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Will Cardano Make it to the Third Position Again in 2022?

Will Cardano Make it to the Third Position Again in 2022?
Written by publisher team

Cardano lost third place in September to Tether, despite launching smart contract and DApp features

In August 2021, Cardano’s ADA token rose 150% and became the third largest cryptocurrency by market capitalization. Unfortunately, the digital code could not hold the crown for much longer. In September, the ADA lost its position to Tether and Binance. Since then, the price of Cardano has been in a downtrend. Although ADA has positioned itself as a major “Ethereum killer,” the value appears bleak. Therefore, we are exploring the possibility of Cardano reclaiming its third position in 2022.

Cardano has started 2021 on a positive note. But by the end of the year, it faltered due to significant distractions that eventually affected its price. In the first nine months of last year, growth only raised Cardano’s price by 1,400% to eventually bring it down 60%. At the time of writing, ADA is trading at $1.33 with a market capitalization of $44.58 billion. Currently, Cardano occupies the sixth position in the cryptocurrency market. With decentralized applications and smart contracts on board, ADA may face a potential spike in 2022, which will help the digital token retain its third position and reach a new all-time high.

Cardano’s journey to third place

Cardano started 2021 as an uncommon cryptocurrency that has recently entered mainstream investing. Fortunately, the growth rate and the increasing adoption of the digital token helped it reach the third position. The market increase added more value to the market capitalization of ADA. When the cryptocurrency was in the top three, it had a market capitalization of $82 billion. Enthusiasts believe that Cardano may outperform Ethereum with its amazing features. Although this was possible at the time, ADA has been facing rough winds since it slipped from its stand. Despite the announcement of new smart contract and decentralized application functionality in the Cardano network, the price did not rebound to its previous high.

Besides, the drop came at a time when investors believed Cardano would reach $100 billion in September. Despite rising to $98.91 billion, ADA could not maintain its position. However, the digital token has done its best to maintain its upward trend. Over the next few months, Cardano announced a slew of new partnerships, unveiling a new stablecoin, a new DApp store, and more funding. Unfortunately, these moves were unable to save the ADA from falling.

Why is third place so important?

For a very long time, Bitcoin and Etheruem held the top two positions in the cryptocurrency market. Digital tokens, which occupy third place in the crypto space, are touted as a competition for the two positions. Besides, it will witness huge adoption by investors and will become a major choice for the first time.

So far, Ripple, Cardano, and Binance Coin are in third place. For new investors, the third coin appears to be solving major problems. They do not look at history and timeline, but rather frankly believe that the third cryptocurrency in the market can be profitable and solve all the problems of existing companies. For example, when Ripple was at the top, before the start of the SEC vs XRP court battle, the cryptocurrency was welcomed for its potential and linked to central financial institutions.

Similarly, when ADA took third place, it emerged as a major “Ethereum Killer.” Investors have also defended the digital token due to its lack of basic functionality in its smart contract facility.

Cardano in 2022

Towards the end of 2021, Cardano’s price signaled a neutral signal. According to forecasts, the ADA will reach 1.5 USD in early 2022, which will eventually raise the price to 3.34 USD by the end of the year. Projections also indicate that Cardano will reach $10.5 in 2026.

Although it is not clear if Cardano can reach third place again, it is likely that he will. Even without keeping its previous track record, ADA can perform well in the market and increase its market value.

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