- Cardano is facing intense ecosystem criticism for its relatively poor price performance.
- Founder Charles Hoskinson has defended the protocol, citing recent advances that can drive adoption.
The Cardano blockchain has persistently received criticism for the inability of its native token, ADA, to sustain a bullish rally. To allay investors’ concerns, Charles Hoskinson, the founder of the Cardano network, claims ADA’s rally could silence the blockchains’ critics.
His comments have sparked discussions within the crypto community, with analysts speculating on probable catalysts for an ADA price increase.
Cardano Founder Addresses Investors’ Concerns
Charles Hoskinson believes a huge price hike for ADA might alleviate the network’s ongoing issues. Hoskinson’s affirmative response highlights the intricate relationship between token value and project perception in the crypto space.
This means projects with a high token value are usually perceived as sound. This viewpoint calls into question how market performance is used to validate blockchain projects and the technologies that underpin them.
In recent times, the Cardano network has faced intense criticism, with some calling it “dead” or a “low integrity shitcoin.” These criticisms mostly stemmed from ADA’s poor price performance, as the token has struggled to break the $1 barrier since April 2022. As reported by CNF, ADA’s closest approach to this psychological barrier in over two years came in March. At the time, the token briefly surged above $0.8.
ADA’s price has since dropped, consolidating within the $0.36 level. As of this writing, ADA surged 2.09% in the 24 hours to $0.3607. The trading volume also climbed 18.6% to $266.6 million. As CNF mentioned, ADA is positioned above the Ichimoku Cloud, indicating bullish momentum.
Another indicator supporting the ongoing bullish trend is Cardano’s price Balance of Power (BoP). At 0.44, Cardano’s BoP indicates buyers dominate the market as they attempt to drive the ADA price higher.
Catalysts for ADA’s Price Surge
Market analysts speculate on potential catalysts for an ADA price surge amid the ongoing debate. One notable price forecast came from Dan Gambardello. The analyst claims ADA will hit $0.5 by the end of October. This bold forecast would entail a 29% increase in ADA’s price from the current levels.
In a bolder forecast, analysts claimed ADA could reach $5 if Bitcoin breaks above $100,000. Meanwhile, Hoskinson has consistently defended Cardano’s progress and potential despite the prevailing skepticism. He highlighted the network’s ongoing development, particularly the Voltaire era’s new governance structure, as a major catalyst to fuel adoption and growth.
Hoskinson added that many criticisms against Cardano arise from untested roadmaps and unsupported expansion ambitions. However, he believes the new governance model would resolve these issues. As CNF reported, Cardano has entered the final decentralization era with the launch of its Chang Hard Fork upgrade. This upgrade makes Cardano a self-sustaining network by introducing the voting and treasury systems.
