Could Cardano (ADA) become the Apple of cryptocurrencies?

It’s been a great year for the Cardano blockchain. Its native token ADA shot up to record levels. ADA soared so high that it managed to beat out other big players, notably XRP, Binance Coin and Tether. Charles Hoskinson’s coin

became the third largest cryptocurrency by market capitalization. Sponsored Sponsored

But can

the

ADA price rise another 25 times to reach the market capitalization of tech behemoth Apple, which currently stands at more than $2.4 trillion? One analyst took a closer look at what Cardano

can learn from Apple.

Can Cardano outperform Apple?

Cardano is positioning itself as one of the most important in a group of blockchain projects currently being described as ” Ethereumkillers.” Like Solana, Binance Smart Chain and Polkadot, it is seen as one of the projects that could one day adopt Ethereum’s “children” – DeFi and NFT

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ADA is doing great this year. Over the past few days, Cardano’s native token has gained incredible momentum. It has led to a new all-time record high of $2.97. Currently, the exchange rate stands

at $2.73. And while it’s down 2.4% over the past day, it’s still at a 34% gain to put the past week in perspective.

But can Cardano rise another 25 times and rival the capitalization of tech giant Apple? Trader, analyst, and YouTuber

Lark Davis believes that, by all means, it is possible. However, in order to achieve this, Cardano needs to focus on a few things. <blockquote class=”twitter-tweet”>But

let’s think beyond simple crypto comparisons.

Apple has a market cap of 2.4 trillion. For ADA to reach this level it would need to see the price do a 25X = $50 per ADA-

Lark Davis (@TheCryptoLark) August 24, 2021

What does Cardano need to do to become the “Apple of cryptocurrencies”?

The debate over whether Cardano can dominate the cryptocurrency market is pointless without a full rollout of smart contracts. For this reason, Alonzo ‘s upcoming hard fork and the associated smart contracts functionality are extremely important to the project.

However, Davis believes that this is just the beginning. Indeed, Cardano must make efforts to catch up with its rivals. According to the analyst, its current metrics do not look very impressive. Davis said:

Due to the lack of smart contracts, Cardano lacks market share in all key metrics. Total value locked in defi 0, daily NFT sales volume tiny, daily transactions 82k, 2 million addresses total

On the other hand, Cardano’s main rival, Ethereum, is thriving in terms of these metrics:

Ethereum has a TVL of 114 billion, daily NFT sales volume of over 100 million, daily transactions of 1.2 million, 166 million total addresses. Plus first mover advantage and near universal acceptance of ETH tokens and the ETH standard on exchanges and DeFi.”

As if that wasn’t enough, Cardano also faces competition from several other “Ethereum killers”. Binance Smart Chain, despite attacks on its DeFi platforms, has come out on top and attracted billions of dollars in DeFi. Also vying for a piece of the pie are Solana, Terra, Avalanche, Polygon and <a href=”https://beincrypto.pl/cena/zilliqa/”target=”_blank” rel=”noopener”>Zilliqa.

However, being an Ethereum killer is just the beginning. At press time, Ethereum’s market capitalization is $386 billion. This figure is one-sixth of Apple’s market capitalization.

To compete with Apple, Cardano would have to be massively adopted worldwide. Davis believes ADA portfolios would have to reach close to a billion. The analyst says this is a “herculean task.” Especially considering that it would require governments to accept cryptocurrencies, and there is currently a lot of resistance and skepticism.

Cardano will also need “usability.” What does this mean according to Davis? That “daily transaction totals would need to be at least 5 million, and the value of funds transferred would likely need to reach 100 billion. TVL DeFi would have to be a trillion dollars.”

Still, that’s not all. One of the reasons Apple is so successful is that it builds products that people can’t live without. Consequently, users are willing to pay the right price for them. Etherum also has a similar characteristic. In fact, users pay astronomical fees just to get access to services like Uniswap, Aave, OpenSea, and Rarible.

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