Insight

Cardano Supply Shock May Push Price To $5

Irrespective of very strict rules, Cardano recently got the green light to list for trading on Japanese cryptocurrency exchange. Sometime in the middle of May, Cardano put in work with some of its fellow altcoins and traded right above during the dollar mark in what can be likened to a cutthroat situation as the price of Cardano’s ADA continued to show resilience.

Analysts predict that the price of ADA will soon rise to do $5 by the end of this year; a fact that stands a chance if Bitcoin hits the market with another bull run.

For now, it has been more of a rally galore and Cardano has been at it for two good weeks. Due to the supply squeeze on exchanges, Cardano’s ADA is set to climb up once smart contracts are released on the network.

Since 2021 began, Cardano’s ADA has bagged 663% of gains and has maintained a steady streak in faring better through the downtrend in May this year.T his record is far better than that of other altcoins who were tangled in the situation. Positive signs of resilience could be seen in ADA’s progress despite being a good 64.7% away from its record-breaking high at $2.29.

For now, the price of ADA has spiked ahead of the Alonzo hard fork in a week by 8% and from the look of things, a lengthy rally is in the offing. A lot of eyes are on ADA now thanks to its success at getting listed on several Japanese exchanges which have the hardest listing requirements in the world.

Cardano’s founder Charles Hoskinson has recently announced that development for the Alonzo hard fork and roll-out of smart contracts is in motion and this announcement has been met with strong whiplash from skeptics including Cardano traders and analysts.

Because the network is at the end of its road map in which smart contract functionality was set to be introduced in the Goguen Era, traders are getting restless and quite uncertain with the long wait. Hence, the bullish reaction to founder, Charles Hoskinson’s asset’s price and updates.

Right now, the price rally for ADA continues and the entire Cardano community is looking forward to the announcement of the exact date of the hard fork so that smart contracts can go live. Supporting this price rally is Cardano’s solid tokenomics and the network couldn’t ask for more.

As it stands, a small amount of ADA, precisely 16.67% of the initial supply was appropriated to the project and company’s founders. With the rest sold off to retail investors, the only supply of new ADA in circulation is from staking rewards.

 On record, up to 70% of the supply of ADA in circulation is staked while the remaining 30% is simply being swapped on exchanges. By all rights, this squeeze in supply should make Cardano’s price rally much easier though the scarcity of supply triggers the bullish posture of ADA.

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