Analysts affirm Cardano will outperform Bitcoin and Ethereum given ADA's enhanced scalability


  • Binance coin replaced Cardano as the third-largest cryptocurrency. 
  • Over 70% of ADA supply remains staked. 
  • With institutional investment flows to Cardano, proponents expect ADA market capitalization to recover. 
  • Cryptocurrency analysts expect Cardano to outperform Bitcoin and Ethereum based on ADA price trends. 

Charles Hoskinson, Cardano founder, made an effort to dampen Cardano's negativity and uncertainty and the cryptocurrency ecosystem. Hoskinson broadcasted from South Africa and shared potential opportunities for the Cardano Foundation.

Analysts expect Cardano to outperform Bitcoin with updates in the ecosystem

In his recent broadcast from Africa, Charles Hoskinson shared how the rising uncertainty in cryptocurrencies puzzled him. Hoskinson believes that Cardano has met every single milestone on its roadmap. 

The Cardano network has never suffered an outage, and the founder reassures users about ADA's current plans. Cardano is focused on enhancing scalability. 

The Plutus Application Backend (PAB) launch is set to ensure scalability on the network. It is scheduled for later this month. Once Cardano improves scalability, more users are expected to join the network. 

Cardano is working on another exciting development in the roadmap, layer-2 scaling solution Hydra. Alongside Plutus, Mamba Pool, Atala Prism and Mithral, Hydra's development is underway. 

Fourteen teams are working on different elements within the Cardano ecosystem. Hydra is expected to process transactions on the Cardano network in an efficient manner. Since most transactions will be processed off-chain, Hydra will use the Cardano blockchain to secure settlement. 

The Hydra protocol is currently under extensive testing. 

Despite the upcoming updates in the Cardano ecosystem, ADA's market capitalization dropped, and the altcoin no longer ranks among the top three cryptocurrencies. The percentage of ADA tokens staked remains stable above 70%; analysts are bullish on the altcoin as supply under circulation remains relatively low. 

There is a spike in institutional investment in ADA. Over $3 million capital flowed to ADA-based funds in the past week, according to a Coinshares report. 

Austin Hilton, a cryptocurrency analyst and YouTuber, has set a $15 target for ADA price. Hilton states, 

Cardano could hit $15 by the end of this bull run that we are all looking at. It's set to end in kind of February-March time frame.

FXStreet analysts have evaluated the ADA price trend and predicted that the altcoin's price is bound for profit-taking. Analysts set a target of $1.70 for the altcoin. 

 


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