Having been a Cardano Bull since Dec 13, 2017 I’ve been following it’s development pretty closely ever since. I’ve had IOHK CEO Charles Hoskinson on my Youtube Channel several times as well.
One of the big questions related to Cardano is whether it will become the one true Ethereum killer. With ETH’s bottlenecking, insanely high transfer fees and slow network and other issues and limitations, I firmly believe Cardano will overtake Ethereum at some point.
Without getting into the technical side of Cardano, lets look at the possible earning potential of ADA post market cycle peak and get an idea as to what may be possible.
There are many that picked up ADA when it was as low a 2 cents which is fantastic! I’m going to go over 3 different potential options for earning passively with Cardano staking.
Now, we all know the crypto market moves in cycles of approx 2 years bull and 2 years bear. We are currently in what I believe is the year of the market peak to conclude this cycle in 2021 and into 2022. In the last market cycle, Bitcoin rose 1,600% before coming down 85% and the alt coin market follow suit. However, the previous cycles were missing one key component and that was large institutional money which we know we now have entering the space every day.
Most of the institutions are buying up Bitcoin primarily with some Alt coin exposure and they are doing so as long term holds or a hedge against the deflation of the US Dollar. The FED has printed something close to or above 20% of the total US Dollars in circulation in 2020 alone! A strong debasement of the value which is pushing more people into blockchain technology with larger bank accounts. The future is happening right now.
The question here is, as retail investors continue to trickle in, where is their money going, why and how many will be exiting their positions at the peak of this market? I believe that unlike previous market cycles where institutions weren’t really in the space, this time, they are and they are in it for keeps. They are ultimately lowering the available supply for retail investors to pump the prices even harder, even with their $100 or $1,000 investments en’mass. When the market peaks, I believe the sell off won’t be quite as drastic as past cycles because Institutions are likely to buy up and further accumulate what the retail investors or (Dumb money) dump out of fear, corrections etc.
So, as a Cardano holder, let’s take a look at a potential scenario for passive income streams post bull market.
Cardano Earnings Calculator
#1. Whale Staker – 1 Million ADA Delegated To A Staking Node (Such as CROW or CROW2)
If you were to delegate 1,000,000 ADA to a staking node, you would generate approx 5.14% ADA per year as a passive reward.
That equals 51,402 ADA annually. Let’s say ADA peaks at around $8 by the height of the bull cycle and then drops 75%, that would leave ADA at around $2 each.
You would make approx $102,804 per year in passive income to ride out the next bear market cycle, or $8,567 per month.
#2. Shark Staker – 500,000 ADA Delegated
25,701 ADA Annual Reward or $51,402 per year or $4,283 per month.
#3. ADA Lover – 100,000 ADA Delegated
5,140 ADA per Year – $10,280 Annually or $856 per month.
Now, this is all of course calculated based on a $2 ADA price at the conclusion of the bull cycle. It could be lower or higher. It simply depends on Cardano’s use post Goguen and speculative interest. How many believe Cardano will hit $35 or more by 2025 and dont want to risk losing what they have to future institutional plays or even future whales gobbling up the ADA like a bunch of Hungry Hippos?
To take this to another level, it will be likely that many new DEFI Dapps will launch on Cardano which will give even more passive earning potential with ones ADA. This means, delegating ADA to a node could generate resources to further invest into various DEFI apps over the bear market and earn potential gains that may rival the potential gains of selling your ADA at the top in hopes of buying it back cheaper in the bear market.
One final note to that is, how long have you held your ADA? If you CROW YOUR COINS longer that a year, you reduce your capital gains in the USA quite a bit. So, depending on when you bought your ADA, it may also prove more beneficial to hold them through the next bear market, earning rewards along the way and potentially learning about the Cardano based DEFI markets for further earning potential.