Cardano Valuation

Cardano is the world’s first peer-reviewed blockchain in the cryptocurrency space. The Cardano project began in 2015, developed by Input-Output Hong Kong (IOHK). This nonprofit foundation is a network of scientists and academics from several different universities. These include the University of Edinburgh and the Tokyo Institute of Technology. This team often doing a peer-review of all protocols before they release. In this post, we will dive into a Cardano valuation and determine if it’s worth the investment

Cardano is a third-generation cryptocurrency as well as a smart contract platform. They claim to vastly improve the scaling problems faced by bitcoin — a first generation coin — and Ethereum which is a second gen coin.

Cryptocurrency Valuations

Store-of-value cryptocurrencies like Bitcoin are easy to put a price tag on. These coins are simply a means of holding a value digitally. As a result, however much they can be bought and sold for at any given time will determine their worth. The supply and demand for these coins may change, and someone could consider them to be under or overvalued and expect the supply-demand ratio to change. However, no matter what the outcome is, by definition the price is always fair.

Platform-based cryptocurrencies like Ethereum (ETH) and Cardano (ADA) are much harder to value. Coins like these generally serve a function within a network. This could be a revenue-generating token, gas for transactions or even a symbol of voting rights. This would mean that the coin has a separate value, often wrapped up in the functionality of the platform’s system itself. Differing to store of value coins, utility tokens are able to have correct and incorrect prices. As a result, a Cardano valuation would simply be too difficult a task, and as the platform is still new, it’s subject to change anyway.

This can either be good or bad news for speculators depending upon how it’s looked at. For example, on one hand, the coin will actually have a definable function that can raise its value above zero. But on the other hand, it means the maximum potential price of the coin is capped at a finite point which is often in line with their actual function.

Cardano Valuation

In his latest research paper, Mati Greenspan, eToro’s Senior Analyst states:

Cardano, along with some other new projects represent the third generation of blockchain and aim to develop a new iteration of the technology to create more scalable and sustainable networks, while maintaining the privacy, security, and governance of the most successful and more established projects.

Be that as it may, the report also outlines that it is not easy to make an accurate Cardano valuation. It continues to explain that the ADA token is still in its infancy and as a result; many of the aspects used to determine the performance of the coin are unknown. Plus, there is always a chance that the performance of this token could change drastically in the future. The Cardano project is still in development and not yet fully operational. Because of this, it’s hard to determine the transaction volume as it is subject to significant changes once more dApps are on the Cardano platform.

Despite this, the research paper still concludes by stating:

Cardano has the potential to become a very successful project as it progresses through its long and ambitious roadmap.

ADA Price Analysis

Cardano (ADA) was unable to scale the 50-day SMA for the past week,  attracting sellers as a result. Despite this, it easily broke the support from its tight range at $0.068989 reaching close to its critical support at 0.060105 which sparked some buyers to jump at the opportunity.

Cardano Valuation

If Cardano’s support at $0.060105 breaks, there’s a chance the price of ADA could slide to $0.043722. As it stands, the bulls are trying to push the prices of ADA back over the $0.068989 level. If they can successfully do this, the virtual currency will remain in a stable range oscillating around $0.060106 – $0.082207

Key Highlights

  • The price of ADA sharply dropped below the $0.0700 and $0.065 supports against the US Dollar (USDT)
  • A key bearish trend line formed with a resistance at $0.0640 on the hourly ADA/USD pair charts. (sourced from Bittrex)
  • The ADA/USD pair risks falling again if sellers manage to push the ADA price below its $0.0620 support.

Cardano weekly and monthly price


We have a full review of Cardano on our blog page. But to summarise, Cardano is definitely worth the investment. The Cardano platform is an exciting development in the cryptocurrency space and the team behind it deserves all the support they can get. While an accurate Cardano valuation may be a difficult task, it may be too soon to tell if it even matters. The team behind Cardano are developing the coin whilst addressing all of the privacy, scaling and technological problems which today’s 2nd and 1st gen blockchains are currently facing. If you’re considering investing in Cardano, our cryptocurrency exchange offers no fees trading when using ADA/BTC pairs. Maybe you’ll be able to find an arbitrage opportunity! As the Cardano price is fairly low right now, now may be a better time than ever to invest!

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.