Sports NFTs Are an Exciting Opportunity for Cardano as It Grows
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cardano has continued to add new features to its blockchain and is forming partnerships that will entice new supporters to...
One issue with writing about cryptocurrencies is that investors have a voracious appetite for crypto news. That can be hard to find something that hasn’t already been said. I suppose that’s why I might prefer Cardano (CCC:ADA-USD) more than some other altcoins.
For the most part, most crypto tokens correspond to just one blockchain. That means that use cases are extremely important to consider. And if you’ve read my takes on cryptocurrencies then you know I’m more of a fan of the underlying use cases than I am of any individual coin.
In marketing terms it’s called creating a value beyond price. I’ve mentioned before that XRP and XLM, the coins for Ripple (CCC:XRP-USD) and Stellar Lumens (CCC:XLM-USD) respectively, make sense to me because of the way each addresses cross-border transactions.
This helps me appreciate the bullish case for ADA. The underlying blockchain gives investors something other than price to consider.
Cardano Is Not a Finished Product
The fundamental premise of Cardano has been that the way its network is being built will make it a viable contender to displace Ethereum (CCC:ETH-USD) as king of the utility crypto universe. And like clockwork, Cardano’s ADA coin got a nice lift recently when the company launched its Alonzo hard fork. Alonzo is the latest toll gate that Cardano has crossed on its way to fully building out its blockchain.
Cardano is launching in five phases. The launch of the Alonzo hard fork completes the Goguen phase and enables smart contracts. This leaves two more phases covering scalability and governance before the network officially launches.
In a prior article, I referenced the fact that in a “move fast and break things” world, this methodical approach appears to be a solid, if not counterintuitive, approach. Cardano is attempting to get it right, more than get it first.
Competing in the Esports Arena
Ok, so far I’ve told you something you already know. Here’s something you may not.
One of the latest reasons to give Cardano a close look is its embrace of the sports market in general. Specifically, the esports market. Recently, Cardano announced a partnership with Rival, a growing player in the esports and gaming sector. This partnership will provide ways to “create and distribute NFTs, the redemption of NFTs for physical goods, and marketplace-based royalties within the Rival platform.”
The significance of this is that companies, like Rival, are lining up their own client rosters. In the case of Rival, the roster includes the Seattle Seahawks, the Detroit Pistons, and two football clubs from the English Premier League (Aston Villa and Watford). The company allows fans to connect with their favorite team and other fans through competitive gaming.
This is part of the “crypto crossover” that got even more momentum as the NFL is beginning to make moves into the NFT market through a partnership with Flow blockchain.
And all of this puts Cardano firmly in the wheelhouse of its coveted demographic: young, upwardly mobile professionals who are buying into crypto in a big way. These are also the people who are more likely to engage in mobile gaming. While that’s not necessarily a market for Cardano yet, it could be in the future.
Should You Buy the Cardano Hype?
That’s why investors in Cardano shouldn’t get hung up on its present market cap. Rather, I believe that Cardano needs to stick to what it does well. If it does, the rest will take care of itself.
The altcoin universe is diverse to say the least. It has to be due to the decentralized nature of the underlying blockchain technology. This makes a blockchain’s ability to attract developers critical. And that appears to be where Cardano stands out.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.
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