Cardano (ADA) Price Today • Live Data • Benzinga

Cardano (ADA) (CRYPTO: ADA) recently became the biggest proof-of-stake network on the market, which has been great news for its native token ADA. Released in 2017 by Charles Hoskinson, a co-founder of Ethereum (ETH) (CRYPTO: ETH), Cardano came out strong, reaching a market cap of $26 billion within its 1st year. The project quickly gained funding because of Hoskinson’s fame and the bold claims that Cardano will revolutionize blockchain technology. 

Currently, Cardano is the 5th-largest cryptocurrency with a market cap of around billion; it peaked at a market cap of billion in May 2021. This project has experienced both bull and bear markets after heightened concerns regarding problems with scalability and sustainability of Bitcoin and other proof-of-work networks. Cardano’s functioning proof-of-stake network caught a wave of new buyers as other networks struggled to make the switch or became less competitive from high network fees. Buyer excitement shot the price up more than 500% in 2 months, which was a big step for the relatively new and still improving Cardano network.

What is Cardano (ADA)?

Cardano aims to overcome existing problems plaguing the crypto market and distinguish itself as the leader of the 3rd generation of cryptocurrency. 

The 1st-generation blockchains are projects like Bitcoin, Litecoin and Dogecoin that host simple transactions and currency storage. These blockchains are hard to upgrade, slow to transact and riddled with high transaction fees because of the computing power required to verify transactions. 

2nd-generation blockchains like Ethereum 1.0 act as platforms to host smart contracts that facilitate procedural transitions. This practice allows blockchain technology to be used for a variety of transitions like non-fungible tokens (NFTs) and stablecoins. However, because it is still a proof-of-work blockchain, it runs into issues with scalability and high fees like 1st-generation blockchains.

Cardano is considered the 3rd generation of cryptocurrency. It is a platform that hosts smart contracts as in the 2nd generation but is verified on a proof-of-stake network that offers interoperability with other blockchains.

Cardano’s proof-of-stake network solves the scalability and sustainability problems that the current crypto market will face as it grows. It can process thousands of transactions per second and is working on a compression process to scale to millions of transactions per second. This kind of efficiency allows for fast transactions with extremely low fees.

On top of it’s powerful network, Cardano is due to release a network upgrade to enable interoperability with the Nervos Network (CKB), which is an entirely different blockchain. This bridge between two separate blockchains marks a monumental step for Cardano and the blockchain community. 

The crypto market is becoming a diverse ecosystem with many different types of coins that do different things, each with its pros and cons. Odds are in the future an array of blockchains willserve different niches in the market. Without a bridge system, the use for these blockchains will be trapped forever within their chains.

How to Stake Cardano for Interest

Staking Cardano on your own is extremely time-consuming and requires a lot of technical knowledge, which is why the most common way to stake your ADA is through a 3rd-party staking pool.

To get started, you’ll need to open an account with a platform that hosts staking pools. Staking with eToro is an easy and secure way to ensure that your staked ADA is properly managed. Its certified nodes are maintained every second, so you never have to worry about fraudulent node fines.

To create an account, you’ll enter your email and find the “Verify My Account” email in your inbox. Then you need to complete your profile by submitting personal information like your name, date of birth, nationality and phone number to verify your identity.

When your account is set up, you’ll be ready to onboard funds. To do this, click on “Deposit Funds,” enter the amount you want to turn into ADA and select your preferred deposit method. Keep in mind that you need to have more than $25 in ADA to earn staking rewards.

After your account is funded with your U.S. currency, you can go to the ADA price page and press “Open Trade.” eToro will stake your cryptocurrency automatically so no other action is required. After the position is held for 9 days, you start to earn interest on your Cardano.

Cardano vs Ethereum

Cardano has been compared to Ethereum since its release. Charles Hoskinson co-founded Ethereum but split up with the team after saying he wanted to turn the Ethereum nonprofit into a company to accept venture capital. He started the company IOHK after he left to build Cardano to solve the issues he saw with Ethereum’s network.

The biggest issue Cardano tackles is avoiding poorly coded smart contracts. Cardano hosts a selective community of projects that are verified through an academic peer-review process and developed through evidence-based methods. The Cardano network prioritizes hosting only academically trusted projects in hopes of ensuring security and sustainability within its community. 

Critics consider the Cardano ecosystem as its weakest link. In comparison with Ethereum, Cardano offers little infrastructure and far fewer network users. Ethereum plans to scale to proof-of-stake soon and already has more than 10 times the validators than Cardano on its testnet. Developers might not find the specialties of Cardano useful once the ethereum 2.0 network is released.

Advantages of Cardano’s Blockchain

Charles Hoskinson’s bold vision for Cardano’s protocol has distinguished itself as one of the most robust and forward-thinking blockchains on the market. Its critical adjustments to vulnerabilities seen within the current market, like those that allowed hacks on Ethereum, hope to create a viable platform for widespread financial adoption. The following advantages of Cardano’s blockchain are what will cement its place in the crypto market.

  • Peer-reviewed and evidence-based projects ensure sustainable platform growth. Hopefully, verification will produce a trustworthy community of projects so its users never have to worry about technical problems like hackers or malicious smart contracts.
  • Interoperability and chain bridging allow Cardano to become a mediator between other blockchains, intertwining the price of ADA with the larger crypto market.
  • Cardano’s proof of stake blockchain is already a proven success, and its caucus approach to changes provide holders a reliable network.
  • Cardano’s strong relationship with academic and commercial institutions might secure a role within those institutions in the future.

Disadvantages of Cardano’s Blockchain

Cardano’s blockchain is still in the early stages of building and iterating many of its core functions. The next steps for Cardano will make or break its success.

  • If a peer-reviewed project does get hacked, Cardano will lose its main source of credibility.
  • Required peer-review validation is similar to censorship and could unknowingly turn down a revolutionary project because of its abnormalities.
  • Cardano does not host nearly as many projects as Ethereum.
  • Cardano’s proof-of-stake network doesn’t incorporate pruning and compression yet.
  • Cardano’s blockchain bridging functionality is still in its production stages.

Best Cryptocurrency Exchanges for Cardano 

Exchanges are a great way to trade crypto hassle free. Because ADA is a popular coin, it’s a very accessible coin on most exchanges. The most common exchanges are Coinbase and eToro. As previously mentioned, eToro will automatically stake your coins. This way, you’ll earn interest with a minimum of $25 in ADA.

1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For

  • U.S.-based cryptocurrency traders
  • Social and copy traders
  • Simple user interface
  • Community engagement and following other traders
Pros

  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons

  • U.S. traders can only buy cryptocurrency
  • Only 15 cryptocurrency pairs available

1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons

  • Higher fees than competitors