The host of Coin Bureau says that Cardano can spark a massive new wave of crypto innovation that will rival the launch of Ethereum.
Pseudonymous analyst Guy says tells his 1.36 million subscribers that with many decentralized applications (DApps) set to launch on its mainnet, Cardano is providing massive opportunities.
“We are now on the brink of another explosion in crypto innovation, the likes of which we haven’t seen since Ethereum launched back in 2015, and early adopters will stand to reap the greatest rewards.”
Guy says that one reason users and developers are drawn to Cardano is because of its unique staking system, which – according to him – makes it one of the most decentralized cryptocurrencies on the market.
“The staking rewards decline if there is too much Cardano in a single pool. This encourages decentralization…
ADA’s staking rewards are currently around 4.5% per year, and the fact that there is no staking lock or unlock time makes it a no-brainer to do so, hence, why nearly 70% of ADA’s supply is currently being staked. This makes Cardano the highest valued blockchain by active stake.”
However, Guy warns that ADA having the third-largest crypto user base could be a double-edged sword for developers.
“Cardano has over 1.6 million users and its community is arguably the most active in cryptocurrency. This is incredible, but it’s also a developer’s worst nightmare because they know there’s no way in hell their DApps can handle that kind of traffic…
As a result of this reality, almost every single Cardano project is dragging out its launch to stress test its infrastructure because if they deploy their DApps now, they will get wrecked.”
Cardano is trading at $2.37 at time of writing, according to CoinMarketCap.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal