The price of Cardano (ADA) is influenced by several key factors:
Ecosystem development: Cardano follows a phased evolution plan. Currently, the "Voltaire" era aims to introduce full on-chain governance, which could impact its price.
Staking dynamics: ADA uses a proof-of-stake (PoS) system, where holders can stake their tokens to secure the network and earn rewards. A high percentage of ADA in circulation is staked, which reduces the available supply.
Market sentiment: Like most cryptocurrencies, ADA is influenced by the overall market sentiment and Bitcoin's price action.
Adoption and partnerships: Real-world use cases and strategic partnerships with businesses or governments can drive its long-term value.
Liquidity and trading volume: A high trading volume indicates commercial interest and can affect price stability.
