Cardano (ADA) has been one of the most talked-about cryptocurrencies in recent years. However, this blockchain platform, with a growing user base and a strong development team, has not been immune to the market's turbulence. Despite its promising technology and active community, its price has been in decline, prompting many to ask, "Why isn't Cardano going up?". In this article, we'll explore various factors affecting Cardano's market performance and evaluate the potential for a resurgence in the future. Is Cardano going to go up? Let's find out.

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What is Cardano (ADA)?

The biggest system that needs an update because of globalisation and the Internet is the financial system. – Charles Hoskinson, Founder of Cardano.

Cardano is a blockchain platform based on the Proof-Of-Stake algorithm, designed to create decentralised applications (dApps) based on smart contracts. The platform is meant to offer users more advanced features than any of today's other protocols.

Cardano was founded in 2015 by Charles Hoskinson, one of the co-founders of Ethereum. On 7 February 2017, developers presented the whitepaper of the Ouroboros blockchain protocol, which has become one of the foundational elements of Cardano. The Cardano platform was officially launched on 29 September 2017.

One of the main differences between Cardano and its competitors is the large research community. Solutions to the challenges and problems faced by the project are offered by the authors in peer-reviewed publications.

Cardano runs on the innovative Ouroboros protocol, a Proof-of-Stake blockchain protocol with strict rules regarding security. The developers claim that Ouroboros is the first algorithm with mathematically proven resilience against attacks.

ADA is the platform's native cryptocurrency. ADA's main function is enacting transfers on the Cardano blockchain. ADA is also used to maintain the blockchain through a staking mechanism. Regular holders can delegate their coins to staking pool operators. The delegation mechanism is built into the official Cardano wallets: Daedalus and Yoroi. One of the distinctive features of staking in the Cardano blockchain is a built-in mechanism that prevents the emergence of dominant pools and thus combats network centralisation.

Cardano (ADA) characteristics (as of 02/03/2023)

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Cardano smart contracts

Although Cardano is positioned by its developers as a platform for smart contracts, it initially lacked such functionality. The ability to deploy smart contracts on the Cardano network was added on 12 September 2021 with the Alonzo hardfork.

On 22 September 2022, a major upgrade called Vasil was successfully deployed in the Cardano mainnet. It included the second, higher-performance version of Plutus scripts and a new cost model. This was intended to lower the execution price of smart contracts and enhance their capabilities, as well as improve the speed of the Cardano network.

Will Cardano ever go back up?

Cardano's price is now at levels well below its all-time high. However, the same can be said for the vast majority of other cryptocurrencies.

Why is Cardano (ADA) going up?

In the past, Cardano's price has gone up due to various factors, including positive news and announcements, market sentiment, etc. For example, a significant price increase occurred shortly before the launch of the Alonzo hardfork. Then, in anticipation of this update, the price reached its all-time high of $3.10 on 2 September 2021.

As for market sentiment, it is one of the most important factors impacting the price of all volatile cryptocurrencies, i.e., non-stablecoins.

In addition to positive news and market sentiment, Cardano's future potential as a blockchain platform that prioritises security and sustainability has also contributed to its growth.

Why is Cardano falling?

Despite its promising technology and growing community, Cardano's price has been on a downward trend in recent months. Several factors have contributed to this decline, including:

• Market sentiment. This is a primary driver of price declines. When the cryptocurrency market as a whole is in a bearish phase, it has a huge negative impact on the price of the vast majority of cryptocurrencies, including ADA.
• Regulatory uncertainty. Concerns about regulation and government crackdowns on cryptocurrencies have led to uncertainty in the market.
• Competition. While Cardano has its own innovative approach to blockchain technology, it faces competition from other blockchain platforms that offer similar functionality, most notably Ethereum.

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Top reasons Cardano will rise

Although ADA's price has fallen quite markedly, there are a number of reasons, beyond market sentiment, why it's likely to rise in the future.

1. Innovative technology. Cardano's distinctive approach to blockchain, prioritising security and sustainability, sets it apart from other blockchain platforms and gives it a competitive edge.
2. Growing ecosystem. Cardano's ecosystem is rapidly growing, which indicates strong interest and potential for the platform.
3. Strong community. Cardano has a passionate and engaged community of developers and supporters who are committed to the project's success.
4. Utility. The Cardano platform is designed for a wide range of use cases.

Is it good to invest in ADA in 2023?

As with any investment, there is always an inherent risk involved. However, based on the current trends and developments surrounding both Cardano and the crypto market in general, there are several reasons why it may turn out to be a good investment opportunity in 2023.

The crypto market has been showing signs since early 2023 that the current downtrend could soon end and be replaced by a bullish trend. If that happens, it will cause prices to rise across the entire crypto market. Cardano, currently one of the Top 10 cryptocurrencies by market cap, is unlikely to be left behind.

As for the longer-term outlook, Cardano also looks good. Platform's growing ecosystem, expanding partnerships and advanced technology have already made ADA one of the most popular cryptocurrencies. If the developers continue to successfully evolve the project, Cardano stands a good chance of growing steadily along with the growth of the blockchain technology market.

Having said that, we should point out that there are no guarantees with investments. So don't forget about risk management, never invest more than you can afford to lose and always do your own research.

Where will ADA be in 5 years?

It's virtually impossible to predict where Cardano will be in five years, but some experts believe that the cryptocurrency's potential for growth is significant. In a favourable development, Cardano has a chance to replace Ethereum as the most popular smart contract platform. In that case, the price of ADA could rise many times over.

How high will Cardano rise?

This question cannot be answered with certainty. However, if all goes well, exceeding the current all-time high looks likely.

When is the best time to buy Cardano?

The answer to this question depends on what you are planning to buy ADA for. If for direct use, e.g., money transfer, then it makes little difference to you when to buy it. If you are considering the coin as a speculative or investment asset, such tools as technical and fundamental analysis will help you determine the best time to buy.

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