Cardano faces a significant challenge to ascend into the top three cryptocurrencies by market capitalization, requiring an unprecedented price rally to achieve this goal.
Currently, Cardano (ADA) is trading at $0.65, with a market valuation of $23.4 billion and a circulating supply of 35.85 billion tokens. This valuation positions ADA in tenth place within the cryptocurrency rankings based on market capitalization.
In August, Cardano demonstrated its upward momentum by surpassing Dogecoin and Tron, securing the 8th position in the crypto hierarchy. This advancement occurred during a period when ADA experienced a short-lived surge past $1, while other cryptocurrencies struggled to maintain their value. The move fueled optimism among enthusiasts, who believe the token has the potential for further growth.
Furthermore, Cardano's founder, Charles Hoskinson, has expressed strong convictions regarding the network's superiority over Ethereum. He has publicly stated that Ethereum is "doomed to fail," a sentiment that aligns with the growing belief that Cardano deserves a higher ranking than its current position suggests.
Cardano's Historical Top 3 Standing
Cardano has previously achieved a top-three ranking among cryptocurrencies, notably during the bull market cycle of 2021. Data indicates that in late August and September 2021, ADA occupied the third spot, coinciding with its all-time high price of $3.10.
During this period, Cardano's market cap approached $100 billion, exceeding that of its closest rival, BNB, by more than $10 billion. At its peak, ADA stood alongside Bitcoin and Ethereum in the top three market cap rankings. However, the price began to decline, and by early October 2021, BNB had overtaken Cardano for the third position.
Despite this shift, many enthusiasts remain optimistic about Cardano's potential to recapture its former glory. To understand the magnitude of this aspiration, an analysis of the price increase required for ADA to reclaim a top-three spot has been conducted.
The Price Threshold for Cardano's Top 3 Re-entry
As of the current market conditions, Tether's stablecoin, USDT, holds the third position with a market capitalization of $182.5 billion. XRP previously occupied this spot before USDT, and BNB subsequently surpassed XRP earlier in the month.
Consequently, for Cardano to sustainably rank above Tether, its market capitalization would need to reach at least $183 billion. This calculation assumes that current market conditions remain stable and that assets like BNB and XRP do not experience concurrent growth.
Maintaining its current circulating supply of 35.85 billion ADA, a market cap of $183 billion would translate to a price of $5.10 per token. This represents a growth of over 684% from its current market price, pushing ADA beyond its 2021 peak and establishing a new all-time high.
The prediction of Cardano reaching $5 is a recurring theme among market analysts who anticipate such a price target within the current cycle. An earlier report highlighted an analysis suggesting that Cardano could rally to $5 if it successfully maintains a price of $0.51.
Another market observer, Chris O, has projected that Cardano could surge to a price range of $5 to $8, encouraging enthusiasts to disregard negative market sentiment or "FUD" (Fear, Uncertainty, and Doubt).