- The growth in Cardano (ADA) wallets is a positive indicator for the project despite macro trends.
- Likewise, NFT sales look like a positive sign for Cardano.
- Price predictions look favorable in the altcoin’s recovery.
Source: Stanslavs / Shutterstock
Cardano (ADA-USD) has suffered in 2022 and more recently in the crypto crash. That could reasonably lead investors to flee. But that looks to be a mistake as multiple factors suggest the future will be better for ADA.
Wallet Growth as a Barometer
My colleague Mark Hake wrote an article in late April centered on the thesis that Cardano’s rise (or fall) can be measured by the total value locked in the project, or TVL. He also noted that TVL is highly correlated with the growth in ADA wallets.
So, if wallet growth is strong it is suggestive of the idea that Cardano should continue to strengthen over the long term.
Finbold reported that over the 30-day period between April 19 and May 19 an average of 2,340 new Cardano wallets have been created daily. That brings the total number of holders to 3.34 million.
Interestingly, purchases by so-called whales hit a four month high recently. That’s attributable to the price dip but despite the speculative nature of the news, it is bullish.
A recent Tweet from Cardano founder Charles Hoskinson posed an intriguing question: If Cardano did $27 million in NFT sales over the last month then why isn’t it listed on sites where projects are that did less than $10,000 in NFT sales during the same period?
I’m more interested in the $27 million in NFT sales figure than theorizing an answer to his question.
Cardano isn’t listed among the top blockchains by NFT sales volume over the past 24 hours. However, if it continues to account for $27 million in NFT sales, then it should theoretically find itself among the leaders.
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Yes, NFTs are controversial. But Cardano should still control as much of the market as it can.
2022 has been difficult. That statement applies to just about everything, Cardano included. In short, Cardano has trended downward without much resistance. During the process it has slid from $1.33 to 51 cents.
Predicting a bottom is a notoriously difficult thing to do. Cardano may or may not yet have reached that point. However, most predictions indicate that there is plenty of upside.
Gov Capital pegs Cardano prices at $1.96 a year from now. DigitalCoinPrice places the average 2022 price for Cardano at much more modest 67 cent average throughout 2022. Other prognosticators peg Cardano prices somewhere in the middle with an average near $1.50 a year from now.
Bottom Line on Cardano
Cardano is currently weak. Founder Charles Hoskinson even suggested that cryptos may already be in a bear market. But Cardano remains a logical choice among cryptos with its logical development path based on empiricism. Now may be the time to establish or increase any positions.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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