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- Cryptocurrencies
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It's barely been a week since Finder.com published a bearish price prediction for Cardano in 2022 – and already it's been debunked.
The 54 panellists put Cardano's end-of-2022-price-prediction at $0.63.
The results were based on three main hypotheses:
Twitter has already called 'FUD' on each of these complaints – below we will debunk them each in turn.
We'll also be including case studies from other cryptocurrencies like leading stablecoin reflection token EverGrow which prove why these theories are way off.
Claim: "ADA will either make the world's most decentralised blockchain or nothing. There will be no middle line," Ramani Ramachandran, CEO at Router Protocol.
Ramachandran put the price prediction for ADA as finishing 2022 at just $0.20.
The idea that Cardano is all-or-nothing is fundamentally flawed. During the bull run in early 2021, ADA shot past a price of $1 as the rest of the cryptocurrency market went into overdrive.
By late August, the price of ADA hit $3 – that's a 200% increase on our current ADA target of just $1.
Cardano did that without being the world's most decentralised blockchain, and without even having smart contract capabilities. According to the latest Cardano weekly update some 91 projects have launched on the Cardano blockchain since smart contract functionality was introduced with the Alonzo hardfork in September 2021.
More than 1,000 projects are also in development on Cardano.
ONe of the main sources of FUD for Cardano is that the blockchain platform has a very low total value locked (TVL) compared to blockchain platform rivals like Ethereum, the BNB Chain, and Tron – the FUD says that Cardano needs to beat the TVL of these rivals or it has no chance of success.
According to DeFi Llama, Cardano's TVL is $270 million. This puts Cardano in 29th position with Ethereum in the top spot with $54.7 billion TVL, BNB in second with $6.6 billion TVL, and Tron in third place with $5.92 billion.
But as Cardano founder Charles Hoskinson pointed out in May, DeFi Llama does not factor in Cardano staking to TVL. This is because you do not need to lock your ADA tokens away to stake them – instead, you use one of the dedicated Cardano wallets like Daedalus.
Cardano has one of the highest percentages of total supply staked in this way with 73% of all ADA in an unlocked staking pool. Factoring this in would give Cardano a TVL of $14 billion today – i.e. putting Cardano in the second spot above BNB and all its other rivals.
Mistaken analyses lead to the idea that Cardano's blockchain has little support.
If we consider that Cardano actually has the second-highest TVL of all blockchains in crypto, its 8th position in the crypto market cap rankings starts to make more sense. With a current price of $0.534, Cardano has less distance to get to $1 and is sure to hit this figure at the onset of the next bull rally in 2022.
The idea that cryptocurrencies need to be number one to give any value is an oversight.
Take EverGrow as an example.
This cryptocurrency only launched in September last year but has already become the world's leading stablecoin rewards token with $37.5 million paid out to date. This is with a current market cap of just $60 million.
EverGrow charges a 14% transaction tax from which 8% is rewarded in BUSD stablecoins to investors. This unique approach to crypto passive income has made EverGrow lead the reflection token space and be among the most rewarding tokens despite not being in the crypto top 50 yet.
Evidently, there's a big gap between opinion and reality.
Claim: "I don't believe there is a use case for Cardano, and it will eventually go away," Charles Silver, exec. Chairman for Permission.io.
This shocking perspective also came with a bearish $0.20 for Cardano.
It's also completely untrue.
The Cardano blockchain is already being used in industries as far-reaching as agriculture, education, fashion, charity and NGOs, subscription management, and more.
Just last week media headlines were buzzing with the new NFT project that lets you buy a lifetime subscription for Spotify or Netflix and then sell it for a profit when you don't want it anymore – this Revuto project launched on the Cardano blockchain.
There's also the Altra Prism project which offers verifiable academic credentials for graduating students and has been implemented nationwide by Ethiopia's Ministry of Education to benefit 5 million students, 750,000 teachers, and 3,500 schools.
Then there were the 1 million trees planted by the Veritree charity which helped track every single ADA spent (Cardano's blockchain helped store and share GPS coordinates, photos, and other information for every tree planted to every donor).
