Cardano’s Long Run Has Only Just Begun

Cardano (ADA, Tech/Adoption Grade “B-”) is up a modest 3.09% since the July 29 Shelley hard-fork.

As of this writing, among the top 10 crypto assets included in the Weiss Crypto Ratings, ADA alone is in the red for the last 24 hours.

It’s only when you scale out that you can see the impact of its ability to deliver on its “Proof of Stake” promise. Indeed, over the last 90 days, ADA is up 176.72%.

Bitcoin (BTC, Tech/Adoption Grade “A-”) is up 21.05% for the same time period. And Ethereum (ETH, Tech/Adoption Grade “A”) is up 87.48%.

Indeed, Cardano is tops among the top 10 crypto assets when it comes to 90-day market performance.

But even that is only part of the story. As we noted last week, “The move from the centralized Byron network to the decentralized Shelley network ‘would make Cardano 50 to 100 times more decentralized than other prominent blockchain networks.’

Yes, last week we said, “The successful rollout of Proof of Stake will probably take it higher, faster.” But this is not a short-term story. This is about long-term efficacy.

That’s something the Weiss Crypto Ratings model takes into account, as Juan noted in the latest installment of CryptoBytes.

Given what’s happened, @TEOPASSS asked, “Is Cardano’s rating updated after the Shelley fork? I’m asking out of curiosity.” Here’s a lightly edited transcript of Juan’s reply…

Shelley is already reflected in our technology model, because we had full confidence that it would come out with this (fork). We’re also reflecting on that same model that Cardano is capable of running smart contracts and dApps (distributed applications) because we think these things will come out eventually. So, when Cardano pushes a code update, it doesn’t really reflect on our ratings, unless it’s something new on the roadmap that wasn’t there before.

So, the way Shelley would lead to an upgrade in our model would be increased usage through Shelley.

Basically, if usage metrics for Cardano improve in a significant way post-Shelley, you will see that reflected in our ratings, but it’s not going to be overnight.

As the fundamentals for the blockchain, that is Cardano, improve over time, it will be reflected in our ratings.

Best,

Juan and Bruce

About the Contributor

Dr. Bruce Ng is a literal rocket scientist who was among the first to write about DeFi. Today he applies the same mathematics and scientific methods to the crypto space to discover the world’s most promising, and potentially most profitable, altcoins.

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