Cardano has experienced a phenomenal run. A year ago it was trading at $0.15 per coin and within 10 months it hit an all-time high of $2.96 per unit – representing a nearly 20x multiple. It has existed since 2017, and was created by Charles Hoskinson, (ETH) founder. Hoskinson and Vitalik Yeterin had some philosophical differences. Despite the differences, Hoskinson was able to copy the best features of Ethereum. He also found solutions for the weaknesses. These elements were then applied as his DNA for ADA.

Hoskinson made Cardano more than just a “store of value” token, opting to focus on utility and user retention – creating more of an “app store” ecosystem that spans a variety of verticals including finance, banking, healthcare, education and more. The most popular use of Cardano is in decentralized finance (DeFi), which can be accessed via several decentralized apps (dApps). These enable person-to-person lending and passive income generation from referral rewards. It does all this without traditional financial intermediaries or fees.

Cardano’s value is limited only by its developers and the applications they create. And that value has pumped ADA’s price more than 800% during the past 12 months. Cardano is down -48% in the past 90-days. According to CoinMarketCap.com’s chart, Cardano fell -48% between Sep. 1 and 2. Cardano was slipping early in the crypto correction. However, Cardano experienced a more severe slide last week when cryptocurrency exchange eToro declared it would delist ADA due to unknown regulatory concerns.

However, these are minor setbacks for an excellent project that’s currently trading at a deep discount and here are a few reasons why.

First, Cardano uses a proof-of-stake (PoS) consensus model to settle transactions, which simply means that users need only “stake” their ADA coins to participate in the network and earn new coins. PoS is more cost-effective than the proof-of-work model that uses expensive servers and cooling gear. Ultimately, Cardano’s PoS system is more sustainable, inexpensive, and environmentally friendly in the long run.

Second, Cardano’s development roadmap is on track. It has added DeFi and smart contracts – which are automated transactions that settle when computer coding conditions are met – to its network and is currently adding even more dApps and greater utility. After it completes its current “Goguen” phase it has two more development stages to finish – named “Basho” and “Voltaire” respectively – where programmers will improve and scale the ecosystem, and then move to a self-sustaining, community-centric governance model.

Cardano also has a loyal and dedicated base of supporters. This is evidenced by the fact that nearly 71% of the circulating supply is “staked,” which means investors are holding it for the long term as can be seen on the chart below from stakingrewards.com. It also has a $50 billion market capitalization and continues to rank in the top-10 of all cryptos – Cardano’s tokenomics are strong.

Each project has its downs and ups in crypto. Few have the vision and ability to program well, as well as outstanding programming skills, the proven development roadmap, Cardano’s leadership. Do not worry about a project. Instead, think about Floki Inu, Floki Inu, or other meme-themed projects. But the Cardano project will not only survive – it will thrive.

Flipside

• Although a nearly 50% drop in the first 90 days of the year is worrying, institutional investors could manipulate it to make profits or maintain a low price for discounting investing.

Why you should care

Cardano has more value than most other coins or tokens, because of its real-world potential. This impact is only going to increase with the network’s expansion and improvement in the near future.

Disclaimer: Author holds Bitcoin, Ethereum and Cardano as well as Chainlink and Energi.

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