Cardano’s blockchain native token, ADA, is growing quite nicely. It recorded one of the best performances and we expect a higher closing price this year. The ADA launched the year at $ 0.1814. Like many other altcoins, the ADA maintained decent profits during the bull run from late last year to early 2021. The ADA quickly got over $ 1 and kept prices at that level for most of March to July.
Despite the market slump from May to July, the token was quite successful and remained mostly in the green. Its market capitalization increased to $ 82 billion and the ADA became the third largest cryptocurrency.
Can the ADA reach $ 10 this year?
In August, the ADA bulls set the asset up for $ 3 in September, and since then the mood is still bullish, with investors waiting to see $ 10 as the closing price for the year.
Whether the ADA reaches $ 10 cannot be accurately predicted. As with any cryptocurrency price prediction, fundamental and technical indicators are important key factors for market players.
Although on-chain, technical and fundamental metrics are available, the market has almost always taken a different path, as we have seen. This is usually the case when an unexpected event causes a FUD in the market, which ultimately affects investors and institutional sentiment, which ultimately suppresses demand.
However, if we ignore these factors and current market indicators are taken into account separately, then the $ 10 for ADA is not a meaningless price prediction, because market interest shows that demand is extremely high.
Institutional demand could send the ADA to new levels
Institutional investors are the main drivers of ADA adoption. Data from the beginning of this year shows that institutional investors are very interested in this token due to the advantages of its blockchain, which is progressing with the implementation of new functions. The analytical platform IntoTheBlock wrote:
“The recent volume of large CardanoADA transactions in the chain indicates strong upward demand from institutional players. As of August 26, this metric has more than tripled, so if this trend continues, we could see a new ATH that exceeds the $ 3.10 mark we saw a few days ago! “.
The increase in demand was seen with a $ 3 break since the announcement of testnet upgrade Plutus, which introduces compatibility for smart contracts. The views are now fixed on September 12, the date planned for the Alonzo mainnet upgrade, which will be the beginning of the end of the Goguen era.
In the long run, if the ADA maintains its current pace, it is not at all impossible to achieve $ 10 this year.