Is It Worth It to Buy Cardano (ADA) In 2023?

Marcel Deer
By Marcel Deer
Korana Braun - Editor for DeFipedia
Edited by Korana Braun

Updated November 25, 2022.

Shiny Cardano ADA golden coin on a black background

Some call Cardano the "Ethereum-killer" because it is one of Ethereum's most visible competitors in the cryptocurrency market. It distinguishes itself as being highly decentralized and scalable, with low transaction fees.

Bitcoin and other cryptocurrencies currently can't scale well, but Cardano can already process more transactions than Bitcoin. However, it still has some technical issues that will take significant time and technological development to address before it can become a major player in the market.

In addition, Cardano lacks the widespread adoption and media attention of other cryptocurrencies, such as Bitcoin and Ethereum. Briefly put, Cardano is a popular cryptocurrency, and it has a lot of potential.

Cardano (ADA) Overview

Cardano is a blockchain platform created by Ethereum co-founder Charles Hoskinson in 2015 and officially released to the market in 2017. Its purpose was to provide developers with a premier destination for creating smart contracts and decentralized applications.

One of Cardano's key innovations is its consensus protocol called Ouroboros. This proof-of-stake algorithm aims to provide better efficiency and security than other blockchains. Among Cardano's strengths is its ability to scale without compromising decentralization, which lies at the heart of the cryptocurrency movement.

» Which is better? Proof of work vs. proof of stake

Buy or Sell? Cardano (ADA) Price Prediction for the Next Year

Early investors in Cardano (circa 2017 to 2018) would have paid as low as $0.04 and $1.18 per coin. And while Cardano may have been highly volatile since its launch, there have been many times when it gave massive returns to those who invested early on.

Also, despite the price volatility, Cardano has progressed technically and improved its operations. In 2021, for example, Cardano introduced smart contracts, leading to an increase in adoption.

It has, however, taken a hit recently amid rising interest rates, economic unrest, and widespread global inflation. But this is to be expected as other financial markets are also experiencing similar problems.

The question, then, is: How is Cardano expected to fare in 2023? In 2022 alone, the coin saw its value decrease by more than 50%. However, analysts remain optimistic about Cardano in the future.

Most predictions suggest that as the broader cryptocurrency market enters a bullish phase in 2023, Cardano will likewise enter the year with steady gains and likely end the year anywhere between $1.50 and $2.

Analysts also project that Cardano could trade up to $10 by the end of 2025, provided the demand for it continues to grow. As for buying or selling, it largely depends on one's risk tolerance and investment goals.

If you're looking to invest in Cardano long-term, now may be a good time to buy, as prices are relatively low. However, if you're looking for short-term returns, waiting for a market recovery before reinvesting would make more sense.

What Affects ADA Price Increase?

Despite the price predictions released by analysts, it's important to note that such prices remain speculative. In general, many factors may affect the value of Cardano in 2023. These include:

  • Strong market sentiment
  • Renewed interest in ADA
  • Widespread market recovery
  • Mainstream adoption of cryptocurrencies and blockchain technologies
  • Any regulatory developments related to cryptocurrency or blockchain technology
  • Technological improvements and innovations to the ADA platform itself

Is Cardano (ADA) a Good Investment, According to Experts?

Thanks to its strong fundamentals and overall usability, Cardano is a project with great potential in the blockchain space. And given that the crypto market is poised to enter a new bullish phase in 2023, now may be a good time to invest in ADA.

Investing in Cardano is a wise decision if you are bullish about the crypto and blockchain markets in general. If you already own Ethereum, then investing in Cardano will create a hedge that will more likely than not result in net gains.

That said, it's important to remember that cryptocurrencies are speculative instruments and should only be used as part of a well-diversified portfolio. Also, despite what some claim, experts are still skeptical about the whole "Ethereum killer" concept — and this could also apply to Cardano.

While Cardano may become a key player in the blockchain world, it is unlikely to surpass Ethereum. Not very soon, at least.

Key Takeaways

To help you better understand Cardano's price movements, let's take a look at its price history over the years:

  • Cardano entered the market in October 2017 at $0.025
  • On December 2017, Cardano made a new high of $1.18
  • On December 2018, Cardano dropped to $0.04 following the crypto bear market
  • Cardano reached an all-time high of $2.96 in September 2021
  • With markets crashing globally, Cardano dropped to $0.31 in November 2022

Final Words

Cardano's price has experienced some ups and downs over the years. However, analysts remain optimistic about its long-term prospects as markets recover and more people adopt cryptocurrencies and blockchain technologies.

Whether you're looking to invest in ADA for the short or long term, it's important to do your due diligence and consider all the risks that come with investing in cryptocurrencies.

But if you’re willing to take on some risk and stay up-to-date on the latest market trends, Cardano remains a good investment option, especially for those looking for potential returns in 2023 and beyond.