Does ADA have what it takes to go to the moon? Analyst digs into the Cardano project

• Cardano has a lot of positive metrics and launched projects but does not reflect in its current price.

• According to the analyst, the reason is that ADA is highly correlated with Bitcoin.

Cardano has been one of the most influential crypto projects on the internet with interesting developments. In 2021, it was selected as the most developed crypto project on Github. However, it faced several challenges making Electric Capital ignore it in the top 10 of its developer metric in 2021. Prior to the launch of SundaeSwap, ADA embarked on a 50 percent rally as users were in strong anticipation of the project. However, users reported failing transactions after the launch. 

According to an analyst whose channel is Identified as Coin Bureau, these challenges do not take anything away from Cardano as every single blockchain cannot handle hundreds of thousands of users at the same time. 

At least the blockchain didn’t go down like Solana’s.

How far Cardano has come

Cardano’s project called Hydra is still in development as it has been said to solve most of the pending problems. According to developers, Hydra will make each staking pool process a thousand transactions per second, and with over 3,000 staking pools, it can process over 3 million transactions per second. Also, Cardano’s Project Catalyst launched Fund8 in March. It was also reported that whales are accumulating hundreds of millions of ADA according to on-chain data as they prepare for price pumps in the future.

However, these positive metrics and the launched project do not reflect in its current price. According to the analyst, the reason is that ADA is highly correlated with Bitcoin. Since September last year, Bitcoin has been in a decline, and it was the same period Cardano’s Smart Contract went live. Users expected dozens of DApps to be deployed on the first day. However, that was not the case. It was later understood that Cardano DApps would not be deployed anytime soon, forcing people to sell. 

Metrics do not reflect in the price

Despite its struggling price, the number of unique Cardano wallets has increased by more than 50 percent and the number of Cardano assets has also more than doubled with dozens of DApps deployed and hundreds in development. This means the lock of demand is coming from retail institutional investors.

With this, it can be said that the selling pressure is coming from somewhere. I guess that since IOG, EMURGO, and the Cardano Foundation are working to expand the team and improve on its partnerships, there will be a serious growth in the long term but will also come with selling pressure in the short term.

The roadmap of Cardano is broken down into five and it is currently on the third called Gogen which focuses on a smart contract. Currently, it is left with two which are Basho and Voltaire expected to be completed by the end of the year. It is also working on another scaling solution called Pipelining. According to the analyst, the ADA price is highly undervalued and has a huge potential to rise to the moon.