The ranking of Cardano as one of the top cryptocurrencies is not based on its price. There are more than a thousand cryptocurrencies, and more are still being developed. A considerable percentage of these cryptos are higher in price than Cardano but are rated far below the chart. Cardano has been one of those few coins that are hardy and have very strong fundamentals. The reason behind why Cardano remains a force to reckon with in the crypto community is enormous and will be considered shortly.
Cardano’s price, as mentioned earlier, is not a factor behind Cardano’s hardiness, although its price has been steady and reasonable for investors to invest. Cardano, since its development, has had its native token (ADA) trading below $2. So, for as many investors contemplating either investing in Cardano or not, here’s the chance. The Cardano’s price presently is an indicator of a good time to invest, and you can easily get Cardano on Bitvavo.
Top exchange platforms placed Cardano on the same level as the first and second-generation cryptos like bitcoin and Ethereum. Although these coins are costlier than Cardano, these exchange believes Cardano has to be rated as one of the best, hence, a top 10 cryptocurrency. Here are some of the reasons why Cardano is rated as a top 10 coin
Reasons why Cardano is rated a top 10 cryptocurrency
It’s a third-generation project:
Cardano is a fully functional third-generation crypto, and unlike bitcoin, it uses the PoS consensus. Being third generation crypto means Cardano is more efficient than other altcoins and can run smart contract applications better than Ethereum. The founder of Cardano was one of the core developers of Ethereum, which means, most of the Ethereum network shortcomings were improved on the Cardano network. Hence, Ethereum is second-generation, crypto while Cardano stands as third-generation crypto. The PoS consensus makes it easy for Cardano to run transactions effectively and efficiently. Unlike bitcoin that uses a large chunk of energy to process its transactions, Cardano doesn’t. Transactions on the Cardano network are faster than usual and could be compared only to the Ethereum 2.0 network.
Although transaction charges on the Ethereum network are higher, Cardano surpasses ethereum too in running smart contract applications more efficiently and with little transaction charges.
It’s one of the largest cryptocurrencies by market capitalization:
More than anything, the market cap of Cardano, alongside its strong fundamentals, is responsible for its growth. Cardano’s price and market cap are not the same, and while some crypto price is due to their market cap, Cardano seems to be unique. Cardano is sitting comfortably as the number 5 cryptocurrency with the largest market cap having approximately $48.8 billion.
Several crypto analysts have chosen to invest in Cardano due to its large market cap compared to its price. It is predicted that Cardano will soon break out and make a huge bull run for quite a long period because it has all it takes to be better. Since the beginning of the year, the value of Cardano has surged more than five times, and that placed Cardano as interesting crypto that needs to be studied for further analysis.
It can run smart contracts effectively:
Being third-generation crypto, Cardano can run smart contracts applications effectively. More than Ethereum, Cardano is set to launch its first smart contract with Alonzo, according to a recent update on YouTube by its founder. Smart contract applications are better on the Cardano network than the Ethereum network. Although, as mentioned earlier, Cardano has its origin from Ethereum and aims to be better at every Ethereum’s mistakes or faults. Hence, the reason why Cardano can run smart contracts effectively. The Cardano network is not as old as the Ethereum network, but the workload on the network has been maximally managed for better efficiency than usual. Hence, Cardano’s price being lesser than $2 at the moment is just an indication that it’s about time investors and individuals seize this opportunity to accumulate Cardano.
With the implementation of the new smart contract alongside another improvement according to the road map, Cardano might be moving to the moon sooner than expected. More than being technologically advanced, Cardano is slowly gaining the attention of users. Both investors and private institutions are looking in that direction. Cardano is predicted to trade at $10 by 2028 or attain the $10 mark before then. Several analyses are ongoing regarding the future of the ADA coin.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.