According to analyst Tim Warren, the Altcoinmarkt will soon start a new advance, and Cardano (ADA) seems to play a key role in this. Although Ada is currently in tenth place in terms of market capitalization, Warren sees a strong chance that the coin will soon be able to penetrate the top five. What makes him so optimistic?
Strategic collaborations strengthen Cardano
Iin the podcast of ‘Investing Broz’ explains Warren that Cardano (ADA) is rapidly gaining ground, mainly due to strategic collaborations with big names such as Bitcoin (BTC) and Ripple (XRP). While many other crypto projects are for the time being, Cardano opts for an active approach.
According to Warren, founder Charles Hoskinson intensifies his ties with Ripple and maintains regular contact with CEO Brad Garlinghouse. This opens the door to new forms of interoperability and offers opportunities for further growth in the world of decentralized finance (Defi).
A striking example is the attempt to integrate Bitcoin liquidity within the Cardano network via the Lace Wallet. Such bridges between block chains could considerably increase the Total Value Locked (TVL) on the platform, says Warren.
Ada Koers must rise by 295%
To get hold of a place in the top five, Cardano (Ada) has to go beyond BNB, the token of Crypto-Ex-Exchange Binance. BNB currently has a market capitalization of around 95 billion dollars, while Ada’s is around 24 billion.
To close that gap, the value of ADA should rise by around 295 percent. That means a rate of approximately $ 2.64 per token. Remarkably, that would still be below the all-time high of $ 3.09, which ADA reached in 2021.
Warren acknowledges that such an increase is ambitious, but points to the strong fundamental developments and the increasing network activity that he makes this growth possible.
The role of Defi and Network Bridges
According to Warren, Cardano’s emphasis on Defi and Cross-Chain Integration is a potential game check. In particular, the possibility of attracting Bitcoin liquidity through our own infrastructure, such as the Lace wallet, can considerably increase the practical employability of ADA.
If these network bridges turn out to be successful and the Total Value Locked (TVL) actually rises, he does not only offer room for a higher course. It could also lead to a structural improvement of Cardano’s position within the global cryptorang list.
Source: https://newsbit.nl/analist-tim-warren-ziet-cardano-ada-stijgen-naar-top-5-momentum-neemt-snel-toe/
