Cardano is setting the bar for decentralized governance.
The Midnight sidechain could bring millions of users to Cardano's ecosystem.
Cardano says we'll see more big deals and partnerships soon.
10 stocks we like better than Cardano ›
Cardano (CRYPTO: ADA) is a proof-of-stake blockchain with a reputation for its carefully researched development. It's one of the cryptos that's been mentioned as part of the U.S. Digital Asset Stockpile. Plus, Grayscale, a leading crypto asset manager, has applied to create a spot Cardano ETF, which would further legitimize the asset.
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View Offer Powered by Money.com - Yahoo may earn commission from the links above. Unfortunately, Cardano has struggled to keep momentum in recent years. Critics say it's been overtaken by newer cryptocurrencies such as Solana.
That could change in the coming months. New developments could inject some much-needed energy into Cardano, making this a good time to buy. Here are three reasons why.
1. Cardano is solving its governance issues
Cardano's main man, Charles Hoskinson, admits (with the benefit of hindsight) that the whole project could have been better structured from the start. Without getting into Cardano's "dirty laundry," he said Cardano tripped over itself governance-wise, which has stopped it from getting stuff done. That includes things like getting listed on exchanges and accessing venture capital.
Hoskinson is particularly open about challenges in working with the Cardano Foundation. For example, in a livestream about what 2025 might hold, he said a 2021 deal to integrate Circle onto Cardano didn't get executed. He stressed the need for a different structure.
That's a work in process. In December, the community ratified a new constitution, which was subsequently approved on-chain and implemented. This marks a shift in power for the Cardano ecosystem and opens the way, for example, for the community to make budget decisions. A new constitutional committee will be elected this year, in another step toward decentralized governance.
2. The Midnight sidechain is due in November
Midnight is a Cardano sidechain -- which means it's a separate, yet connected, blockchain. Hoskinson said its November launch will be Cardano's "single biggest economic event." While Midnight can operate independently of Cardano, Hoskinson believes it, and other connected projects, could create billions of dollars worth of value for the Cardano ecosystem.
Midnight is focused on data protection. Apps built on Midnight can use both shielded and unshielded data, which will be fundamental for many real-world blockchain applications. Transactions that are recorded on public blockchains are pseudonymous. Given that several companies already specialize in linking blockchain addresses to people and companies, it's clear that pseudonymous is very different from anonymous.
Story ContinuesFor example, let's say stablecoin usage goes mainstream. Companies won't be keen to use the blockchain for payments if their transactions, such as big deals or salaries, could become public knowledge. Similarly, if real estate deals get tokenized on the blockchain, stakeholders need to control what's public and private.
The Cardano team is using Midnight as a key outreach tool. For example, in May, Input Output (one of the companies behind Cardano) announced a partnership with Brave Internet. It means Midnight, Cardano, and Cardano-native assets will all be integrated into Brave wallets. Hoskinson says this is one of many deals they've negotiated on the back of Midnight.
The Midnight airdrop reflects that same commitment to outreach. The plan is to reach 37 million addresses on Cardano and seven other ecosystems, including Ethereum and Solana. Hoskinson believes this will put a spotlight on Cardano and its technology.
Finally, Midnight facilitates interoperability -- cross-chain communication. In addition to developing Cardano's own Inter-Blockchain Communication capabilities, sidechains like Midnight enable cross-chain transactions. Hoskinson is particularly excited about the potential for a Bitcoin, Cardano, and Midnight triumvirate to solve various problems in the financial world.
A lot could happen between now and November
I've highlighted three shifts that could all be game changers for Cardano long-term. Cardano has always stood out as a safe pair of hands with a focus on real-world utility. Now could be a great opportunity to pick it up at over 75% less than its all-time high. If it can deliver even some of what's in the pipeline, Cardano could be on the cusp of something big.
That said, the very fact that some of these changes are necessary is concerning. Cryptocurrency is a fast-moving world, and few projects can afford to lose several years of integration opportunities because of internal issues. Plus, there's a chance Midnight may not deliver everything Hoskinson hopes. And the governance model is untested, which could bring its own bottlenecks.
Cardano is at an exciting crossroads, but it's still important to be cautious and ensure that crypto only makes up a small portion of your portfolio. All cryptocurrencies carry risk and uncertainty, more so when we're talking about projects that haven't yet launched.
Should you invest $1,000 in Cardano right now?
Before you buy stock in Cardano, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cardano wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $660,821!*Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $886,880!*
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Emma Newbery has positions in Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
3 Reasons to Buy Cardano Before November was originally published by The Motley Fool
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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AdaDog
· 5h ago
Don't deceive others into buying anymore, today is the highest price for this coin, it won't rise again.
