Imagine you will put 1.000 Usd and forget. After years you have a million.
It can’t be denied that the future seems very bright for Cardano. After years of development and painstaking peer-reviewed research, Cardano is finally delivering on its promises.
A scalable decentralized blockchain that now houses. Smart contracts too. Allowing for a limitless ecosystem to be built on top.
Many people think that it is too late to invest in Cardano. However, now considering the hard work of getting the blockchain up and running is all but done.
So if you think Cardano’s growth is over and it won’t ever add any value ever again, then maybe yes.
But there’s still so much to come from ADA. And Ethereum and Bitcoin and way more coins, in my opinion. But specifically for ADA, yet to come is the actual rollout and growth of all the dApps, Dexes and DeFi that blockchain users have come to love.
So how might Cardano be valued in the future? How might the ecosystem grow in the future? And how does this feed into a possible investment case right now?
Cardano ADA Valuation Methods
To properly calculate the possible future value of Cardano, we can try to use some industry standard valuation methods to conclude. The easiest way to evaluate and compare companies is through EPS or Earnings Per Share.
You take each company’s earnings, divide that by the number of shares, and there you go, you can find out who is the most profitable. Actually, a similar method has been developed for crypto, called NVT Ratio or Network Value to Transactions.
Basically, it gives us a ratio of crypto’s market price compared to how much value is transferred on the blockchain each day. Cardano doesn’t actually have an ecosystem or many public transactions flowing through it yet.
ADA is priced in anticipation of those things. But we can see that Bitcoin’s NVT at the moment is around a hundred. So that means that the market cap is around a hundred times the value of daily transactions. And you can see it ranges from around 60 to 150.
Ethereum’s current NVT is actually around 100 as well. So again, as you can see, it does fluctuate, but 100 is a nice number for this example.
Working backward, then if we give ADA the same NVT ratio, we could suggest that at the current price of around 80 billion near all-time highs. Read More…
Categories: CARDANO ECOSYSTEM