The cryptocurrency market remained relatively subdued this week as September approaches. The top 20 cryptocurrencies by market capitalization ended the week with marginal gains or losses, with only a few notable advances from VeChain (VET) and IOTA (MIOTA), one of its closest competitors.
Cardano (ADA) was no exception. Below is our analysis and outlook.
Cardano (ADA/USD) price movement this week
Cardano’s ADA opened the week just above $0.10 and closed with a loss of roughly 5%, trading near $0.095. The decline continues to reflect the market’s cautious stance. Investors are displaying limited confidence and are waiting for clearer positive signals before committing capital. As a result, many prefer to stick with more established cryptocurrencies, and trading volumes remain relatively low.
Our overall view on Cardano
Cardano will mark its first anniversary in September. Bolstered by the December 2017 rally, the project enjoyed a promising launch before gradually slipping like many peers. The Cardano team is open about its ambition to compete with Ethereum, and the roadmap appears serious and promising. However, the platform is not yet fully mature—neither technically nor commercially—to win broad investor endorsement. At present, projects such as China’s NEO and EOS are perceived by some as stronger competitors to Ethereum.
When will the sector consolidate?
The entire cryptocurrency industry needs to professionalize and streamline if it wants to gain lasting credibility. We expect significant consolidation by 2021. New tokens continue to appear at a rapid pace, and only the best positioned projects are likely to survive in each category. Cardano benefits from a solid team and a project with genuine promise, but much depends on its ability to deliver on its objectives.
What is Cardano’s outlook?
If Cardano fulfills its promises, ADA could become an attractive long-term investment and see price appreciation. In the short term, however, Cardano’s outlook remains uncertain, and ADA will rely on renewed interest across the broader sector in the coming months to maintain momentum.
Unless you are an experienced cryptocurrency investor, Cardano may not be the most prudent choice right now. Additionally, heightened volatility driven by smaller investors could complicate the team’s ability to execute its ambitious plans. Given the current late-summer context, NEO appears to be a comparatively stronger option within this niche.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.