Cardano (ADA) reached an all-time high price of $3.09 on September 2, 2021, as well as an all-time high market cap of $95 billion on the same date.

Cardano has a novel monetary expansion model, with a fixed rate of 0.3%, every five days, over the remaining tokens left to be put into circulation from the ‘reserve’, which effectively lowers the raw amount of ADA being added to the supply over time.

However, even with a controlled and diminishing monetary expansion rate, Cardano is still affected by its token’s inflation. Considering data retrieved by Finbold on August 29, with a circulating supply of around 35.04 billion ADA, one Cardano would be worth close to $2.71 — $0.38 (12.3%) less than its all-time high price in US dollars.

Cardano all-time high market cap. Source: CoinGecko
Cardano all-time high market cap. Source: CoinGecko

Meaning that Cardano constantly needs an increased demand, to meet historical prices with a previously lower supply.

Cardano price analysis

Meanwhile, ADA is trading at $0.26 at the time of publication, which would potentially offer the possibility for Cardano’s investors to gain 940% for purchases made at this moment, if the layer-1 blockchain ever meets previous demand.

ADA 1-day price chart. Source: Finbold
ADA 1-day price chart. Source: Finbold

Comparatively, the current price is -91.54% lower than the all-time high price.

Cardano supply inflation and treasury funding

Cardano’s staking validators and their staking delegators earn block rewards every five days (or every new ‘epoch’, which occurs every five days). These rewards are, like in most of the other blockchains, a combination of supply inflation (or monetary expansion) and transaction fees.

Also the supply inflation comes from the ‘reserves’, at a fixed rate of 0.3% per epoch from the total amount in the ‘reserves’, that is the difference between the total supply of 45 billion ADA, with the current circulating supply.

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With the circulating supply at the time of publication, there are around 9.96 billion as reserves, with a monetary expansion of 29.88 million ADA every five days. As more tokens start circulating, less impact Cardano’s supply inflation will have overall.

Interestingly, 20% of all the new ADA being put into circulation is sent directly to the team’s treasury, and only 80% is distributed to validators and delegators of this Proof-of-Stake system. This means that, currently, the treasury is receiving around 5.97 million ADA ($1.55 million) every five days.

How other cryptocurrencies would perform according to their all-time high market cap?

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Dennis is a business and financial writer, who had spent almost his entire life independently reporting on different business ventures with major impact on the US and global economy. Dennis places a special focus on examining tech stocks, biotech stocks all while investing a great part of his early hours to researching and writing on the companies in the US markets. Dennis has 15+ years of experience in financial markets.