2021 has been a very bullish year in the cryptocurrency world, starting the year with a $775 billion crypto market cap and closing the year with $2.3 trillion, after reaching an all time high in the crypto market cap of almost $3 trillion in early November.
Cardano (ADA), the sixth biggest cryptocurrency in market capitalization, had a strong year with an excellent bullish performance of +691% outperforming both Bitcoin (BTC) and Ethereum (ETH) with performances 75% and 453% respectively, according to CoinMarketCap
Cardano (ADA) started the year with a market cap of $5.5 billion with a value of $0.18 in each coin and ending the last days of the year with a market cap of $49 billion with a value of $1.46 in each coin, after reaching an all time high of $3.03 and a market cap of $97.52 billion in early September.
What drove Cardano’s price to reach ATH in 2021?
ADA’s price all time high coincides with the Alonzo upgrade, in early September, this upgrade got a lot of attention and is the major fact that drove the price up, reaching all time high until mid September where the price started to fall.
The long awaited Cardano’s Alonzo upgrade finally went live and brought the smart contracts to their blockchain, so developers can create decentralized apps (Dapps) and start entering in the world of DeFi (Decentralized Finance) and NFTs.
“This upgrade is the culmination of six years of incredibly hard work with some of the brightest minds in blockchain and beyond,” said Charles Hoskinson, founder of Cardano.
After reaching all time high in September of $3.03, it started to fall and go sideways in the month of October around 2$, and from November 10th it started a descending channel until recently when it finally had a breakout, and possibly began an ascending channel moving upwards, as referenced below:
ADA/USD chart. Source: TradingView.
What’s next for Cardano (ADA) in 2022?
According to WalletInvestor prediction algorithm model, they forecast an ascending and upward year in ADA’s price finishing the year by breaking the previous all time high of $3.03, having less returns than 2021 as you see in the picture below.
Other analysts expect that this bull run will continue next year, having a new ATH for Ethereum and Bitcoin and other cryptocurrencies, but nobody can really have certainty, in the crypto market anything can happen. However, one thing is definitely true, 2021 has been an important year for Cardano (ADA) ecosystem with its upgrade, and has been the year of DeFí and NFTs. Let’s hope 2022 will be the same or better as the crypto global adoption continues.