The course of the Ethereum rival Cardano (ADA) has gone through the roof in the last few months. Since the beginning of the year, the cryptocurrency has risen from less than $ 0.175 to temporarily up to $ 1.48 – what are investors currently betting on?
The community has high expectations of Cardano. More and more investors are enthusiastic about the crypto project and ADA has only recently been listed on Coinbase Pro.
Charles Hoskinson’s project is hugely popular in the crypto space. According to Hoskinson, over 100 companies are already planning to switch from Ethereum to Cardano. However, not everyone is convinced of Cardano. The star investor Mike Novogratz recently asked whether there are already projects that use Cardano and that justify the extremely high market capitalization of the cryptocurrency. Then there were several who referred to Cardano as a ghost chain in the Twitter comments. A ghost chain is a blockchain that is used by no one or only by a very few.
Although Hoskinson admitted that there still are a few applications, but that was because that Cardano currently no Smart Contracts support – which, however, will soon change. In addition, Hoskinson countered the critics, who described Cardano as a ghost chain, on Twitter with a picture.
The picture shows which projects are already part of the Cardano ecosystem. Nevertheless, the designation as a ghost chain is quite justified at the moment. Although Cardano has many well-known partners, the current blockchain activity is predominantly driven by speculators. But that could change suddenly as soon as ADA smart contracts are capable.
Whether this can be achieved in the foreseeable future is still in the stars. On Reddit, several users speculate that the so-called Goguen Upgrade, which introduces smart contracts to ADA, will go fully live this year. If that is the case, it might actually still be possible in 2021 that smart contract protocols can be developed on ADA.
Professional trader: Bloomberg Terminal adopts Cardano
In addition, Cardano is now part of the Bloomberg Terminal. The Bloomberg Terminal is a computer software system that collects financial data. Professional investors, in particular, use these to analyze data and make investment decisions. In addition to data analysis, the Bloomberg Terminal can also be used as a trading platform for directly executing trades. Bloomberg’s terminal is one of the most expensive financial platforms in the world, so a subscription costs around $ 24,000 annually.
On March 15, a user shared a screenshot on Twitter showing Cardano in the Bloomberg Terminal. The picture includes a brief description of Cardano and explains how the cryptocurrency works.
Charles Hoskinson sharply criticizes Ethereum
In a recently published live stream, Charles Hoskinson sharply criticized Ethereum.
Decentralized Finance (DeFi) and Non-fungible Tokens (NFT) on Ethereum are unusable. The entire Ethereum ecosystem is not sustainable.
The Cardano co-founder is aware that Ethereum 2.0 should improve the sustainability of the Ethereum ecosystem, but he believes that it will take a long time until implementation. ADA, on the other hand, has already been further developed than Ethereum, according to Hoskinson.
Unlike Ethereum, Hoskinson is convinced that ADA will be built to last. In addition, he believes it is possible that the Cardano DeFi sector will be one of the largest in the entire crypto space within the next 365 days. As a justification for his arguments, Hoskinson cites that ADA was designed by scientists in Haskell. Haskell is clearly superior to the programming language of Ethereum (Solidity) and is particularly suitable for the development of protocols from decentralized finance.
He even goes so far as to say that Cardano would only fail if the entire crypto space itself failed:
If Cardano fails, cryptocurrencies will fail. Because we’re doing everything right.
Hoskinson emphasizes Cardano’s decentralized structure and advanced governance system. In his opinion, this is superior to all other smart contract platforms. The next months and years will show whether Charles Hoskinson’s statements will actually come true. At the moment, it looks like Hoskinson and his blockchain will enjoy the trust of investors because the ADA price is growing and growing.