Sirwin
Sirwin

Why The Hype Around Ada?

By StarkMatan | Toddler Hodler | 25 Apr 2021


 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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