Cardano (ADA) and many other cryptos have dropped significantly today. But this has nothing to do with this project’s fundamentals. Today’s drop was driven partly by the announcement by Reddit that it would no longer be accepting bitcoin payments. This announcement has hit the market as a shocker, coming at a time when Twitter has made some negative news regarding cryptos. The result has been a collapse in the price of bitcoin, and with it, most of the altcoins. The correlation between bitcoin and altcoins has reached a point where you can predict the direction of the altcoins market, by just observing the price of bitcoin.
Luckily, bitcoin dominance in the market has been dropping and with time, altcoins will be able to unlock their true valuations. Once this happens, Cardano (ADA) will be a great beneficiary, and could easily see valuations of $10 and above.
This project has been making some great technical moves that ideally should see its price shoot up, were it not to bitcoin’s depressed prices. For instance, Cardano just announced the release of a software update that fixes all the bugs in the main net. This update has made the Cardano main net even better to use, and gives it a huge boost as a Dapps platform. Were Cardano decoupled from Bitcoin, such a move would be followed by a huge price jump. So will decoupling ever happen? Is there any hope for investors who have put their money in great projects like it? The answer is in the affirmative. Decoupling will ultimately happen.
It will mainly be driven by the increased use of cryptocurrencies outside of the speculative space. That’s because the primary reason why altcoins are so tied up to bitcoin is its first-mover advantage in the market, which makes it the first point of contact when trading in crypto exchanges. Given that most people investing in crypto right now are doing so for speculative reasons, it then follows that all other cryptos are tied up to bitcoin’s price fluctuations. Luckily, we are slowly seeing an adoption of cryptos in non-speculative purposes.
For instance, we have seen Ripple (XRP) get adopted by western union and many other financial institutions in the recent past. Cardano too has started attracting Dapps developers. There is no doubt that this is the beginning of the decoupling, and the beginning of the long-term growth of Cardano (ADA), and many other good projects that are currently bogged down by bitcoin.
Another factor that will drive decoupling is the acceptance of USD deposits by major exchanges instead of bitcoin. More exchanges are doing this, with Coinbase and Bitfinex leading the way. Eventually, this will be the norm.
With this in mind, it makes sense to start investing in ADA now, when it is trading at under $0.20. Going by its roadmap, Cardano is a project with a massive upside potential. For instance, Shelley which intends to make Cardano fully decentralized and autonomous is a game changer in the smart contracts space, and will give Cardano (ADA) a major boost in the future.