Why The Hype Around Ada?


 Cardano has promised us smart contracts for the end of 2020. Did we get those? No. Cardano has also promised us NFT support for end of 2020/early 2021. Did we get it? No. Ok, let's check the price of Ada during 2020 / Q1 2021:

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We can observe steady, but small rise. And taking into consederation that during a bull run everything rises, and seeing that most of the top 20 has moved a lot more (not even taking into consederation some shitcoins going as wild as +1300%), we can see that ADA is not making much waves. Which raises the question, why there is a large portion of internet community that believes in ADA so much and predicts ADA being valued at 5 or even 10 and more USD by the end of this run?

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And I believe I have an answer - supply shock

You should know by now what is Uniswap and PancakeSwap. Those are DEFI exchanges that operate on Ethereum and Binance Smart blockchains respectively. A lot of small projects that wanted to be available on those exchanges needed to provide ETH and BNB for liquidity and that maked a supply shock, which is one of the reasons why BNB has exploded:

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Similiar, once Cardano launches it's mainnet, and after that launches it's decentralized exchange - Cardax, any of the projects that will be on the cardano blockchain will need to provide ADA for liquidity, thus making a supply shock, which will result in the price exploding.

Personally, I will try to get as much ADA as possible, especially during dips, as I see ADA near 1 USD as perfect buy opportunity. What do you think, tell in comments. And, as always, thanks for the read!

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