Will Cardano Make it to the Third Position Again in 2022?

Cardano lost its third position in September to Tether, despite unleashing smart contract and DApp features

In August 2021, Cardano’s ADA token skyrocketed by 150% and became the third-largest cryptocurrency by market capitalization. Unfortunately, the digital token couldn’t keep the crown for a longer time. Towards September, ADA lost its position to Tether and Binance Coin. Since then, Cardano’s price has been on a downward trend. Although ADA has positioned itself as a major ‘Ethereum Killer’, the value seems to be gloomy. Therefore, we explore Cardano’s possibility to get back its third position in 2022.

Cardano began 2021 on a positive note. But towards the end of the year, it got tumbled upon major distractions that eventually affected its price. In the first nine months of the past year, the growth took Cardano’s price up by 1,400% only to push it down by 60% in the end. At the time of writing, ADA is being traded for US$1.33 with a market capitalization of US$44.58 billion. Currently, Cardano is occupying the sixth position in the cryptocurrency market. With decentralized applications and smart contracts on board, ADA might encounter a possible spike in 2022, which will help the digital token retain its third position and reach a new all-time high.

 

Cardano’s Journey Towards the Third Position

Cardano started 2021 as an unfamiliar cryptocurrency that has entered mainstream investment pretty recently. Fortunately, its growth rate and increasing adoption helped the digital token make it to the third position. Its market boost added more value to ADA’s market capitalization. When the cryptocurrency was at the top three, its market capitalization was at US$82 billion. Enthusiasts thought that Cardano might outperform Ethereum with its amazing features. Although it felt possible at the time, ADA been facing harsh wind since it slipped from its stand. Despite announcing new smart contract functionalities and decentralized applications in the Cardano network, the price didn’t rebound to its previous high.

Besides, the fall came at a time when investors thought Cardano will hit US$100 billion in September. Although it went up to US$98.91 billion, ADA couldn’t keep its position. However, the digital token tried its best to hold on to its upward trend. Over the next few months, Cardano announced a slew of new partnerships, the unveiling of new stablecoin, a new DApp store, and more funding. Unfortunately, these moves couldn’t save ADA from the fall.

 

Why is the Third Position Very Important?

For a very long time, Bitcoin and Etheruem have occupied the first two positions in the cryptocurrency market. The digital tokens taking up the third position in the crypto sphere are characterized as a challenger to the two incumbents. Besides, it will see massive adoption from investors and become a major choice for first-timers.

So far, Ripple, Cardano, and Binance Coin have occupied the third position. For new investors, the third coin seems to be a major problem solver. They don’t look at history and timeline, rather bluntly think that the third cryptocurrency in the market can both be profitable and address all its incumbents’ problems. For example, when Ripple was at the top, before the SEC vs XRP court battle began, the cryptocurrency was hailed for its potential and link to central financial institutions.

Similarly, when ADA took over the third position, it emerged as a major ‘Ethereum Killer’. The investors also defended the digital token over its lack of core functionality in its smart contract facility.

 

Cardano in 2022

Toward the end of 2021, Cardano’s price indicated a neutral signal. According to predictions, ADA will reach US$1.5 in early 2022, which will eventually drive the price to US$3.34 by the end of the year. The anticipations also suggest that Cardano will reach US$10.5 in 2026.

Although it is not clear whether Cardano could make it to the third position yet again, it has the potential to do so. Even without retaining its previous record, ADA can perform well in the market and grow its market capitalization.

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