A weekly newsletter decoding crypto, blockchain and the entire ecosystem.
By Rohas Nagpal
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All about Cardano (ADA)
In last week's edition, we discussed Dogecoin. This week we take on Cardano (ADA).
Did you know?
Cardano has recently overtaken Binance Coin to become the world's third-largest cryptocurrency.
ADA has a market cap of over $90 billion.
In the past 24 hours, more than $8 billion of ADA changed hands. That's over Rs. 59,000 crore.
Before we dive deeper, let's check out the latest news from the crypto universe.
According to Deloitte's annual global blockchain survey, digital assets may replace fiat currencies in the next 5-10 years.
Japanese exchange Liquid was hacked, and $97 million worth of crypto was stolen.
According to a survey of 42,000 people across 27 countries, India is among the top three countries in crypto adoption.
1. What is Cardano (ADA)?
History and overview:
Cardano is a blockchain network that is being developed into a decentralized application (DApp) development platform with a multi-asset ledger and verifiable smart contracts. Cardano hopes to become the platform of choice for large-scale enterprise use.
ADA is the native token of Cardano. It can be "staked" and in future will also be usable for services on Cardano.
There are three organizations behind Cardano - IOHK develops the technology, the Cardano Foundation supervises development and promotions, and Emurgo drives commercial adoption.
Cardano's full launch consists of 5 phases:
1. Byron (Sep 2017): mainnet launch of the Cardano blockchain
2. Shelley (Jul 2020): Ouroboros Proof-of-Stake (PoS) protocol went live
3. Goguen (2021): smart contracts and native token issuance features to go live
4. Basho: scalability and interoperability
5. Voltaire: voting, treasury system and governance by ADA holders
Proof-of-Stake (PoS) consensus mechanism called Ouroboros.
As of 23 August, its core metrics are:
All-time high (Aug 23, 2021)
All-time low (Oct 01, 2017)
Below is the graph for ADA prices over its recorded lifetime:
32.13 billion ADA
33 billion ADA
45 billion ADA
Circulating Supply is the number of coins / tokens in public hands.
Total Supply is the number of coins / tokens created minus the number burned.
Maximum Supply is the maximum amount of this crypto that can ever exist
Marketcap & Volume metrics:
Fully Diluted Market Cap:
Volume / market cap ratio:
Vladimir Club Cost:
Market cap = Current Price x Circulating Supply
Fully Diluted Market Cap is the market cap if the maximum supply was in circulation
Volume (24h) is the fiat value of this crypto traded over the last 24 hours
Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos
Volume / market cap ratio = 24h Volume / Marketcap
Velocity = 24h Volume / Circulating Supply
Vladimir Club Cost is the cost of owning 1% of 1% of an asset's "eventual" supply
Last 30 days
Last 90 days
Last 1 year
Last 3 years
Volatility measures the annualized standard deviation of daily returns
Sharpe Ratio measures the excess return for a given level of risk
Daedalus is a full-node desktop wallet for Cardano. It downloads a full copy of the Cardano blockchain and independently validates every transaction in its history. This provides maximum security and a trustless operation that does not rely on third-party servers.
Yoroi is a light wallet for Cardano that does not require downloading the blockchain. It is available as a web-based extension and a downloadable app.