Why Cardano Reached Top 3 of All Cryptocurrencies
Despite having a small price value per coin
As an investor in Cardano, I document myself well before I put money in any cryptocurrency and I will share what I know with you. The development of the platform started in 2015 and was later launched, in 2017.
The founder of project Cardano with the coin ADA is Charles Hoskinson, who was a co-founder of Ethereum before he decided to start his project. He is the person who has designed the Cardano blockchain, along with his associate, a design made from the start on the proof-of-stake protocol, which doesn’t require mining.
We can see clearly that, from the beginning, this cryptocurrency was about to be something different, using an improvement over the already known Bitcoin and Ethereum protocol, proof-of-work (mining). It is one of the most transparent projects out there, in terms of presence on social media and revealing information about the project’s evolution.
Features That Make ADA Stand Out
The coin of the project, ADA, has certain advantages over other cryptocurrencies because it uses the proof-of-stake protocol, and this means there is no electrical power required for building mining rigs to obtain ADA. The coin rewards are given to the users that endorse the cryptocurrency through staking.
Cardano is unique
Cardano is a unique project in the crypto space, through the way the roadmap was conceived and followed. It allowed other projects to join the blockchain before the actual implementation of smart contracts, and now that the smart contracts are launching, the infrastructure is already in place. It has the potential to be a real Ethereum rival and we will see in the future if it will become better than Ethereum or not. Cardano right now is faster and more scalable.
We are right in the middle of the Cardano journey, in the Goguen era, as you can see in the screenshot below, taken from the official website of Cardano, in the roadmap section. It is the era when smart contracts are implemented. This is a huge step for Cardano and the holders of this cryptocurrency.
Just think about it! Cardano reached the top 3 of all cryptocurrencies until now without even having smart contracts implemented. Only the first two of all 5 steps of the roadmap have been achieved and the project is in place 3. This is a major achievement and you don’t need to be an expert to realize it.
Calculating the Position in Top World Cryptocurrencies
Let’s see how this top is calculated, to understand why Cardano is top 3. First, it has a market cap that is bigger than any cryptocurrency besides Bitcoin and Ethereum. But, what is the market cap exactly? Market cap is the multiplication between the current price and the circulating supply of the coin. This is the main advantage right now for Cardano.
What also matters and makes the project solid is the number of users on the network and the volume of transactions. Another reason for which Cardano is the number 3 cryptocurrency in the world, is the fact that the project entered the 3rd phase of the roadmap, Goguen (Smart Contracts), which is, in fact, the thing that all Cardano fans and holders have waited for since a long time now.
On the other hand, there is a thing that is in a way preventing a sudden pump for ADA and that is the number of total coins, the maximum supply is 45 billion tokens. This number is far greater than the one of Bitcoin or Ethereum.
It would be helpful for a more rapid price per coin growth if some of the coins would be somehow burned. It seems that Charles Hoskinson has mentioned that there are some plans for this in the future. Until then, the growth is steady.