Cardano (ADA) is currently the worst hit of the top ten cryptocurrencies by market cap, down a whopping 14 percent in the past 24 hours.
Over the past month, it has moved down from 8th position on CoinMarketCap to 10th position, being overtaken by stablecoin Tether (USDT) and privacy coin Monero (XMR). With only a few million dollars in value between them, it is also dangerously close to being overtaken by DASH.
While admittedly all cryptocurrencies are suffering from the severe market crash, Cardano has lost almost 50 percent of its value in the past month, dropping from $3 billion to $1,6 billion today. However, despite this depressing situation, Cardano is still tipped as one of the coins to watch going forward.
Cardano founder and lead developer Charles Hoskinson is one of the most respected names in the crypto community and has the experience to back it. As a co-founder of Ethereum and CEO of Input-Output Hong Kong (IOHK), Hoskinson is no stranger to blockchain technology – and no stranger to controversy. The outspoken mathematician left Ethereum in 2014 following a disagreement with Vitalik Buterin regarding management and funding. He has since founded IOHK with another ex-Ethereum colleague and together they launched Ethereum Classic (ETC) and Cardano (ADA), which is Hoskinson’s main focus now.
So what might save Cardano?
The Cardano Foundation has a strong belief in the power of blockchain technology to solve various financial and political issues on the African continent. While these plans come from an altruistic background, breaking into a massive emerging market such as Africa could be hugely beneficial for the project going forward. If Cardano can win the race to become the blockchain of note on the African continent, it may just cement itself as a key player in the 2019 cryptocurrency landscape.
Furthermore, unlike many other altcoins that are based on the Ethereum ERC20 protocol, Cardano runs a robust proprietary blockchain that is managed by some of the best minds in the industry. Unlike traditional proof-of-work (PoW) blockchains, Cardano runs on a proof-of-stake (PoS) blockchain that uses the complex Ouroboros algorithm for coin minting and decision consensus. This makes the network far more financially efficient and environmentally friendly – key factors in the survival of future blockchain projects.
In what appears to indicate growing popularity of the coin, Cardano (ADA) was recently added to the wildly popular Bittrex cryptocurrency exchange as well as popular digital wallet Abra. These developments will likely bring extra liquidity to the coin through increased availability. Other developments include IOHK’s successful launch of its second Cardano testnet for the IELE Virtual Machine, designed to execute smart contracts on the Cardano blockchain.
But is it enough?
No matter how good your design or team, without a strong real-life use case I can’t imagine any cryptocurrency is going to survive much past this year. The blockchain industry has reached a point where investor trust has waned and now they want to see results. If Cardano can fulfill some of the upcoming developments of its roadmap, it stands a good chance of regaining its position as one of the top blockchain projects.
The massive market downturn that has cost the cryptocurrency market 80 percent of its value this year means ICOs will no longer attract blind support. It’s likely that the next few months will be an altcoin bloodbath that only the strongest will survive – but in the long run, this may be just what the crypto community needs.
Mark Hartley is an IT specialist, freelance writer, keen traveler, and blockchain enthusiast. He has worked on the trading floors of the world’s biggest interdealer broker in London and helped integrate crypto-services into IT trading systems. When he’s not searching for the world’s most beautiful beach, he’s nose deep in any crypto and blockchain related news.