The price of Cardano started March strongly with a 78% spike within 2 days. It then began to see a gradual dip and lost 40% in value. After that, it stabilized, and since March 10, the price has been following a sideways trading pattern, which is a sign of accumulation and could indicate that the bulls are gearing up for a rally.
Looking at the bigger picture, the zone around $0.6, from which the price has been bouncing, has been in place since mid-November. The price has tested the support most notably at the beginning of February, mid-February, and then in mid-March. This level has been a good springboard and the Cardano price looks ready to bounce again.
According to an analyst on X, Am_Panic, some other metrics also point to compelling reasons why the ADA token is currently a good buy. The following paragraphs will explain their perspectives.
Undervalued Price
Am_Panic points out that Cardano current price of $0.70, corresponding to a market capitalization of $25.15 billion, represents an attractive value proposition.
When compared to Ethereum’s price exceeding $700 and its $84 billion market cap, ADA appears significantly undervalued considering its development roadmap and growth potential. He emphasizes that this price-to-potential ratio makes Cardano worth considering for investors looking for assets with substantial upside.
DeFi Surge
The Total Value Locked (TVL) in Cardano decentralized finance ecosystem has increased by 40% since January 2024, reaching $360 million. Am_Panic interprets this growth as a strong indicator of increasing adoption and utility.
He notes that this momentum is particularly significant given industry projections suggesting the DeFi sector could expand tenfold by 2030. This positions Cardano to potentially capture substantial value as the broader DeFi market continues to mature.
Here is 5 reasons why Cardano $ADA is a good buy.
Undervalued Price:
At $0.70 with a $25.15 billion market cap, ADA’s price-to-potential ratio looks attractive compared to Ethereum’s $700+ price and $84 billion market cap, given Cardano’s growth trajectory.
DeFi Surge:
TVL… pic.twitter.com/HAPlvbyho5
— Am_Panic (@am__panic) March 17, 2025Hydra’s Scalability Promise
According to Am_Panic, Cardano’s layer-2 scaling solution, Hydra, represents a major technological advancement that could dramatically enhance the network’s capabilities. The solution aims to eventually support over 1 million transactions per second.
Recent testnet results have already demonstrated 1,000 TPS in early 2025, marking significant progress. He believes this scalability breakthrough could establish Cardano as a leading platform for high-throughput decentralized applications, driving greater developer interest and user adoption.
Read Also: Cardano (ADA) Breaks Out: Can Bulls Overcome Key Resistance at $0.83
Bitcoin OS Bridge
Am_Panic highlights the upcoming Bitcoin OS Bridge, scheduled for Q1 2025, as a potential game-changer for Cardano. This integration could channel between $1-2 billion in Bitcoin liquidity into Cardano’s DeFi ecosystem.
He projects this influx could potentially double the current TVL while simultaneously increasing demand for ADA tokens. This bridge represents a strategic connection to the largest cryptocurrency by market capitalization, potentially bringing new users and capital into the Cardano ecosystem.
Growing dApp Ecosystem
The Cardano ecosystem now hosts more than 200 decentralized applications and 3,500 smart contracts, reflecting its expanding utility. Am_Panic emphasizes that this growing application layer demonstrates real-world adoption and creates multiple value drivers for the underlying ADA token. He suggests that as this ecosystem continues to develop, network effects could accelerate adoption rates and strengthen Cardano position in the broader blockchain.
Am_Panic concludes that while all investments carry risk, these factors collectively point to Cardano being potentially undervalued at current prices. He suggests that investors consider these fundamentals when evaluating ADA as a potential addition to their cryptocurrency portfolios.
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