Regardless of the falling crypto market, the Cardano community works tirelessly. The aim is to maintain the blockchain development of the Cardano network. Recently, the Cardano blockchain secured a position in the huge decentralized app store called Dapp Radar.
The app store also revealed on September 5, 2022, that it supports the proof-of-stake consensus mechanism of the Cardano blockchain.
According to market watch, ADA has grown by over 1,800% since the time of its launch. This growth has also brought the token under the radar of several crypto investors and traders.
Keep reading to know how many Cardano coins there are and the ADA supply limit. We provide the answers and more information about the ADA blockchain.
Understanding Cardano Crypto?
The Cardano (ADA) token is one of the PoS-based blockchains in the crypto ecosystem. The token emerged as a third-generation digital currency platform in September 2017.
The Cardano blockchain platform helps create DApps (decentralized applications) and build smart contracts.
The blockchain also supports the generation of protocols like games, new digital tokens, etc.
The Cardano foundation began with Charles Hokinson, also recognized as the co-founder of the Ethereum network.
History had it that Hoskinson ignored the Ethereum blockchain project after the controversy with Vitalik Buterin, Ethereum’s other co-founder. The argument was based on whether to commercialize the Ethereum network.
The idea behind the Cardano blockchain – how Cardano works
The development and design of Cardano focused on making it a scalable, interoperable, and sustainable blockchain. These are some of the shortcomings of Ethereum and Bitcoin.
Cardano's operational system was why its supporters tag it the Ethereum killer.
The Cardano (ADA) blockchain uses the proof-of-stake consensus system of operation. Generally, this mechanism doesn't require high energy to operate as opposed to the POW (Proof-of-work) system, the consensus algorithm of the Bitcoin blockchain.
Cardano uses a mechanism known as Ouroboros, unlike BTC and Ethereum. This PoS-based mechanism of Cardano is responsible for the environmental friendliness of the network’s operations.
The proof-of-stake consensus of Cardano
When there’s a need for a common agreement, the proof-of-stake consensus becomes the alternative mechanism. This mechanism is dissimilar to the proof-of-work that uses computing power to solve mathematical problems.
The proof-of-stake mechanism comes in handy when users of a blockchain need to validate transactions on the blockchain. They achieve this objective by committing or staking their digital tokens.
In the case of Cardano, these users lock the Ada token in a space known as the Stake pool. The idea here is to ensure the security of the Cardano blockchain.
As such, using wrong information to manipulate the network results in the loss of the funds gained by betting the Ada token. The design of the system doesn’t support payment approval through network manipulation.
On the other hand, users who contributed to the Cardano blockchain by staking their tokens receive rewards in ADA. Meaning valid users who contribute to the protection of the network can benefit from the interest to their income.
The acting validator node of the Cardano blockchain is the stake pool where users lock their Ada tokens. The stake pool has an owner who commits to the maintenance of the node. There are other participants in the stake pool whose job is simply staking the Ada token in the stake pool.
The Ouroboros mechanism of the Cardano proof-of-stake –how it works
- The Cardano blockchain consists of blocks that are segmented into slots. Participants save every data and information on the Cardano blockchain in these slots.
- A group or set of these slots makes up an epoch.
- Certain stake pools on the blockchain become slot leaders through the random selection of the mechanism. Every slot leader receives a task to develop new blocks on the blockchain. They're to accomplish this task by assessing and verifying the transactions performed in their different slots.
- Every approved block on the Cardano blockchain rewards the participant and the owner of the specific stake pool. Usually, this reward comes as Ada tokens.
It takes approximately 20 seconds to generate a new block on the Cardano blockchain.
The concept of the stake pool
- There are two basic ways to earn in the Cardano ecosystem. As an ADA holder, you can receive rewards by staking your ADA holdings to the blockchain's stake pool operated by a participant (someone else).
- The second option is to run the stake pool yourself – as the pool owner or operator. However, to run your stake pool, you need to gain additional knowledge about the system.
- For a stake pool to be the slot leader, it needs to have more Ada tokens locked in it.
- Following the new transaction validation of a slot leader on the Cardano network are the confirmations from other staking pools. This is to ensure the precision of the validation. A new block will be created after reaching a certain number of confirmations.
- On the Cardano blockchain, a staking pool is not a slot leader until the information in past blocks is verified. This is where the consensus mechanism (Ouroboros) of the blockchain comes in. it ensures these pieces of information on the blockchain are accurate every time.
- The proof-of-stake mechanism makes it easy for users to protect the network. Locking the Ada token in the stake pool is possible even without unique equipment, and it's open to all network users.
As users perform this task, they receive passive income for the maintenance effort of the blockchain.
The Cardano native token wallet
The Cardano blockchain offers two basic wallets: the Yoroi and Daedalus.
The Yoroi wallet is responsible for the fast and simple storage on the Cardano network. It functions as a one-click-install app that doesn’t download additional history copies of the blockchain.
This wallet functions dissimilarly to the Yoroi wallet. The Daedalus wallet is a desktop-based wallet created by IOHK, a blockchain engineering, and research company.
Primarily, Daedalus functions by downloading and validating every dealings on the blockchain’s history independently.
Cardano Blockchain, Major Benefits
Cardano is a modern-day digital currency with some unique advantages. The utility difference between Cardano and Bitcoin is more glaring when performing microtransactions.
