Cardano (ADA) is in the news again, as a recent Forbes report highlighted attention and comments from experts like Gracy Chen, Managing Director of Bitget, who pointed to several factors that could influence the cryptocurrency’s growth trajectory in 2024.
Chen emphasizes Cardano’s role as a vibrant hub for developers. The platform boasts a notable number of launched projects (over 135 as of January 24), with a robust pipeline having over 1,264 projects being developed. This active development environment suggests a promising future for the Cardano ecosystem, potentially fueling long-term growth for the ADA token.
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Regarding Cardano’s immediate price trajectory, Chen says: “In the short term, ADA’s potential to deviate from BTC’s prevailing trend seems restricted. A resistance point near $US0.6 is evident.”
Staking Boom and Potential Growth
Chen pointed out that Cardano’s staking mechanism has witnessed a remarkable surge in 2024. As of January, over 22.79 billion ADA tokens were staked, reflecting a staggering 300% increase year-to-date.
This staking surge introduces a degree of scarcity into the ADA supply, potentially influencing its price positively. While Cardano isn’t deflationary, staking incentivizes users to hold their tokens, reducing the circulating supply and potentially driving the price upwards.
While Cardano has made strides in user adoption, there’s room for further improvement. Chen acknowledges that daily active users have fluctuated between 40,000 and 80,000 over the past year, with a recent trend towards the lower end of that range.
Increasing active user participation within the Cardano ecosystem is crucial for long-term sustainability and wider adoption. Cardano recently announced an influx of new projects, and these could potentially help with user participation as these projects develop.
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Cardano’s Price Trajectory
Predicting the exact price movement of any cryptocurrency is challenging. However, various analysts offer insights into ADA’s potential price targets. A prominent crypto founder recently revealed that Cardano will not stay under $1 much longer.
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The digital asset is currently trading at $0.7212. Although it has dropped 0.87% in the past 24 hours, it has climbed 17.36% over the past week and 45.08% over the past month. The asset’s trading volume is also up by over 20%, and this interest could help drive its price up.
Another significant factor influencing ADA’s price is its correlation with Bitcoin. Data suggests a strong correlation between the two currencies, with IntoTheBlock placing it at 0.95.
If Bitcoin maintains its recent upward momentum, it could potentially propel ADA’s price alongside it. The website also shows that 60% of Cardano holders will profit at its current price, and this will rise as Cardano keeps climbing.
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