The New Balance footwear brand also inked a partnership with Cardano back in 2019 to stop counterfeit goods from entering the market – this was the first commercial deployment of the Cardano blockchain.
No use cases?
It's unclear what sources this top crypto analyst is reading, but they're disingenuous, to say the least. With more than 1,000 projects yet to launch – and the Vasil hardfork update coming at the end of July – Cardano will have more use cases than ever before in the next price rally and should sail past a price of $1 before 2022 is out.
The cryptocurrency industry is still very much in development.
The vast majority of Cardano projects are yet to launch – but that doesn't mean there isn't a blueprint for future use cases.
EverGrow was selected as the crypto token to power the world's first cloud-streamed metaverse VR arcade (The Abstract) and to integrate its NFT marketplace and content subscription platform Crator despite not yet being fully launched.
The Abstract metaverse is expected to take the VR gaming space by storm when it launches before the end of 2022.
EverGrow's utilities are nearing completion according to the utility progress reports on its website.
To write this kind of potential off as having 'no use cases yet' would be a big oversight at the cost of your investment portfolio.
Claim: "ADA's price and hype are way too high given its relatively low total value locked compared to its competitors. The project was founded in 2015 and released in 2017, yet it has squandered that early-mover advantage to competitors who have recruited developers and built at a faster pace."
Many of the Founder.com analysts took aim at the fact that Cardano launched in 2017 and only in the past year launched smart contract capabilities for developers on its blockchain. The time is taken for Cardano to fully open its low-cost, energy-efficient and scalable ecosystem up was a major reason for the low prediction of $0.63 by the end of 2022.
It's odd because only in January did the same Founder.com analysts predict ADA would finish 2022 at $2.79.
In the meantime, the biggest event that could have caused this for Cardano was the delay of its anticipated Vasil hardfork to late July. The Vasil hardfork will bring increased functionality, performance, scalability, and interoperability to Cardano. It's expected to ramp up development and bring the Cardano blockchain more alive for dApps and DeFi projects.
It's important to know that Cardano is the only blockchain where updates are peer-reviewed by leading computer scientists and engineers around the world and at leading universities.
Updates might be slow and delayed, but they work.
In the intervening months, the Solana blockchain suffered a full network outage for over eight hours. The Solana team required key validators to help reboot the blockchain a big blow to the decentralised status of the network.
Cardano has suffered no such outages which should indicate the benefits of a slow, academic, and rigorous approach to technology that holds billions of users' funds.
Only one of the Founder.com analysts picked up on this. Morpher CEO Martin Foehler said that "slow and steady wins the race". Meanwhile, Matt Lobel, founder of PLAYN, said that Cardano "continues to grow and has not hit some of the quality issues that other projects have."
Froehler predicted that ADA would hit a price of $1 before the end of 2022 – while Lobel predicted a rally to $1.50.
EverGrow came under criticism when its planned rollout of the LunaSky NFT marketplace was delayed by the crypto market crash.
According to the EverGrow chairman Sam Kelly, an experienced investment professional, the delay has turned out to be a 'blessing in disguise'.
Launching applications just for the sake of it often means that bugs and issues affect the UX and the project as a whole. Furthermore, to launch as major cryptocurrency prices are falling just to hit a deadline could've spelled disaster for a successful start.
LunaSky is designed to compete directly with OpenSea as a leading NFT marketplace on the much cheaper and faster BNB Chain. Minting fees are as little as $0.20 compared to $15 and even $30+ on the Ethereum-based OpenSea.
Crucially, all profits from LunaSky will be used for buyback and burn – i.e. to remove more EverGrow ($EGC) permanently from circulation.
Taking advantage of the delay, EverGrow announced they have had extra time to go back & forth with devs to iron out issues as well as making plans to bring in 50,000 users in its first week of launch and then bring in top NFT artists to the platform.
Contrary to the FUD, sometimes a delay actually means the delivery of a more quality product.
