Crypto trader and influencer Elliot Wainman says Cardano (ADA) could be going through a rapid evolution that may unleash huge gains for early investors in the ecosystem.
Wainman tells his 322,000 YouTube subscribers he believes that those who invest in projects built on Cardano can make sizeable profits.
“It does feel as if there’s a sea change on the horizon here, and that Cardano is not only going to start shipping, but that the projects and ecosystems that will be built over there are set to have Solana-like, Polkadot-like, BSC-like (Binance Smart Chain) gains, and that means that those who invest early in the right projects will most likely experience some serious parabolic gains.”
Wainman notes that Cardano has some of the highest levels of social engagement of any crypto project. The analyst adds that Cardano founder Charles Hoskinson knows how to “corral people” and galvanize communities.
“Now people love to hate on this but I believe that one of the most powerful valuation tools for crypto is Metcalfe’s law. This is why Bitcoin tends to go parabolic the more people get involved in it. Essentially, Metcalfe’s law is the concept of how you can calculate the actual value of a network. And that’s what blockchains are. They’re networks of computers, of developers, of users.
Metcalfe’s law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). So essentially, the more users, the more people, the more value.
Cardano does have a knack for adding users and people to its network in a way that other blockchains should certainly strive to do, and something that I think that they can do pretty uniquely. I think it comes down to Charles [Hoskinson] and his unique charisma.”
Still, Wainman believes projects will start on Ethereum because of the current user network and fundraising opportunities it offers.
“People will start with ERC-20s, raise a bunch of money, and then go over to Cardano. And I do believe that the projects that are able to captivate some impressive user metrics on Cardano early are going to have the PancakeSwap effect. They’re going to have the effects that other projects had when they moved hard and early into these new blockchains.”
ADA is trading at $1.61 at time of writing and is down 8.6% in the past 24 hours, though it’s up nearly 19% on the week, according to CoinGecko.
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