Forbes editors Mark Hooson and Laura Howard for the U.K. have commented on Cardano (ADA) price outlook for 2024.
In their evaluation, the Forbes advisors highlighted Cardano’s initial promise to address Ethereum’s shortcomings. However, with the emergence of Ethereum layer two blockchain solutions, the experts argued Cardano’s once-distinctive features no longer hold the same influence in driving adoption.
The publication highlighted Cardano’s current underperformance, noting the asset is down 85% from its 2021 peak of $3.10.
To gauge its potential for this year, the analysis examined prevailing market forces concerning ADA, such as demand, supply, market sentiment, and competition.
Supply and Demand for Cardano
Regarding ADA supply, the Forbes advisors pointed out that over 35.25 billion tokens are in circulation, 78% of Cardano’s max supply of 45 billion. Accordingly, they emphasized that ADA still has significant headroom based on the available figures.
Meanwhile, given Cardano’s token issuance mechanism, it is projected to take over 100 years for the entire 45 billion ADA tokens to enter circulation. Essentially, the Forbes advisors noted that no significant pressure on the supply side may impact ADA’s price.
Regarding demand, the analysis highlighted that the level of transactions on Cardano correlates with its demand. Data from the intelligence platform IntoTheBlock suggests that the current one-week average daily transaction count stands at 57,000.
The Forbes advisors observed that this figure has remained relatively stable over the past few years, indicating a lack of significant demand for ADA.
Moreover, the report referenced Google Trends search data, revealing a decline in search volume for Cardano following a surge in early March. Forbes also observed that interest in Cardano has generally remained flat since 2022.
Additionally, the analysis scrutinized the number of ADA addresses. According to the latest data from the analytics platform Messari, the number of active ADA addresses as of April 15 is 40,629. This figure represents a nearly 50% decrease from the count recorded exactly one year ago.
Cardano Active Addresses
While emphasizing that the data should not be viewed as a conclusive indicator of interest in purchasing ADA, the Forbes advisors asserted that collectively, the factors could indicate a lack of significant pressure on the demand side, potentially resulting in relatively stable prices.
ADA Market Sentiment and Competition
On market sentiment, Forbes observed a notable pessimism within the community regarding Cardano’s prospects. This sentiment has become so pronounced that the ADA’s founder, Charles Hoskinson, recently defended Cardano in a post on X.
In terms of market competition, Forbes highlighted ongoing industry debates surrounding Cardano’s long-term potential. Some proponents argue that Cardano presents a more viable alternative to Solana (SOL), citing its similarities and superior track record on network uptime.
2024 Outlook
Ultimately, Forbes editors contended that current market conditions do not suggest a bullish trend for Cardano in the near future. However, they also noted that there is no indication of imminent decline.
Meanwhile, they added that Cardano may continue to follow the current momentum in the crypto market influenced by Bitcoin.
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