Why is Cardano a great investment both for the present and the future?
Cardano (ADA) is an interesting crypto project that has managed to stand out from the rest by offering improved solutions, especially since its launch on the market following extensive research. 2025 proved to be a great year for Cardano, which increased the chances that this can occur in the future as well. By examining the ADA price prediction, we can see a growth in prices, indicating that demand for Cardano’s native token, ADA, is expected to increase.
Cardano is an interesting crypto project that made its first steps back in 2017, following academic research. This is why Cardano managed to solve some of the security and scalability issues present in other blockchains.
In this article, we will explore the most important milestones that Cardano has had so far, and why it is a great investment both for the present and the future.
Cardano’s eras
Cardano is a project that has gone through five important phases, which were meant to help this project thrive and improve many parts of its operations. Here are all the eras of Cardano:
- Byron Era: The Byron Era is the initial phase, centered on building the Cardano blockchain and creating the necessary landscape for the ADA coin to thrive.
- Shelley Era: The Shelley Era was closely tied to decentralization and establishing a consensus algorithm that would enable the platform to thrive. Cardano works with a Proof-of-Stake (PoS) consensus mechanism, where users stake their coins to enable the Cardano blockchain to function properly.
- Goguen Era: The Goguen phase introduced smart contracts, and in this way, it helped developers build decentralized applications on the Cardano blockchain.
- Basho Era: The Basho phase focused on scalability and finding solutions to make Cardano energy-friendly, enabling its adoption on a larger scale.
Voltaire Era: The Voltaire era introduced decentralized governance, allowing ADA holders to vote on protocol upgrades and changes, thereby enhancing the platform’s flexibility.
Why is Cardano a great investment option?
Cardano is a great investment option, boasting many strengths that set it apart from other players in the crypto market. Here are some of them.
- Energy efficiency: Cardano is a highly energy-efficient digital coin because it employs a Proof-of-Stake (PoS) consensus mechanism. In comparison, Bitcoin functions with a Proof-of-Work (PoW) consensus mechanism, where users need to solve challenging mathematical problems to add new blocks and validate transactions. However, this process has garnered significant criticism for its high electrical consumption. This is why Cardano sought ways to offer an eco-friendly option for users validating new transactions on the network.
- Academic research: One of the key reasons Cardano stands out from the rest is that its development has benefited from academic research, ensuring the platform has everything it needs to thrive. Before its launch, Cardano’s creation involved many experts from the field to address the shortcomings associated with other cryptocurrencies. This is why Cardano has seen a surge in popularity, soon after being launched on the market.
- Several partnerships: Over the years, Cardano has also benefited from several partnerships that have made it different from the rest. These partnerships were between Cardano and important governments or businesses. For example, Cardano has partnered with the Ethiopian government to leverage blockchain technology and address many of the challenges in the education system. These partnerships offer mutual benefits, enhancing the reputation of both parties.
- Great leadership: Cardano was created with the help of Charles Hoskinson, who is one of the co-founders of Ethereum. He saw the shortcomings of that project, which made him want to develop his own project. And he did that after seeking the help of important academic people. This creator also played a significant role in the popularity that Cardano is known for.
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What are the downsides of Cardano?
Cardano also has some disadvantages that should be considered in advance to reduce the chances of risks. One of them is the slow development. As Cardano is undergoing an academic approach, it actually needs to spend more time researching the upgrades rather than launching them immediately. Before going live, the Cardano team needs to test them to ensure they align with Cardano’s values.
Another disadvantage of Cardano is that it operates in a competitive landscape, where other digital coins and blockchains like Solana, Ethereum, or the Binance Smart Chain surround this digital coin. Since the others were launched before, they might have a larger user base, making it more challenging for Cardano to enter the market.
Cryptocurrencies are also subject to regulatory uncertainty, and the stance on crypto varies from one country to another. This is why some fear what the future might bring to the general crypto landscape, which makes them more reluctant to invest in it.
So, should you invest in Cardano?
As mentioned above, Cardano boasts a long list of advantages that people can leverage, making it stand out from the rest. But Cardano is still a crypto project, which means it has the same risks as the other digital coins. Some of them include high volatility, which must be considered before investing to increase the chances of having a great future with this coin.
However, those who have a good tolerance for volatility can actually try their hand with Cardano. Cardano is suitable for those who seek efficient solutions and are looking to improve sustainability. This is why, despite some blockchains being developed in advance, Cardano has still managed to regain popularity very quickly.
Those who consider Cardano from a long-term perspective can reap many advantages that it offers. This is why Cardano has made many headlines recently, and a lot of investors are willing to invest in it to benefit from portfolio diversification. Maximize your crypto investment journey with strategic business plan help.