People who have been a part of the crypto market in the last few years must be familiar with Cardano. In 2022 alone, this digital currency broke all resistance lines by rallying 82% higher than its previous bottom. Even when some coins went on a correction path, Cardano maintained that growth by slowly increasing its level.
Moreover, the continuous support of Charles Hoskinson, the mastermind behind Cardano’s development, ensured everything happened smoothly. Cardano is one of those few cryptocurrencies that keeps updating itself through various pushed projects. However, for most people, the question remains the same regarding Cardano on whether it is still a good investment coming in 2023.
Present Scenario of Cardano
Until recently, Cardano was coming under a proof of work system, but after some quick developmental agreements across the blockchain, Cardano merged with Ethereum, converting the blockchain into a proof of stake mechanism.
Compared to other systems, proof of stake has continued to rise in popularity because investors can hold or lock their coins within the blockchain. Also known as staking, this system is far more environmentally friendly than the previous proof-of-work system.
Moreover, to make matters more exciting around Cardano, there are plans to launch its stablecoin called Djed. This stablecoin is expected to boost the use cases of Cardano and its decentralization aspirations in the future.
There are also talks regarding Cardano being used across financial services, where it can improve the way businesses capture clients. Additionally, supply chain companies can track their cargo using the mechanism behind the Cardano blockchain.
Future Growth Prospects of Cardano
Cardano falls under the category of Layer 1 applications making it quite similar to Ethereum. However, scalability has always been an inherent problem regarding such a grouping of coins. That is why Cardano underwent an upgrade called Vasil hard fork to address its scalability issues. This upgrade will allow more decentralization projects to be developed under Cardano while improving its scalability compared to Ethereum.
Cardano has even forged long-term partnerships with many universities and governments globally. For instance, one of its most notable partnerships recently has been with Africa. Charles Hoskinson believes Cardano can solve many issues across the continent where a vast population is unaware of its potentiality.
Even though so many things have been planned across the blockchain network of Cardano, one of its most popular additions has been the feature of smart contracts. However, many problems have been faced recently regarding its ability to function correctly that might have caused such a downturn in its fortune. But the effort to improve its performance has caught investors’ eye.
Conclusion
Investors seeking long-term growth opportunities rather than short-term profits should consider Cardano, even in 2023. If all of its upgradation, plans, regulations, and partnerships come through, then nobody can stop it from achieving its goal.
