Exploring ChatGPT's Bold 2024 Forecast: ADA's Price Revolution
Should We Trust Chat-GPT’s Cardano Prediction?
The digital asset market is constantly the subject of speculation. Everyone tries to predict when Bitcoin will reach $1 million per token and which new crypto on the block will rally within the next few months.
And as we have more tools at our disposal, many analysts try to give more accurate predictions.
Recently, a journalist turned to the famous generative AI Chat-GPT to ask how ADA, the native token of Cardano, will perform in 2024. The AI said that the ADA price will reach $10 by the end of 2024, which is 25 times what its current value is.
While Cardano lovers might want to rejoice at the news, it is worth looking at whether or not this is a realistic idea.
A Brief History and the Current State of Cardano
First things first, it is important to understand what exactly Cardano is and how it has come to be one of the biggest blockchains in the world.
Cardano was founded in 2017 by Charles Hoskinson, who was also a co-founder of Ethereum but left the project after butting heads with Vitalik Buterin. The idea behind Cardano was to improve on what he saw as some of the flaws that plagued Ethereum. These included things like scalability and security.
In fact, Cardano is considered one of the ‘Ethereum Killers’ that have made such an improvement that they threaten Ethereum’s dominance. Obviously, six years after Cardano first launched, Ethereum is still the second-biggest crypto on the planet.
But that doesn’t mean that Cardano is far behind. ADA is within the top 10 tokens by market cap and is worth over $0.50 per token as of this article.
And, of course, much of this development can be credited to the Cardano blockchain. Because it is highly scalable (it can process up to 1,000 transactions per second), energy-efficient, and safe, the Cardano blockchain has seen a lot of use within the blockchain industry.
Speaking of energy efficiency, Cardano had operated on a proof-of-stake consensus for years before Ethereum finally made the switch in 2023. But even now, Cardano still has a leg up in terms of its scalability and this is reflected in its applications.
Applications of Cardano and ADA
One of the things that has kept Cardano relevant in the crypto industry and could be the key to ADA’s future price movements is its various use cases, of which it has many. Some of Cardano’s use cases are as follows:
- DeFi: One of the biggest applications of blockchain technology in general has been decentralised finance (DeFi) which offers many of the same products and services as the traditional financial system but with a blockchain twist.
Cardano has been used as the foundation of many DeFi projects such as Axo, Liqwid, SundaeSwap, and much more. The fact that these projects are built on Cardano means that ADA will have to be leveraged to complete transactions and this inevitably boosts its value within the market.
- D’Apps: Cardano’s scalability comes in very handy in the development of decentralised apps (D’apps). Being used to create various applications can secure long-term use for a blockchain and Cardano has not lagged behind in this.
Some of the D’apps built on the Cardano blockchain include Minswap, JPG Store, Labs by Mutants, and so on. As more D’apps are being built, there will be a need for the features that Cardano offers besides scalability, including fee structure and security. This means that Cardano and its native token will continue to be widely used.
- Domestic Payments: As a currency, ADA has become quite popular for everyday domestic payments. Sever merchants such as BestChange and WideVPN are known to accept ADA for their products and services and this creates a demand for the token as a means of payment.
We also need to consider things like casinos. It is not unusual to find crypto casinos that accept ADA alongside their other tokens or even a dedicated Cardano casino. As online gambling gets even bigger, those who choose to gamble with ADA will find even more avenues to do so and this represents another application of the token.
- Investments: Also, we can’t forget about the fact that ADA is an investment vehicle in its own right, and a very good one. ADA sits among the top ten cryptos by market cap and has seen positive price movements this year, delivering healthy returns for consumers.
We also must remember that ADA is based on a proof-of-stake consensus, which means that the token can be staked and earn interest. Anyone interested in crypto investments would find ADA a good choice, whether for speculative trading or for the less risky option of staking.
How 2024 Might Look For Cardano
Moving back to the Chat-GPT prediction of a 25x increase in ADA’s value, it is worth looking at how 2024 might unfold for Cardano. One of the first notable events in the crypto calendar is the possible approval of a Bitcoin ETF by the SEC.
BlackRock is very close to approval and while this specific ETF is for Bitcoin, it could lead to more opportunities for the industry as a whole. We are already seeing positive price movements for Bitcoin and this tends to trickle down to the major altcoins.
From what we’ve seen, the market should enter a bull run in 2024 and Cardano will likely reap the benefits.
Charles Hoskinson has also dropped some hints about what is to come in 2024, saying back in October that, “2024 will be the Mithril age of Cardano”. Some of the things to expect include the Mithril running without interruption since epoch 425, a reduction of node bootstrapping time to under 20 minutes, and engagement of SPOs.
All these will inevitably lead to a better state of the Cardano ecosystem and benefit its overall market price.
Is the Prediction Accurate?
So, with the history of Cardano, its upcoming developments, and its use cases, is the 25x value increase accurate?
Of course, we’ll have to wait and see but current factors point towards a spike in the Cardano price in the future. Its underlying blockchain still has many of the same factors that made it so popular in the first place and seeing as the DeFi and D’app markets are not going anywhere, neither is Cardano.
We also need to consider the current market trends.
Unless something drastic happens, the crypto industry should see a successful 2024, with many of the major altcoins increasing in their value. If Bitcoin and Ether are eyeing such ambitious price points in 2024, there is no reason why ADA will not also see a price spike.
Whether it will reach $10 or not is yet to be seen but we can be sure that ADA will have a profitable year ahead.
Conclusion
Cardano has been a giant in the industry for years now. Initially created to improve on the perceived flaws of Ethereum, Cardano and its native ADA token have become beloved projects in their own right and the next year seems to have great things in store for them.
Chat-GPT predicts the price of ADA rising to $10 and while this is ambitious, it is not too far-fetched. Current industry signs point to ADA rising in value next year, regardless of the specific figure.
FAQs
What is ADA?
ADA is the native token of the Cardano ecosystem based on a proof-of-stake consensus
Who founded ADA?
ADA was founded by former Ethereum founder Charles Hoskinson along with Jeremy Wood in 2017.
What can you do with ADA?
You can use ADA to access the plethora of applications developed on the Cardano blockchain, as well as for domestic payments, gambling, and as an investment vehicle.
Will ADA reach $10 in 2024?
The current trajectory of the industry suggests that ADA will increase significantly in price in 2024 but it cannot yet be confirmed if it will reach $10 specifically.
