Many people have started calling for a $50 ADA recently because some big YouTube channels are constantly shilling the figure. Benjamin Cowen took a look at the math, the market capitalisation, and what a $50 ADA would imply.
ADA has already done a 60x from the bottom in March 2020. That’s why a lot of YouTubers and Influencers have been shilling Cardano like crazy but ADA will have to do a total of 2500x from the bottom [March 2020] to achieve $50. This is probably not possible with the amount of selling pressure on investors that bought at the bottom (2:58).
The best evidence to say Cardano could do a 2500x in this market cycle is because Ethereum did a 3500x in the last market cycle. However, the market cap of Ethereum, when it was at its lowest [October 2015] was only $32 million, compared to Cardano’s low on March 2020 when the marketcap was already at $737 million. So Ethereum had a lot more room to shine because its market cap at the time was much lower compared to ADA’s bottom, which is more than 20x bigger in magnitude (3:39).
Also, ADA’s current market cap, which is at $38 billion, will have to grow up to nearly $2 trillion to achieve a $50 price. It is highly unlikely it happens in this market cycle when Bitcoin market cap is $1 trillion (7:37).
Benjamin says he is a Cardano bull. He was covering Cardano from as far back as when the price was at $0.025 and he thinks $5-10 ADA is a possibility in this market cycle, but he implores people to stay grounded in reality rather than living in a dreamland. He says $50 ADA is almost certainly not going to happen in the current market cycle.
This episode premiered on March 4th, 2021.
