Crypto Watch: Cardano Needs to 450x for Price to Reach $5 | Whale Defends with Staked ADA as Opposed to TVL

Although Cardano ADA is getting a lot of attention, especially when Vitalik asked the public what their favorite blockchain aside from Ethereum is, a lot of buzz suggests that the price could climb to $10.

This, however, can be quite hard as the coin will need to be 450x in order to reach just $5.

Will ADA Ever Hit $5?

According to Sham Doran on Twitter, there are people who are predicting ADA or Cardano will eventually hit $5. The tweet then provided an explanation as to how this can be achieved and why it is rather difficult for it to actually happen.

Doran noted that it seems like the top DeFi chains stabilize when they are at around 2-5x market cap to TVL or "2-5x cap:TVL." Examples of these were then provided, which included Ethereum, Binance Smart Chain, and Solana

Here are Examples of How the Top DeFi Chains Stabilize at '2-5x cap: TVL'

Ethereum - 288:115

BSC - 61:12

SOL - 30:7

(in billions)

ADA, on the other hand, is still in its DeFi infancy and 450x at (36 billion:80 million). The account then provides a word of caution since this means that in order for ADA to reach $5, the above range needs to be 30 billion-80 billion TVL.

ADA Staking Could be Considered TVL

Another Twitter account called ADA Whale, however, was quick to respond to this tweet by Sham Doran. ADA Whale provided an explanation of how the economics of the coin could be actually be more achievable.

The account did note that it was fair to point out that Cardano is actually a "Bitcoin-like" asset. What this means is that it is secure, scarce, and decentralized so TVL is actually not the full story.

The account explained that staked ADA could actually be the TVL as well. The account went on to compare ADA to Doge, which has 18 billion in assets, saying there is also a whole social aspect when it comes to crypto markets.

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ADA Comes in Forth Place

The tweet was a follow up to an older tweet that showed social transactions of coins versus their total market cap in a graph. As shown in the tweet, BTC remains the highest while Ethereum follows in second place and BNB follows in third place.

In fourth place is ADA and behind it are SOL and XRP, followed by other cryptocurrencies. Luckily, Sham Doran did reply stating that the account completely agrees that DeFi will not necessarily be the whole story.

Sham Doran also acknowledged that staking will also inject its own demand for ADA which is independent of DeFi.

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This article is owned by Tech Times

Written by Urian B.