Charles Hoskinson, the founder of Cardano, expressed his views on the long-term potential of the ADA token, stating that it may grow much faster than Bitcoin.
Hoskinson’s Prediction on ADA Growth
Hoskinson claims ADA could grow 100 to 1,000 times, potentially pushing its price to between $600 and $6,000 from its current level of $0.7791. He bases this view on ADA's market capitalization of $27.5 billion, which is significantly smaller than Bitcoin’s $2.34 trillion.
Factors Supporting ADA Growth
One of the key factors driving ADA's growth is that nearly 60% of its circulating supply, equivalent to over $14 billion, is staked. Hoskinson argues that this promotes supply stability and long-term holding behavior, which may support price appreciation.
Criticism and Current Trends of ADA
Despite Hoskinson’s optimism, many skeptics point out that ADA has challenges. Cardano’s DeFi ecosystem lags behind competitors, with a total value locked of $354 million compared to Ethereum’s $70 billion. Furthermore, regulatory risks and slower-than-expected feature rollouts also raise concerns among investors.
Hoskinson's prediction raises questions about ADA's long-term prospects and its ability to compete with Bitcoin despite the existing issues within the system.
