Cardano native tokens could be more financially rewarding than most think, according to a recent analysis claiming they can create millionaires.
Cardano ($ADA) has not been performing very well for a while now, currently trading for $0.22 and down 32% this year. Amid suggestions that $ADA could recover with the broader market, an unpopular opinion suggests that Cardano native tokens (CNTs) could be a more rewarding bet.
Key Points
- Analysis claims that those who hold tokens based in the Cardano ecosystem are more likely to create wealth.
- Cuadrado noted that 100,000 $ADA in CNTs makes one closer to becoming a millionaire.
- He reasons that the biggest wealth transfers don’t happen with large crypto assets, but rather with those building around them.
CNT Holders Closer to Becoming Millionaires
Dr. Cuadrado, a Cardano research and risk analyst, claimed in a recent X post that CNTs could be the real deal amid the broader market uncertainty. According to him, those who hold tokens based in the Cardano ecosystem are more likely to create wealth. In fact, the analyst noted that they are closer to being millionaires than most people think.
He highlighted 100,000 $ADA worth of these assets as the magic number. Those who will invest in or have already bought this amount of CNTs could become rich, according to Cuadrado, who called his stance an “unpopular opinion.”
Meanwhile, he reasons that the biggest wealth transfers don’t happen with large crypto assets. They are already established, and their large market cap would somewhat limit how much they could grow in such a short time. That does not automatically make them unprofitable; it just means they will not benefit holders as much as smaller-cap tokens.
Cuadrado added that millionaires are created with assets built around these established cryptocurrencies. They act as a higher beta play, offering better portfolio upsides when the ecosystem they are building around gains momentum.
“Most people will understand that too late,” the analyst concluded.
The 100,000 $ADA Experiment
Notably, 100,000 $ADA has a dollar value of $22,400 at the current market price. At its 2021 peak and 2025 peak of $3.10 and $1.32, the same stash would be worth $310,000 and $132,000, respectively.
For this assessment, we will use Midnight ($NIGHT) and Word Mobile Token ($WMTX), the two largest CNTs in the current market. $NIGHT trades at $0.0039 with a market cap of $650 million. $WMTX is a multi-chain asset but is primarily native to Cardano. At the time of writing, it trades at $0.042 with a market cap of $36.3 million.
$22,400 will buy you 5.743 million $NIGHT tokens at the current market price. The stash would be worth $1 million if the privacy token reaches $0.174. That is a 44.6x rally from the market price today, taking its market cap to $2.88 billion.
On the other hand, $22,400 will buy 533,333 $WMTX. The token would need to reach a price of $1.875 for this stash to turn into $1 million, reflecting a market cap of $1.59 billion.
Meanwhile, $ADA would need to reach $10 to turn 100,000 $ADA into $1 million, taking its market cap to $360.2 billion. The analysis suggests it would be easier for $NIGHT and $WMTX to reach market caps of $2.88 billion and $1.59 billion than for $ADA to reach $360.20 billion when bullish momentum escalates.
Nonetheless, a 4,364% growth for both $NIGHT and $WMTX remains a huge upside ask. Additionally, while small-cap tokens generally outperform large caps, tokens tied to a network would also need the broader ecosystem to be bullish. This means that $ADA would need to be the first mover to spark an uptrend for tokens affiliated with it.
