The ongoing market downturn is still taking a significant toll on Cardano (ADA). As of press time, ADA has dropped 4.71% over the past 24 hours, mirroring the broader crypto market’s decline. It also shows a 30-day loss of 28.22% and a weekly dip of 4.47%.
Currently trading at $0.6419, ADA has declined 23.4% since the beginning of the year, making it one of the worst-performing assets among the top 10 cryptocurrencies by market cap. Despite this underperformance, investors remain optimistic that the token will rebound.
Several factors have been identified as potential drivers of Cardano’s growth, including increasing institutional interest in the token, as evidenced by Cardano ETF filings from Grayscale and Turtle Capital.
Cardano’s Correlation with Ethereum
Additionally, some community members believe that Cardano’s strong correlation with major assets like Ethereum could trigger a rally if those tokens experience significant price surges.
To put things into perspective, while Cardano has dropped 4.47% over the past week, Ethereum has dipped 4.38% in the same timeframe. Similarly, with Ethereum’s price soaring 43.26% over the past year, Cardano has seen more gains within this period, soaring nearly 75%.
This correlation has strengthened investor confidence that Cardano could experience a significant uptick if Ethereum undergoes a major rally.
Notably, Ethereum remains one of the best-performing cryptocurrencies this year, having reached a new all-time high alongside Bitcoin. Following Ethereum’s positive performance, market analyst Ted Pillows predicted that ETH could reach as high as $20,000 in this cycle, citing its potential to align with global money supply trends.
AI Predicts ADA Price If ETH Hits $20,000
To explore this possibility, we turned to the AI model ChatGPT to estimate ADA’s potential value if ETH reaches $20,000. The model first noted that Cardano’s current market capitalization of approximately $23 billion represents 4.9% of Ethereum’s $468 billion valuation.
Notably, a $20,000 price per ETH would raise Ethereum’s market cap to over $2.4 trillion. Based on this, ChatGPT projected ADA’s potential valuation under three different scenarios:
Conservative Scenario
In this scenario, ADA loses market share relative to Ethereum, dropping to 2% of Ethereum’s projected $2.4 trillion market cap. This would give Cardano a market cap of around $48 billion, resulting in a price of approximately $1.33 per token.
Baseline Scenario
Assuming ADA maintains its current 4.9% share of Ethereum’s market cap as ETH rises to $2.4 trillion, Cardano’s market cap would increase to about $117.6 billion. This translates to a token price of approximately $3.28, marking a new all-time high for ADA.
Bullish Scenario
In the most optimistic case, ChatGPT suggests ADA’s share of Ethereum’s market cap could rise to 10%, driven by ecosystem expansion and favorable market conditions. At this level, Cardano’s market cap would reach $240 billion, pushing the price to around $6.69 per token.
Ultimately, ChatGPT’s forecast illustrates that if Ethereum reaches $20,000, Cardano could experience substantial growth, potentially surpassing its previous highs, depending on how its market share evolves relative to Ethereum.