

The Cardano blockchain is named after 16th century Italian polymath Gerolamo Cardano. The network’s native coin, ADA, is named after Ada Lovelace, a 19th century mathematician who is widely considered to be the first computer programmer. 

The blockchain implements the Ouroboros protocol, which enables the network’s decentralisation and allows it to scale up while remaining secure.

Much like Ethereum, which is in the process of a series of upgrades, Cardano is implementing a series of hard forks to expand its feature set. In March 2021, the Mary hard fork enabled the network to become a multi-asset platform.

The next upgrade to the Cardano blockchain will be the Vasil hard fork, which has been delayed from 29 June to September, according to a video by Hoskinson which was released on 26 August 2022.

The upgrade is named in honour of Vasil St. Dabov, a Cardano ambassador who died last year.

According to an IOHK blog post: “The Vasil upgrade will bring increased functionality, performance, scalability, and interoperability to Cardano through new features and improvements.

“As well as bringing improvements to smart contracts, the upgrade is part of the Basho phase of the Cardano roadmap, which focuses on scaling and network and ledger optimization and will bring multiple improvements to the ledger.”

Three separate bugs were found during testing of the hard fork in June.

Hoskinson said in an update on 1 August 2022: “This is the most complicated upgrade to Cardano in its history, because it includes both changes to its programming language, Plutus, as well as changes to the consensus protocol, and a litany of other things.”

Many of the improvements that the upgrade will introduce originated from Cardano Improvement Proposals (CIPs) raised by developers in the community.

“Additionally, a number of new cryptographic primitives will be provided, and script validation processes will further see adjustments and optimisations contributing to consistency in block propagation times and higher transaction processing rates,” IOHK said.

In addition to work on the upgrade, IOHK launched the Cardano sidechain Alpha using the Ethereum Virtual Machine on 12 June 2022. 

The Milkomeda C1 sidechain launched in March. Nico Arqueros, CEO and co-founder of dcSpark and a core contributor to the Milkomeda Protocol, tweeted on 31 July that the chain had processed close to 7.5 million transactions. 

Cardano price history

Cardano price history from launch to present – Credit: Capital.com


Can ADA reach $5? The ADA coin value has tended to track the pattern of cryptocurrency market trends, rising in the late 2017 and early 2021 rallies, and shedding value during broader sell-offs.

Expectations were high when the ADA price hit its all-time high of $3.10 on 2 September 2021, ahead of the Alonzo hard fork, which introduced smart contracts to the blockchain. Developers deployed over 100 smart contracts following the launch but then, as the chart shows, the ADA token sold off and failed to participate in the November crypto rally that took Bitcoin (BTC) and Ether, the two largest coins, to fresh highs.

ADA started 2022 at $1.36 and moved to $1.63 on 18 January. It then slipped to $0.7528 on 24 February as investors sold off assets at the start of the Russia-Ukraine conflict. The price recovered to the $1.24 level in late March, but was unable to maintain the upward trend, falling back to $0.7424 by the end of April 2022. 

The coin dropped to an intraday low of $0.4065 on 12 May 2022 as crypto markets reacted to the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency and the US dollar climbed to a 20-year high against a basket of other currencies, known as the Dollar Index (DXY).

ADA rebounded to $0.6823 as crypto prices rose, then pulled back to $0.4234 in mid-June. The price moved up to $0.546 on 20 July 2022 before retreating to $0.4521, then traded at around $0.50 into the start of August. On 14 August, it reached a monthly high of $0.5939, before slipping down to trade at around $0.4575 on 31 August. 

In September, the price initially recovered as investors anticipated the implementation of Vasil, with ADA hitting a high of $0.5235 on 10 September. After that, though, market factors meant that the price dropped. Despite the news about Vasil, ADA's price dropped to $0.4344 on 19 September, before recovering slightly to trade at around $0.4451 on 20 September 2022.

At that time, there were 34.18 billion ADA in circulation out of a total supply of 34,854,947,575. This gave the coin a market cap of about $15bn, making it the eighth largest crypto by that metric. 

Cardano price prediction: Should you buy or sell the coin?

Let’s now take a look at some of the Cardano price predictions that were being made on 20 September 2022. It is important to remember that price forecasts, especially for something as potentially volatile as cryptocurrency, are often wrong. Furthermore, long-term crypto price predictions are often made using an algorithm, which means that they can change at any time. 

The short-term outlook for the ADA price was bearish as of 20 September, according to technical analysis data compiled by CoinCodex. The site’s Cardano crypto price prediction indicated that the token could recover to $0.4591 by 25 September but drop to $ 0.3923 by 21 October.

Meanwhile, CaptainAltCoin had a Cardano price prediction for 2022 that suggested ADA could drop to $0.3389 in November before potentially closing the year at $0.3588. The site indicated that there could be a recovery after that, though, with Cardano possibly worth $0.6395 in September 2023.

By 2025 the token could have re-emerged above the dollar to trade at $1.15, but there could then be a dip to $0.9784 by September 2027. By 2030, though, the site suggested that ADA could rebound to $2.88, and even made a Cardano price prediction for 2040 of a potential $5.77. 

Next, PricePrediction made an ADA crypto price prediction which was more bullish for the latter half of the decade, with its Cardano price prediction for 2030 estimating that the coin could average $10.57, up from a Cardano price prediction for 2025 of $1.63 and $0.54 in 2022, based on its deep artificial intelligence-assisted technical analysis.

Finally, WalletInvestor was rather more downbeat in terms of its ADA price prediction, suggesting that the token could drop substantially from current levels to trade at $0.0531 by September 2023. 

When looking for an ADA coin price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile. That makes it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give a long-term projection. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering making a Cardano investment, we recommend that you always do your own research. Look at the latest Cardano crypto news, market trends, technical and fundamental analysis, and expert opinion before making any trading decision. Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

FAQs

Is Cardano a good investment?

In volatile, high-risk cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the token is a suitable asset for you to trade will depend on your risk tolerance and how much you intend to invest. Never invest money that you cannot afford to lose.

Will Cardano go up or down?

It is hard to tell. While sites such as PricePrediction were bullish as of 20 September 2022, the likes of WalletInvestor were a bit more cautious. You should also remember that price predictions are very often wrong, and that prices can go down as well as up. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether MX Token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.

Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

How many Cardano coins are there?

As of 20 September 2022, there were 34.18 billion ADA in circulation out of a total supply of 34,854,947,575

Should I invest in Cardano?

This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research. Never invest more money than you can afford to lose, because prices can go down as well as up.

 

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.
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By Nicole Willing and Peter Henn


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