The start of trading on Coinbase did not leave its mark on the ADA rate. The Cardano team is now focusing on untapped markets.
Cardano (ADA) is one of the most consistent top performers in recent months. Not without reason: Since the scaling deficiencies of the Ethereum blockchain in the form of rising network fees are becoming more and more noticeable, many hopes weigh down on alternatives such as Cardano. Since the youngest Hard Fork Mary ushered in the Goguen era in early March, Cardano has matured into a multi-asset environment that could develop into a hub for smart contract applications in the future. What expectations investors have in Cardano was indicated when ADA started trading on Coinbase Pro.
An all-time high in ten minutes
The clock could have been set: 10 minutes after the start of trading on the largest US crypto exchange, the ADA price climbed to a new record high of 1.48 US dollars. The cryptocurrency took a steep leap in advance after Coinbase Pro had announced the start of trading two days earlier. The cryptocurrency was unable to hold that level for long. At press time, ADA is back at $ 1.26, 14 percentage points below its high. In view of the project’s filling to-do list, however, the Cardano course is only likely to retire for a short time.
Because Cardano is pushing for a mass market that has not been covered by the crypto infrastructure. During this year’s Africa Blockchain Conference, Charles Hoskinson, IOHK CEO, Cardano founder, and Ethereum co-founder, stated on March 18 that the project was “on the cusp of deals and initiatives this year”, “which millions of users through public – Bringing private partnerships into the Cardano ecosystem ”. Accordingly, the company behind Cardano, IOHK, “is currently working with local governments to integrate Atala PRISM, a Cardano-based digital identity management solution, in Ethiopia, Nigeria, Kenya, and other African countries”.
IOHK Director John O’Conner already revealed in an interview at the beginning of February that the negotiations were “in the final phase of a major government contract”. According to O’Conner, the decentralized identity solution is about nothing less than “the largest blockchain use ever made”, apart from “speculative asset trading”. In addition, another project in Tanzania is about to be completed. By granting loans via the Cardano network, one of the greatest promises that come with decentralized technologies should finally be kept: financial inclusion.
Companies recognize Cardano’s potential
This already shows the specialty and a unique selling point that Cardano could give further impetus in the coming months. Because Cardano sees itself not only as a “processing system” for crypto transactions. The development team is primarily looking for an exchange with government agencies in order to create a smart contract architecture that can be adapted to the requirements of different jurisdictions. In particular, decentralized financial applications (Defi) are likely to become a major driving force in the Cardano ecosystem.
This ability to change is accompanied by a large team of developers who have committed themselves to a scientific work ethic. In addition, Cardano is already one step ahead of its big competitor Ethereum, where the proof-of-stake process is still in the test phase.
The expectations are still accompanied by a lot of advance praise, which, according to Nic Carter, can be viewed critically. As we reported, the Coin Metrics co-founder issued a damning verdict by criticizing a lack of real-world use cases. But that could change quickly. Because, according to Hoskinson, there are already 100 companies in the pipeline.
These expectations are also reflected on the investor side. According to the data aggregator Bybit , the open interest, i.e. the sum of the outstanding contracts, only reached a new all-time high of 927 million US dollars in ADA futures trading on March 19. In addition, the day before the crypto exchange Bybit added the ADA-USDT trading pair to its perpetual contract portfolio. Derivatives trading could thus develop into a Cardano price driver in the coming months.