Forbes UK editors Mark Hooson and Laura Howard have provided their insights on the projected price of Cardano (ADA) in 2024. In their evaluation, the Forbes advisors acknowledged Cardano’s initial potential in addressing the limitations of Ethereum. However, they argued that with the emergence of Ethereum layer two blockchain solutions, Cardano’s unique features no longer hold the same influence in driving adoption.
The publication also highlighted Cardano’s current underperformance, noting that the asset has experienced an 85% drop from its peak of $3.10 in 2021.
To assess its potential for this year, the analysis examined various market forces affecting ADA, including demand, supply, market sentiment, and competition.
Supply and demand were significant factors considered by the Forbes advisors. They pointed out that over 35.25 billion ADA tokens are currently in circulation, which accounts for 78% of Cardano’s maximum supply of 45 billion. Based on these figures, they emphasized that ADA still has significant room for growth.
Additionally, due to Cardano’s token issuance mechanism, it is projected to take over 100 years for the entire 45 billion ADA tokens to enter circulation. This suggests that there will be no significant pressure on the supply side that could impact ADA’s price.
In terms of demand, the analysis highlighted that the level of transactions on the Cardano network correlates with its demand. Data from the intelligence platform IntoTheBlock revealed that the current one-week average daily transaction count stands at 57,000. However, the Forbes advisors noted that this figure has remained relatively stable over the past few years, indicating a lack of significant demand for ADA.
Furthermore, the analysis examined Google Trends search data, which showed a decline in search volume for Cardano after a surge in early March. Forbes also noted that interest in Cardano has generally remained flat since 2022.
The number of active ADA addresses was also scrutinized in the analysis. According to the latest data from the analytics platform Messari, there are currently 40,629 active ADA addresses, representing a nearly 50% decrease from the count recorded one year ago. While the Forbes advisors cautioned against viewing this data as a conclusive indicator of interest in purchasing ADA, they suggested that collectively, these factors could indicate a lack of significant pressure on the demand side, potentially resulting in relatively stable prices.
Regarding market sentiment, Forbes observed a notable pessimism within the community regarding Cardano’s prospects. This sentiment has become so pronounced that Cardano’s founder, Charles Hoskinson, recently defended the project in a post on X.
In terms of market competition, Forbes highlighted ongoing debates within the industry about Cardano’s long-term potential. Some proponents argue that Cardano presents a more viable alternative to Solana (SOL), citing similarities and a superior track record on network uptime.
Looking ahead to 2024, the Forbes editors concluded that current market conditions do not suggest a bullish trend for Cardano in the near future. However, they also noted that there is no indication of an imminent decline. They added that Cardano may continue to follow the current momentum in the crypto market, which is influenced by Bitcoin.
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