Thousands of cryptocurrencies have sprouted up over the past few years. Beyond the major established ones like Bitcoin and Ethereum, there’s now a sea of would-be up-and-coming tokens vying for use and investors. Amid all of these options, it can be difficult to spot tomorrow’s more likely winners.
But there are a few younger tokens that have been catching my eye. And there is one in particular I would buy right now. It has been gaining momentum this year — and its leaders have plans for the future that offer the potential for major gains.
A winner in transaction speed
Ethereum co-founder Charles Hoskinson created Cardano (CRYPTO:ADA) back in 2015. The plan at the time was to build a blockchain with more scalability than the earlier players. So far, Cardano is showing its ability to handle more transactions quickly. It can process 250 transactions per second compared to only about 30 for Ethereum. Of course, Ethereum is set to roll out an upgrade net year that will increase its transactions per second to 100,000. But Cardano still may be ahead of the game in the long term when it comes to speed. It aims to be able to process 1 million transactions per second in the future.
Another positive point is the method of development used by this blockchain. Cardano doesn’t just launch updates or upgrades directly. First, any changes go through a process of peer review. This may slow rollout timelines a bit — but it also prevents glitches and other problems. So, in my opinion, improvements to Cardano’s system are worth the wait.
And speaking of its development timeline, the Cardano team has a detailed plan for what comes next. The roadmap includes five stages of development, and work is underway on the last two stages simultaneously. The final goal is to make Cardano a truly decentralized, self-sustaining blockchain.
Many real-world uses
When it comes to its real-world use cases, Cardano is much like Ethereum. It can run smart contracts, and therefore host decentralized applications. Cardano’s real-world uses are many. In agriculture, for instance, the blockchain can help track products from the farm to your dish. And in finance, it can streamline processes such as opening a bank account, because verified credentials can be stored on the blockchain for use when needed.
Cardano’s native cryptocurrency is called “ADA.” You can hold onto your ADA as an investment, or it can be used to send or receive funds. Not all cryptocurrencies have a supply limit, but ADA does — 45 billion tokens. This is positive because scarcity can drive up value.
Cardano is on track to end this year with a 600% gain. But there may be more growth to come as it moves ahead with its plans. It’s already the seventh-biggest cryptocurrency by market value. If it meets its development goals, the cryptocurrency could become even more significant, and its speed and real-world uses could keep it near the top of the charts. That’s why it’s the one cryptocurrency I would scoop up right now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.