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Coinbase has just made a game-changing move! Continue reading to see how important this is for Cardano and how it will affect ADA pricing in 2022.
In 2021, the ADA's value has skyrocketed. Despite recent market volatility, Cardano's value has been climbing, and it has become one of the best-performing cryptos in 2021.
Due to its high technological skill, it is a game-changer in the crypto business. Even VISA Mastercard can't keep up with Cardano's transaction volume, as it can handle thousands of transactions every second. Coinbase will devote a large chunk of its platform to Cardano and other digital assets, according to Brian Armstrong's announcement.
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Coinbase's founder and CEO, Brian Armstrong, recently tweeted, "We have gained board approval to expand to our existing crypto holdings by purchasing over $500 million in cryptocurrency on our balance sheet. We'll also be putting 10% of all profits into cryptocurrency in the future. As the crypto economy grows, I expect this number to continue to rise."
According to the company, it intends to keep these digital assets for the long term and will only sell them when certain conditions are met, such as when a digital asset is delisted from the Coinbase platform.
Coinbase's recent investment in cryptocurrencies
Coinbase's recent investment joins a growing list of large corporations that have made bitcoin investments. Tesla and Square, a digital payments startup, are two companies that have recently made significant investments in Bitcoin.
While Coinbase's CEO is enthusiastic about bitcoin's future, he has some reservations about alternative blockchains. "We now live in a world where the crypto economy consists of a number of assets and blockchains that serve multiple functions, such as gold, payments, security contracts, and derivatives," Armstrong says.
As a result, items will continue to arrive in greater numbers. In addition, based on overall project management and new improvements, the coinbase platform has included eight more cryptocurrencies this year.
Coinbase & Cardano
The launch of Cardano tokens to Coinbase is a huge step forward for ADA in encouraging Cardano holders and new investors to buy and hold additional Cardano coins. As the network's on-chain activity grows, Cardano has experienced a boom in popularity.
The price of Cardano is anticipated to climb, with analysts expecting a $2.50 objective for the altcoin. As adoption climbs, Cardano is poised for a bull run. Cardano CEO Charles Hoskinson believes that blockchain-based projects like the Ethereum killer ADA would one day be "as prevalent as the internet and used by billions." Cardano, according to Hoskinson, will be adopted.
Despite minor changes in the ecosystem, Cardano's founder believes the blockchain is progressing toward widespread use. The Cardano ecosystem, according to Hoskinson, has less hype and more updates.
In a recent blog post, Hoskinson stated, "These protocols, in our opinion, will become as common as the internet... This adoption will take years to decades rather than weeks or months, and it will not be a meme." Cardano's price trajectory has been examined by @Ezy Bitcoin, a fictitious cryptocurrency analyst, and another leg down has been identified.
Cardano Future Price Prediction
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According to the analyst, Cardano's price trend is forming a head-and-shoulders pattern, which is positive for the altcoin. Despite the fact that holders have received negative three-month returns, the Cardano price appears to be rising.
According to cryptocurrency experts at the YouTube channel Crypto Krystian, Cardano's price is predicted to grow. Analysts believe Cardano has broken out to a crucial price level of $1.33. According to Crypto Krystian analysts, Cardano is anticipated to climb.
Cardano recently broke out above the bear-market angle on its $0.02/3-box reversal Point and Figure chart. As a result of this move, Cardano has entered a bull market. Although many traders are still waiting for confirmation, the Cardano price is now in the hands of the bulls.
Cardano price action has progressed to the point that traders who utilize a price action chart instead of a time-based chart such as Japanese candlesticks can gain a significant advantage. Cardano, for example, has recently broken through the old bear market trend line on the $0.02/3-box reversal Point and Figure chart to become a bull market (red diagonal line).
Traders who exclusively use Japanese candlestick charts are more likely to enter long trades on the Cardano price too early in a swing. In Point and Figure Analysis, a decrease after converting from a bull to a bear market or vice versa is typical.
Given the likelihood of a retreat, a potential trade arrangement may now be implemented. The potential long trade for Cardano price is a buy limit order between $1.32 and $1.26, with a stop loss at $1.18 and a profit goal of $2.00. This trade provides a reward-to-risk ratio of 4.86:1 to 9.25:1 depending on the entry.
After you enter the market, a three-box trailing stop would safeguard you from any inferred profit. The contract is canceled if Cardano closes at or below the $1.18 value zone. In such a situation, the $1.00 level is in jeopardy of collapsing. In such a situation, Cardano maybe drops as low as $0.40.
Developments in the Cardano ecosystem
There have been numerous interesting developments in the Cardano ecosystem recently. The Cardano Foundation is working with Eco-Age, the organization that organizes the Renaissance Awards. These awards are also designed to recognize young activists who fight to improve "social and environmental" conditions.
Eco-Age will replace conventional tangible prizes with non-fungible tokens (NFTs) and will do so with Cardano. In addition, the Cardano blockchain was utilized to generate 13 distinct digital artworks at the awards event in October. These digital pieces of art paid homage to some of the most well-known Renaissance painters.
The recipients of these prizes will also benefit in the long run. If the prize is sold, the winner will get 100% of the revenues as well as 50% of future NFT sales royalties. Cardano's native token ($ADA) has been added to the list of supported cryptocurrencies by Flexa, a digital payments platform. This transfer is part of the "25 Days of Flexa" campaign, which covers Filecoin and Solana currencies as well.
Additionally, as a result of this acceptance, the $ADA token is now accepted at over 40,000 locations across the United States. Following a prior deal between Flexa and Regal, a U.S. theater operator, $ADA users will be able to use the token to pay for movies.
Cardano is clearly riskier than other cryptocurrencies, which says a lot. On the other hand, its academically oriented development staff is following a sound expansion plan. In a few years, if Cardano lives up to its promise of huge scalability, the platform might be quite popular among dApp developers and DeFi investors.
On that topic, as more people use Cardano blockchain services, transaction costs will rise, increasing demand for the underlying ADA currency. As a result, its value is expected to grow over time. Similarly, owning ADA tokens permits you to engage as a shareholder in the network.
You may either create your own stake pool to help with transaction verification and blockchain security or just lend your tokens to an existing stake pool to enjoy the benefits in either scenario.
Bottomline
Of course, all of this is dependent on Cardano achieving the needed scalability and acceptance by both dApp developers and customers. We don't think it's a leap to see Cardano as a viable ecosystem in a few years, with 4,000 projects already under development. As a result, it looks that this currency is a good long-term investment.
Disclaimer: This article's information is provided solely for educational purposes and should not be construed as financial advice. We all know that the cryptocurrency market is extremely volatile, and by the time you read this post, the prices will have shifted to completely another level, therefore any financial decisions should be taken after conducting extensive research.