What Is Cardano (ADA)?
Cardano (ADA) is a proof-of-stake blockchain platform which aims to bring about positive global change. The open-source initiative also aspires to “redistribute power from unaccountable systems to the periphery to individuals,” thus contributing to the creation of a more safe, transparent, and fair society.
Cardano was formed in 2017 and was named after Gerolamo Cardano, who was a 16th century Italian polymath. The native ADA token is named after Ada Lovelace, a 19th-century mathematician widely considered as the world’s first computer programmer. The ADA token is designed to enable owners to participate in the network’s operation. As a result, users who own the cryptocurrency have the ability to vote on any proposed modifications to the coin. According to the team behind the layered blockchain, there have already been several compelling use cases for its technology, which intends to facilitate modular development of decentralized apps and smart contracts.
Charles Hoskinson announced the introduction of the Alonzo hard fork in August 2021, leading the Cardano price to skyrocket, rising 116% the next month. The Cardano ‘Alonzo’ hard fork was formally implemented on September 12, 2021, providing smart contract features to the network. Over 100 smart contracts were implemented in the 24 hours following the launch.
Cardano is used by agricultural organizations to track fresh fruit from farm to fork, while other solutions created on the platform allow educational credentials to be securely saved and shops to combat counterfeit items.
SHIB is the “DOGECOIN KILLER,” according to the SHIBA INU website, and is featured on their own ShibaSwap, a DEX., The Shiba Inu money was produced under the alias “Ryoshi” in August 2020. Ryoshi considers himself as a nobody and inconsequential, and he believes that any attempts to uncover his identity, even if successful, will be unsatisfactory.
This meme currency swiftly grew in popularity and value as a community of investors were pulled in by the coin’s charming charm along with headlines and tweets from celebrities such as Elon Musk and Vitalik Buterin. Vitalik Buterin was long thought to be the creator of the Shiba Inu, however he contradicted this on the Lex Fridman podcast on June 5, 2021.
Shiba Inu has since piqued the curiosity of other exchanges. SHIB, Mexico’s largest cryptocurrency exchange, said in September that it will begin trading on its platform. Giottus, an Indian cryptocurrency exchange, made the same announcement. Bitstamp, Europe’s largest crypto exchange, said that Shiba Inu would be listed for trade in early 2022. Korbit, a South Korean exchange, became the first in the country to offer the SHIB coin in 2021.
ADA Underperforms SHIB, and Nansen CEO Makes Fun of Cardano Brothers
The creator and CEO of blockchain analytics company Nansen, Alex Svanevik, recently turned to Twitter to mock Cardano’s native coin.”Cardano brothers never thanked me for this,” he tweeted. Svanevik was alluding to a forecast he made in March, adding, “Last chance to sell ADA over $30B market value.” Svanevik appears to have been proven true, because ADA has had a bad year in terms of price performance. The cryptocurrency has dropped 91.67% from it’s all-time high. Furthermore, it is down 81% year to year, which is higher than the meme coin Shiba Inu (77%).
Although ADA had a short-term bump in the run-up to the Vasil hard fork in September, it has been unable to gain traction since then. Despite its poor performance, ADA remains one among the top ten largest cryptocurrencies by market capitalization, with a valuation of almost $9 billion.
Svanevik’s clairvoyance may have protected some investors from severe losses this year, but there doesn’t appear to be much reason for optimism for those who are still hanging onto their ADA coins as we approach 2023. Market sentiment is very gloomy, with the sector still reeling from the FTX collapse and the US Federal Reserve refusing to abandon its hawkish monetary policies. According to U.Today, cryptocurrency expert Bobby Lee said that the next crypto bull market cycle will not begin until 2025. Svanevik’s criticism of ADA is unsurprising given his backing for Ethereum, a key Cardano rival. The Ether cryptocurrency is 75.14% lower than its all-time high.