For instance, purchasing an NFT of $10 appears more user-friendly to the value in Cardano coins than in BTC. Deducing the dollar fraction in such a case is pretty easier. The majority of these benefits are not in the predecessors.
More benefits include:
Reduced carbon footprint
The reduced carbon footprint of the Cardano blockchain represents its low energy consumption upon usage. The blockchain uses a proof-of-stake consensus mechanism – an Ouroboros protocol.
This mechanism also helps it to carry out several transactions in a very short time.
The scalability of the ecosystem refers to the number of transactions it can perform per time. For Cardano, there’s a significant amount of scalability, which allows it to perform hundreds of transactions per second.
The scalability of the Ethereum blockchain is relatively lower than that of the Cardano. As a result, Ethereum handles a lower volume of transactions than the ADA network. On average, Cardano performs about 250 transactions in one second.
Moreover, developers believe this figure is still extendable with some additional input.
High-quality end-to-end visualization and development
Developers in the Cardano community can simply create applications without the deployment of codes. So, in the external application development environment, they simply use a tool known as Plutus.
The benefit of Interoperability
The Cardano platform is accessible to anyone in the community due to its open design. As such, community members can get into the network to create new projects using the blockchain API.
These new projects come with an interesting function. That is the ability to connect with other blockchains such as Ethereum and Bitcoin.
What Is The Cardano Limited Supply? How Many Cardano Coins Are There For New Release?
At the time of this piece, the number of Cardano coins in circulation is 34.41 billion, according to information from CoinMarketCap. The total digital coins supply is 35.13 billion Ada tokens, with a maximum supply of 45 billion coins. From the data, only 9.87 billion ADAs remain in Cardano limited supply.
The maximum supply of the Ada token is giving it an edge in the crypto ecosystem. Once the participants exhaust the max supply, new coins cease to emerge, pushing the value up.
The cap also benefits the Cardano network regarding its features, ensuring their continuing utility. These features are decentralized finance (DeFi) applications, decentralized exchanges, and decentralized applications (DApps).
Do ADA Coins Have a Supply Limit?
CoinMarketCap data revealed that the circulating supply of Cardano in June 2021 was more than 31.94 billion tokens. This fact brought the token to the 12th position on the list of digital currencies, just under the likes of Shiba Inu, Dogecoin, Ripple Coin, and Bit Torrent.
But dissimilar to Ethereum and Dogecoin, Cardano comes with a limited supply. The maximum Cardano supply limit is 45 billion Ada tokens. More than two-thirds of this figure is currently the Cardano coins in circulation.
The high figure caps of the Cardano coin are necessary for mitigating probable inflation rates in the digital currency ecosystem. But the Cardano community can change this figure at any time.
In a 2018 AMA, Charles Hokinson discussed the relationship between the Cardano max supply and that of Bitcoin. According to his speech, the maximum supply of the tokens is just an exploration of decimals. He added that the figures have nothing to do with the price of the cryptocurrencies.
Cardano current price movement and price prediction by Margex
The Ada token is trading at $0.3279, depicting a 1.40% increase in 24-hours. Even with the large difference in price, experts believes that the Cardano blockchain has the potential to override Ethereum in the future. This might be due to its likelihood of becoming the major platform for smart contracts.
Here’s what the future price of the token might look like in the next three years, according to Margex.
Cardano price forecast in 2023
In 2023, the Cardano token price could hit a maximum of $2.97 and a minimum of $1.12. The average price could stand in the range of $1.98.
2024 Cardano Price Prediction
Throughout 2024, Cardano could remain around a peak price of $4.22 while having a support level of $2.07. Its expected average price might hover around $3.13.
Cardano Price Prediction in 2025
Margex, through some popular technical indicators, predicts the maximum price of Cardano in 2025 to be $1.40. The minimum and average prices could remain at $0.90 and $1.27, respectively.
Based on the analysis from Margex, the token will witness a significant drop in price in 2025. However, in the coming years, the coin is expected to pick up momentum, reaching up to $10.41 in 2030. At the time, the expected minimum price could be in the range of $8.08.
FAQ-Common Questions And Answers On Cardano Supply Cap.
Any crypto with a supply cap has a lower risk of over saturation. Find the answers to how many cardano coins are there?
Is Cardano token supply centralized?
Cardano (ADA) supply is not centralized. ADA is a decentralized proof-of-stake network that prides itself as a proof-of-work alternative. However, nearly half of ADA’s circulating supply is held by large wallets.
In 2020, the top 1.28% of all Cardano wallet addresses held more than 70% total supply of ADA.
How many Cardano coins can miners get daily?
The new epoch mines less ADA daily than the previous one (epoch 242), which produced 750 ADA. However, Cardano coins have a limit of 45 billion coins. The idea of maintaining the limit is to keep the coin available but avoid inflation, which may result from the excessive supply.
What is the mining process for ADA?
Mining ADA is impossible since Cardano is a proof-of-stake network. But you can stake the Ada coin by keeping it in your wallet and receive a percentage of your holdings as payment. You can also purchase ADA on crypto exchanges.
What is the primary use case of Cardano?
Cardano is an open-source network that hosts decentralized systems and applications. Its native cryptocurrency, ADA, facilitates the payment of services on the Cardano blockchain.