The world of crypto is in a state of constant flux. The unpredictable nature of the advanced digital currencies is what keeps people coming back for more, and there are always dramatic twists and turns as each coin rises and falls.

Investors who have been keeping an eye on the Cardano price, will have noticed that it isn’t performing as well as it has in recent times. Could this be the beginning of a downturn for the asset or is it merely a momentary blip with investors still bullish on Cardano? Let’s find out.

What is Cardano?

Cardano is a blockchain platform that makes use of the native ADA cryptocurrency. Cardano was launched in 2017 by Jeremy Wood and Charles Hoskinson, who left Ethereum three years previously to realize their own blockchain vision.

Cardano makes use of a proof-of-stake consensus mechanism and was one of the first blockchain platforms to do so. This is a more environmentally friendly way of validating crypto transactions and as a result, is becoming increasingly popular throughout the industry as companies strive to become more sustainable.

Proof-of-stake is fast becoming the preferred choice over the traditional proof-of-work consensus mechanism, which is still used by Bitcoin. Proof-of-work requires enormous amounts of computational power and is extremely energy intensive. Proof-of-stake, on the other hand, is far more efficient, transactions can be verified without the need for advanced hardware systems, and is the perfect solution as we work towards a more sustainable world.

Unlike other blockchain platforms, Cardano does not have a white paper detailing the asset’s ethos and objectives. Instead, Cardano lets its design speak for itself, with advanced systems used in an attempt to address common crypto issues including compliance and scalability.

Cardano has secured a range of important partnerships, including with the government of Ethiopia, the Georgian Ministry of Education, New Balance, and British DJ Paul Oakenfold. More recently, billionaire businessman Mark Cuban has registered an interest in the asset, and rumors are circulating that he has in fact invested in Cardano and is working with the company in an advisory capacity.

The Rise of Cardano

Cardano flew under the radar for the first few years of its existence. However, excitement about the asset began to build in late 2020, before exploding in January 2021. From a price of $0.18 on 1st January 2021, Cardano shot up to $0.36 by the end of the month, before going on to hit $1.32 by the end of February.

Things continued to get better for Cardano, the asset went on to reach a price of $2.17 in May and then its record all-time high of $3.10 at the start of September, representing growth of 17,760%.

What has Happened Since?

After such an incredible performance, a downturn was to be expected. Cardano’s price has steadily dropped since its all-time high in September. However, it always remained above $0.30, until December 2022 when it fell to a low of $0.24.

Since the turn of the year, Cardano has had something of a resurgence. Its price rose from $0.25 on 1st January 2023 to $0.40 by the end of the month. The asset dipped slightly throughout February before rallying again in March. The asset is up by 56% this year, hitting a high of $0.45 on 15th April, and currently sits at a price of $0.39.

What is behind Cardano’s recent success? It’s likely that the general health of the crypto industry has benefited a number of assets, Cardano included. Recent banking crises at Silicon Valley Bank, Signature Bank, First Republic, and Credit Suisse have rocked the financial sector and worried investors in traditional assets and securities.

Blockchain and crypto assets offer a decentralized investment option that is distinct from these traditional institutions. This means that, as people lose trust in banks, more and more investors are funneling money into blockchain tech.

Are Investors Still Bullish on Cardano?

Before we can answer whether investors are still bullish on Cardano, first we have to understand what a bull market actually is. In investment terms, a bull market refers to a period of extended, sustained growth. Generally, bull markets are when a market grows by at least 20% and is preceded by a period of decline.

Markets are incredibly reactive and difficult to predict, so it can be hard to judge if a bull market is indeed taking place. However, the signs are certainly looking good for Cardano. The asset is up more than 15% in the past 60 days, and experts predict we could see it go on to hit new highs later this year.

Featured Image: Unsplash @ Maxim Hopman

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