Cryptocurrency (illustrative)
Cryptocurrency (illustrative) iStock

Cardano has exploded into recognition and its popularity keeps growing. Indeed, it has soared by over 1,100% this year. This cryptocurrency has exceeded high-ranking cryptocurrencies, including Ethereum and Bitcoin. The former climbed by 559%, while the latter increased by 130%. Cardano has now established itself as the fourth-largest cryptocurrency by market capitalization, which is over $75 billion.

It is worth pointing out that this cryptocurrency has declined from this year's high. However, that does not mean the gains and development are over. After all, Cardano is just at the beginning of its growth story. With an increase in momentum, it will grow bigger in market value.

Let us take a look at Ethereum, whose market value is in excess of $500 billion. This seems virtually out of reach for new cryptocurrencies like Cardano. However, this may not be the case. To attain this level, Cardano need not gain as much as it had this year. Will this happen in 2022? Let's dive in further!

There are a limited number of coins available

Cardano is used by several investors as they buy the coins as investments and use them during transactions. Currently, Cardano boasts over 33 billion coins in circulation. However, there is a cap that is set: 45 billion. The idea of a limited number of coins in circulation could be the drive behind the stunning gains in Cardano.

However, it must be noted that Cardano is more than just a coin. Similar to Ethereum, Cardano is a blockchain-powered platform that encourages the implementation of smart contracts. Simply speaking, these are self-executing contracts that have terms that are written into the code. A significant area where Cardano is important is in the financial world. Away from this, trading with the right app, including BitQT, contributes significantly to the overall user experience.

In addition, Cardano's decentralized system ensures that it can facilitate banking and other financial services across the globe. For instance, it is possible for users to store documents on the blockchain and this could be employed to open a bank account. Besides this, Cardano can also be used in other fields when users wish to store personal information and then make it available for another person or group of people.

What makes this cryptocurrency especially alluring is its transaction speed. Apart from this, it is also eco-friendly. In terms of the former, Cardano can process approximately 250 per second. This is faster than Ethereum's 30 per second. Also, it is possible for Cardano to please investors since it requires less energy than many other top-ranking cryptocurrencies. It must be noted that the effect of investors in a new market can contribute to the increase in its value. Moreover, most of Cardano's energy use is renewable.

Of course, these are all great potentials in the crypto network. However, why is Cardano thought of to be in its early days of growth? This is simply because this dynamic cryptocurrency has mapped out five developmental phases. Yet, work is not over in these areas. The aim is to ensure that the system is self-sustaining. This will definitely not happen at once. This implies that even though Cardano's market value will not surpass other higher cryptocurrencies - including Bitcoin - at once, it will not stagnate either.

Conclusion

Some have predicted that Cardano will reach $500 billion in market capitalization as early as 2023. This means that it must gain 563% to $15. That seems like a significant leap. However, we all know that it increased by more than that this year. If this digital currency can attain progress in these five phases of development, a meteoric rise sooner rather than later is not beyond the realm of possibility. Will it really be a worthy investment by 2022? Only time knows!

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