3 Reasons to Buy Cardano Before November
Key Points
Cardano (CRYPTO: ADA) is a proof-of-stake blockchain with a reputation for its carefully researched development. It's one of the cryptos that's been mentioned as part of the U.S. Digital Asset Stockpile. Plus, Grayscale, a leading crypto asset manager, has applied to create a spot Cardano ETF, which would further legitimize the asset.
Advertisement: High Yield Savings Offers
Earn 4.10% APY** on balances of $5,000 or more
View Offer ### Earn up to 4.00% APY with Savings Pods
View Offer ### Earn up to 3.80% APY¹ & up to $300 Cash Bonus with Direct Deposit
View Offer Powered by Money.com - Yahoo may earn commission from the links above. Unfortunately, Cardano has struggled to keep momentum in recent years. Critics say it's been overtaken by newer cryptocurrencies such as Solana.
That could change in the coming months. New developments could inject some much-needed energy into Cardano, making this a good time to buy. Here are three reasons why.
1. Cardano is solving its governance issues
Cardano's main man, Charles Hoskinson, admits (with the benefit of hindsight) that the whole project could have been better structured from the start. Without getting into Cardano's "dirty laundry," he said Cardano tripped over itself governance-wise, which has stopped it from getting stuff done. That includes things like getting listed on exchanges and accessing venture capital.
Hoskinson is particularly open about challenges in working with the Cardano Foundation. For example, in a livestream about what 2025 might hold, he said a 2021 deal to integrate Circle onto Cardano didn't get executed. He stressed the need for a different structure.
That's a work in process. In December, the community ratified a new constitution, which was subsequently approved on-chain and implemented. This marks a shift in power for the Cardano ecosystem and opens the way, for example, for the community to make budget decisions. A new constitutional committee will be elected this year, in another step toward decentralized governance.
2. The Midnight sidechain is due in November
Midnight is a Cardano sidechain -- which means it's a separate, yet connected, blockchain. Hoskinson said its November launch will be Cardano's "single biggest economic event." While Midnight can operate independently of Cardano, Hoskinson believes it, and other connected projects, could create billions of dollars worth of value for the Cardano ecosystem.
Midnight is focused on data protection. Apps built on Midnight can use both shielded and unshielded data, which will be fundamental for many real-world blockchain applications. Transactions that are recorded on public blockchains are pseudonymous. Given that several companies already specialize in linking blockchain addresses to people and companies, it's clear that pseudonymous is very different from anonymous.
Story ContinuesFor example, let's say stablecoin usage goes mainstream. Companies won't be keen to use the blockchain for payments if their transactions, such as big deals or salaries, could become public knowledge. Similarly, if real estate deals get tokenized on the blockchain, stakeholders need to control what's public and private.
Image source: Getty Images. ## 3. Midnight is helping Cardano build relationships
The Cardano team is using Midnight as a key outreach tool. For example, in May, Input Output (one of the companies behind Cardano) announced a partnership with Brave Internet. It means Midnight, Cardano, and Cardano-native assets will all be integrated into Brave wallets. Hoskinson says this is one of many deals they've negotiated on the back of Midnight.
The Midnight airdrop reflects that same commitment to outreach. The plan is to reach 37 million addresses on Cardano and seven other ecosystems, including Ethereum and Solana. Hoskinson believes this will put a spotlight on Cardano and its technology.
Finally, Midnight facilitates interoperability -- cross-chain communication. In addition to developing Cardano's own Inter-Blockchain Communication capabilities, sidechains like Midnight enable cross-chain transactions. Hoskinson is particularly excited about the potential for a Bitcoin, Cardano, and Midnight triumvirate to solve various problems in the financial world.
A lot could happen between now and November
I've highlighted three shifts that could all be game changers for Cardano long-term. Cardano has always stood out as a safe pair of hands with a focus on real-world utility. Now could be a great opportunity to pick it up at over 75% less than its all-time high. If it can deliver even some of what's in the pipeline, Cardano could be on the cusp of something big.
That said, the very fact that some of these changes are necessary is concerning. Cryptocurrency is a fast-moving world, and few projects can afford to lose several years of integration opportunities because of internal issues. Plus, there's a chance Midnight may not deliver everything Hoskinson hopes. And the governance model is untested, which could bring its own bottlenecks.
Cardano is at an exciting crossroads, but it's still important to be cautious and ensure that crypto only makes up a small portion of your portfolio. All cryptocurrencies carry risk and uncertainty, more so when we're talking about projects that haven't yet launched.
Should you invest $1,000 in Cardano right now?
Before you buy stock in Cardano, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cardano wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $886,880!*
Now, it’s worth noting Stock Advisor’s total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Emma Newbery has positions in Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
3 Reasons to Buy Cardano Before November was originally published by The Motley Fool
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