The price of Cardano (ADA) has historically fluctuated between $0.01735 (October 2, 2017) and $3.10 (September 2, 2021). Cardano is a cryptocurrency that utilizes blockchain technology and provides a platform for smart contracts and decentralized applications. The ADA token derives its value from its position as the native currency of the Cardano blockchain, the development of the Cardano ecosystem, and the overall cryptocurrency market. The price development of the ADA token looks quite promising as the Cardano ecosystem is growing.
Cardano price (ADA): Historical Development
The price of Cardano (ADA) has historically fluctuated between $0.01735 (October 2, 2017) and $3.10 (September 2, 2021). Cardano’s price history starts in December 2013. This information is based on data from Coinmarketcap.
The ADA token of Cardano was created through an initial coin offering (ICO) in 2017. During the ICO, the price of one ADA was only $0.0024. Despite not having a finished product, Cardano attracted investors from the early stages of the project. Unlike many other cryptocurrency projects, Cardano gained public attention immediately after its release.
The crypto boom in 2017 pushed the ADA token’s price up to $1.33 in January 2018, representing over a 550-fold increase compared to the ICO price.
During 2018, like many other cryptocurrencies, the ADA token’s price declined. In the years 2018, 2019, and 2020, Cardano’s price remained relatively stable without any significant changes. It was a quiet period for the price.
The graph below illustrates Cardano’s price development since 2017.
In the summer of 2020, Cardano’s price rose above ten cents. The Shelley upgrade introduced staking capabilities to the Cardano blockchain, which was a significant development that also caught the attention of investors.
At the beginning of 2021, Cardano’s price started a remarkable upward trend along with the rest of the market. During the spring months, Cardano’s price surpassed the $1 milestone, and at the end of May, it saw a rapid spike above $2. In addition to the general crypto hype, the rise was influenced by the Mary Hard Fork, which enabled token creation and the NFT market on the Cardano platform.
Cardano’s price reached its peak at $3.10 in September 2021 with the Alonzo hard fork, which finally brought smart contracts to Cardano. However, the price quickly plummeted after the update due to the “buy the rumor, sell the news” phenomenon.
During 2022, the ADA token dropped to around $0.248, representing a 91.5% decrease from its peak.
What is Cardano?
Cardano is a cryptocurrency that utilizes blockchain technology and provides a platform for smart contracts and decentralized applications. Cardano falls into the category of smart contract platforms, and its competitors include Ethereum, BNB Chain, and Solana.
Cardano is known for its academic approach to technology development. It is based on a scientific approach to improving the scalability, security, and sustainability of blockchains.
Cardano was founded by Charles Hoskinson, and the project’s development is led by IOHK (Input Output Hong Kong), a company founded by Hoskinson. The image below is taken from the IOHK website.
Cardano aims to create an intelligent blockchain that enables fast and secure value transfer and the development of decentralized applications. It utilizes a Proof-of-Stake (PoS) consensus algorithm called Ouroboros, which allows for more efficient and environmentally friendly operation compared to the Proof-of-Work (PoW) system.
The native currency of Cardano is called ADA. In colloquial terms, the currency is still referred to as Cardano, for example, “I’m buying Cardano” or “Cardano’s price.” However, it practically means buying ADA tokens or the price of ADA.
ADA tokens are used in the Cardano ecosystem for transaction fees and staking (PoS). The price of ADA is determined by market demand and supply. Various factors influence the price fluctuation, such as the overall development of the cryptocurrency market, Cardano’s technical updates, news, and investors’ expectations for Cardano’s future.
To learn more about Cardano’s history and technology, read our Cardano beginner’s guide.
What gives value to Cardano’s ADA token?
The ADA token derives its value from its position as the native currency of the Cardano blockchain, the development of the Cardano ecosystem, and the overall cryptocurrency market. Let’s take a closer look at these factors.
Cardano is known for the technical features of its blockchain, such as scalability, security, and sustainability. The developers of Cardano have heavily invested in technological research and innovations. These characteristics attract developers, companies, and other stakeholders to the Cardano platform. The interest in Cardano creates a foundation for the value of the ADA token.
ADA functions as the native currency of the Cardano blockchain, used for transaction fees and staking. The Cardano ecosystem also includes various applications and services that utilize the ADA token. The higher the demand for ADA tokens, the higher their value.
The value of the ADA token is also linked to the overall development of the cryptocurrency market. Positive market trends and broader acceptance of cryptocurrencies can create a favorable environment for ADA and increase its value. It is difficult to envision Cardano increasing its market capitalization if the cryptocurrency sector as a whole is experiencing a downturn. The years 2018 and 2022 serve as good examples of this.
The Future of Cardano
The price development of the ADA token looks quite promising as the Cardano ecosystem is growing. ADA has solidified its position among the top 10 cryptocurrencies in the market. It has been in the market for over five years.
In addition to that, significant updates have been made to the Cardano ecosystem in recent years. The Vasil hard fork in September 2022 addressed many of Cardano’s bottlenecks that hindered the development of the DeFi ecosystem, among other things.
The more applications, users, investors, wallets, and transactions there are in the Cardano ecosystem, the higher the demand for the ADA token. And consequently, the higher the Cardano price or ADA price rises. Let’s not forget about staking either.
Staking locks ADA tokens out of the market, reducing the supply. This has a long-term positive effect on the price.
In our opinion, Cardano is finally ready to challenge Ethereum, Solana, BNB Chain, and other smart contract platforms! It is one of the major players in the market, and over the years, Cardano has built a broad community.
According to our assessment, Cardano’s ADA token will reach its 2021 price peak in the next crypto bull market. Even a price of $5 would not be an unrealistic idea during a broader crypto boom.
If you are interested in buying Cardano, you can find a separate article on the website about it: how to buy Cardano. It provides step-by-step instructions on how to buy Cardano’s ADA token and how to securely store it.
