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Urian B., Tech Times January 23, 2022, 7:01 p.m.
Although Cardano ADA is getting a lot of attention, especially when Vitalik asked the public about their favorite blockchain outside of Ethereum, a lot of buzz suggests that the price could climb to $10.
However, this can be quite difficult as the coin will need to be 450x to reach just $5.
Will ADA ever reach $5?
According to Sham Doran on Twitter, there are people predicting that ADA or Cardano will eventually hit $5. The tweet went on to explain how this can be achieved and why it is rather difficult for it to actually happen.
Doran noted that it looks like the major DeFi chains stabilize when they are around 2-5x market cap versus TVL or “2-5x market cap: TVL.” Examples of these were then provided, which included Ethereum, Binance Smart Chain and Solana
Here are examples of how top DeFi chains are stabilizing at ‘2-5x cap: TVL’
Ethereum – 288:115
BSC – 61:12
GROUND – 30:7
(in billions)
ADA, on the other hand, is still in its DeFi infancy and 450x to (36 billion: 80 million). The account then provides a caveat as this means that for ADA to reach $5, the above range must be 30-80 billion TVL.
People are predicting $ADA to hit $5+… Seems like the major challenge chains are stabilizing around 2-5 times the cap: TVL eg $ETH-288:$115 BSC-61:$12 SOL – 30:7 (billion) $ADA, in its debut, is 450x (36bn:80m), so a word of caution. $5 ADA, in the above range, need 30-80 billion TVL.
— Sham Doran (@shamdoran) January 23, 2022 ADA staking could be considered TVL
Another Twitter account called ADA Whale, however, was quick to respond to this tweet from Sham Doran. ADA Whale explained how saving the coin could be more feasible.
The account noted that it was fair to point out that Cardano is actually a “Bitcoin-like” asset. That means it’s secure, rare, and decentralized, so TVL isn’t actually the whole story.
The account explained that the staked ADA could also be the TVL. The account went on to compare ADA to Doge, which has 18 billion in assets, saying that there is also a whole social aspect when it comes to crypto markets.
Read also: BabyDogeCoin tops Altrank-based BSC projects | PancakeSwap in 2nd and CateCoin in 3rd
ADA comes in fourth place
The tweet followed an older tweet that showed coins’ social transactions against their total market capitalization in a chart. As the tweet shows, BTC remains the highest while Ethereum follows in second place and BNB follows in third place.
In fourth place is ADA and behind, SOL and XRP, followed by other cryptocurrencies. Thankfully, Sham Doran responded by stating that the account was a perfect fit that DeFi wouldn’t necessarily be the whole story.
Sham Doran also acknowledged that staking will also inject its own demand for ADA which is independent of DeFi.
Bad boy update. Social Coin Traction vs Market Cap (Jan 18)
Therefore, in the current total market environment, the fair (social) value of the $ADA hype-free premium is approximately $40 billion, $10 billion SOL, $9 million DOT, $6 million AVAX
Above and below are premium hype and sentiment discount areas pic.twitter.com/kq4ySKJab0
— ADA whale (@cardano_whale) January 18, 2022
Related Article: Fake Elon Musk Account Promotes BabyDogeCoin | Is it really profitable?
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