|

Cardano price targets $10 following new partnerships in Africa

  • Cardano founder Charles Hoskinson explains why the smart contract network has partnered with African countries.
  • Hoskinson dismissed rumors of ADA burn, stating that Cardano is focused on stability.
  • Analysts predict Cardano's return to the top three cryptocurrencies by market capitalization.

Cardano founder Charles Hoskinson reveals that ADA is counting on the "smart cow effect." The smart cow problem is when a group of individuals is faced with a technically difficult task, one of the members solves it. Hoskinson expects Cardano's partnerships with African governments to influence regulators in the United States. 

Cardano forges partnerships in Africa with focus on real-world blockchain applications

Charles Hoskinson, the founder of Cardano, is touring the African continent, meeting regulators and forging partnerships with governments and statesmen. 

Hoskinson believes that governments have infringed upon privacy and censored public information. He points out that US regulators have yet to focus on building the blockchain industry.

The Ethereum co-founder relies on the "smart cow effect" for Cardano to impact regulators and governments worldwide. Hoskinson noted in a recent YouTube Q&A session that Africa is uniquely poised to adopt blockchain technology faster than other continents. The continent is precisely positioned to benefit from the development of blockchain technology with the ongoing technical upgrade. 

A blog post published by Input Output Hong Kong (IOHK), the company behind Cardano, reads,

Well, Africa is a really special and interesting continent in that it's going through a massive upgrade. There are no allegiances to the systems of the past because those systems haven't historically worked out so well here. So that means over the next 10, 20 years, every single thing – from how compliance works to how stock markets are going to work to how national ID works to how academia is going to work – is up for change.

The founder dismissed the recent rumors of the implementation of the burn policy in Cardano. Cardano does not have plans to burn tokens. The current provision to stake ADA has attracted over 70% of the circulating supply. The percentage of staked tokens continues to rise as Cardano prepares for the next upgrade of its network. 

Percentage of total ADA tokens staked since Jan 2021

Percentage of total ADA tokens staked since Jan 2021 

Analysts have predicted that ADA could make a comeback to the top five cryptocurrencies by market capitalization. Gert van Lagen, a cryptocurrency analyst and YouTuber, expects ADA to enter price discovery mode in the ongoing bull market. Lagen has evaluated the ADA price trend and compared it to the Ethereum-killer's performance in the 2017 bull run.

Side by side comparison of ADA price trend in 2018-20 and 2020-21

Side by side comparison of ADA price trend in 2018-20 and 2020-22

Lagen's 2022 target for ADA price is $22. The analyst expects Cardano's native token to cross $10 by the end of 2021 based on his analysis. 

FXStreet analysts have predicted that ADA needs to reclaim $2.10 support to turn bullish. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Cardano Price Forecast: ADA capped at $0.20 warns of over 15% downside

Cardano price is trading in the red on Wednesday, reversing after the recent 25% recovery was capped at $0.2000 the previous day. Speculative demand in ADA futures is easing, with Open Interest and funding rates declining. The technical outlook is mildly bearish, hinting at a pullback toward the 50-day Exponential Moving Average at $0.1761.

Crypto Overview: Bitcoin steadies above $64,000 – PUMP, ZEC sustain gains

Bitcoin price edges above $64,000 at press time on Wednesday, heading toward its 50-day Exponential Moving Average at $64,652. Meanwhile, Pump.fun and Zcash sustain gains after a rebound on Tuesday, with bulls eyeing further upside.

Aave founder revolts against proposal to cap Ethereum staking incentives at 50% of supply​

Ethereum community members have pushed back against a new proposal that seeks to change the network's staking issuance policy by gradually reducing staking rewards as the number of staked ETH approaches 50% of total supply.

Ethereum Price Forecast: ETH holds steady below $1,900 as retail distribution rises
Ethereum (ETH) continued trading flat on Tuesday following modestly increasing exchange net flows and continued distribution across retail wallets. Ethereum on-chain data shows mixed sentiment across several wallet cohorts.
Bitcoin: Bulls hold the line
Bitcoin (BTC) edges slightly lower, trading at $64,300 at the time of writing on Friday but holding firmly above a key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) support BTC as they continued to attract institutional flows through Thursday, pointing to the fourth consecutive week of net inflows.