Visa Cryptocurrency

Future Hydra Upgrade Makes Cardano a Speculative Buy

Future Hydra Upgrade Makes Cardano a Speculative Buy
Written by publishing team

Cardano (CCC:ADA-USD) Software engineer Sebastian Nagel estimated in September 2021 the launch date of IOHK hydra upgrade It will happen between 6 and 12 months.

Source: shutterstock

If true, this would trigger its launch sometime in 2022. This would do wonders for the cryptocurrency price, which has almost lost ground. 57% of its value from an all-time high in September $3.10 Until the end of 2021, which closed at $1.31.

during the same period, Solana (CCC:LEFT-USD) – She and Cardano Two of my favorite cryptocurrencies Because it offers actual interest – up 16.5%. As a result, Solana is the 5th largest cryptocurrency with a market capitalization of $52.2 billion. That’s $8 billion higher than Cardano in sixth place.

If Cardano wants to revisit $3 in 2022, he’s going to need some good news. Fortunately, Hydra seems to be just a ticket. Here’s why.

Hydra gives Cardano processing speed

In early November, IOHK CEO and founder of Cardano, Charles Hoskinson, was asked about Hydra, Second layer scaling solution.

He stated, “We will continue to add resources to Hydra, and try to identify some teams so we can balance the course of action as it is a high commercial priority. And it will be very important if we can offload a large number of transaction traffic that will come from all the applications coming in.”

If all goes as planned, the future could see the Cardano network processing up to one million transactions per second (TPS). considering Visa (New York Stock Exchange:Fifth) Approximately 24000 tons per secondIt’s a huge step forward in scalability.

But that’s a big deal if.

Solana is currently being treated 65000 tons per second. It is considered one of the block chains, if not the fastest. Had Cardano offered transaction speeds 15 times faster than Solana and 41 times faster than Visa, it wouldn’t take long for it to surpass its previous market cap.

As a result of the capabilities of Hydra, Price estimates for 2022 Cardano costs anywhere from just over $2 to $4.31, according to Investor Brendan Ryrick. That was in early November. in late december, Investor Assistant News Writer Shri Dua Reported prices Up to $15.17 for Cardano in 2022.

The latter should be the best case scenario for Cardano and Hydra.

Here’s how you’re likely to play

Mine Investor His colleague, Josh Enomoto, recently compared Cardano to Austin, Texas. You will have to read his comment to understand how it is Adequate comparison.

One line caught my attention: Cardano can be faster and faster The blockchain is more secure, higher and deeper. But I’m sure it can’t be all of these things And Cheaper. “

In the end, Josh argues that Cardano has become technically superior Ethereum (CCC:ETH-USD), will come at higher costs due to the nature of decentralized distributed systems.

Now, where I might depart from my colleague’s assessment is to say that even if all of this is implemented as Josh suggested, that doesn’t mean the ADA-USD price won’t move much higher once Hydra launches later this year.

Of course, it also seems absurd to think that Cardano will trade at $15 by the end of 2022, a 1036% increase over today’s price of $1.32. This does not happen. However, since mid-February, the ADA-USD has been trading above $1, indicating that it will take terrible news to send it below this faux floor price.

So, with Hydra potentially boosting transaction processing speed in late 2021 or early 2022, it appears that buying at current prices would not be a bad move on the part of speculative investors.

While I love their partnership with the Ethiopian government to create a blockchain-based student performance tracking system, I am not a speculative investor. So, you won’t see me buying yet.

If you are a speculator by nature, I think that buying cryptocurrencies before launch makes a lot of sense. However, if you’re anything like me, I’ll wait for the Hydra upgrade to go down. Then you can assess what that means for Cardano’s future.

Until then, we don’t know.

Published in, Will Ashworth He did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to Posting Guidelines.

Will Ashworth has written about investments full time since 2008. Publications he has appeared on include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and many others in both the US and Canada. He particularly enjoys creating model wallets that will stand the test of time. He lives in Halifax, Nova Scotia.

About the author

publishing team