The lowest ADA value was 0.02 USD in the previous bear market. ADA got to this low value a few times from 2018 to 2020. In the summer of 2020, Cardano transited the PoS consensus. In the current bear market, the lowest ADA was around 0.24 USD. This is 10 times higher than in the last bear market. After the switch to PoS, Cardano’s security grows along with the value of ADA coins. The ADA value is only one component of protocol security. Another critical factor is the distribution of ADA coins among users and the incentive model that motivates coin holders to stake coins. Cardano is doing 10 times better in its second bear market than it did in the last one. Of course, we don’t know if the bear market is over, but in the context of the article, let’s quietly assume it is. Let’s take a look at how secure Cardano is, what other factors security depends on, and how it could evolve in future years.
TLDR
- The budget for network security must be high even in the riskiest bear market period.
- The minimum cost of an attack on Cardano is 3 billion USD. Realistically, however, tens of billions of USD.
- The attacker’s demand for ADA will increase the market value and thus make the attack more expensive.
- It cannot be said unequivocally that the value of ADA is dependent on the value of BTC. Rather, the blockchain sector follows the value of the index of technology companies.
- Cardano is the more secure the more ADA stakers there are.
- In order to maintain security, Cardano needs an increasing number of new users.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: https://cexplorer.io/article/the-ada-low-is-10x-higher-than-in-the-previous-bear-market