With crypto prices swinging wildly, it is easy to get caught up in the price speculation. Not only is it tiring, but it can also be demotivating especially when your favorite project isn’t doing so well. For instance, in the last few days, Cardano has gained and lost in equal measure, and anyone who bought just before the crash is deep in losses.
The best way to stay focused in this space is to focus on the fundamentals, i.e. the value that a project is adding with each passing day. Using this metric, one quickly realizes that Cardano is one of the projects that have so much going on at the moment. All the teams involved with this project: Namely IOHK and Emurgo, are doing some amazing things behind the scenes.
For instance, Emurgo supports lots of projects that will add value to Cardano in the future. One such project that Emurgo is supporting is Catallact. This is a project that aims to bring transparency in the market through analysis of crypto data. Through this project, it will be possible to separate data bot-generated trading data from that coming from humans. This is information that is critical to opening up crypto space. In fact, according to the Catallact team, this is one way that institutional money will come into this space. In an article published by Emurgo on the 14th of this month, the Catallact team argues that,
“As Cardano is the first third generation blockchain written with high assurance code and utilizing formal methods, the data flow on the Cardano blockchain will be significant and require Cardano’s solutions to scalability, sustainability, and interoperability. While the blockchain industry as a whole is still in its nascent era, these kinds of insights offer greater trading transparency for regulators and institutions in the future which will help the overall maturation of our industry.”
This is a big deal, and a reason to believe in the long-term potential of Cardano (ADA). That’s considering the fact that the IOHK is making some interesting moves of its own. The IOHK is making significant steps towards making Cardano a truly decentralized blockchain. Charles Hoskinson has already promised that Shelley will happen this year.
The only reason why it has delayed is that coding takes time and for such a complex system, putting hard timelines on when things will get done may not lead to the desired results. Otherwise, big things are happening behind the scenes. Once Cardano becomes a complete project that is decentralized and has working smart contracts, it will be unrivaled in terms of technical capabilities. When you combine this with all the projects that are building on Cardano through Emurgo, it’s not hard to see why this is a worthy investment going into the future.
Focusing on these fundamentals takes away the uncertainties that come with speculating on prices in the short-term. The perspective changes and Cardano becomes a project that has a bright future ahead of it. Based on fundamentals, the possibility of Cardano trading at multiples of its all-time highs is there, once blockchain technology goes mainstream.