Morningstar predicts Cardano's entry into the top 3 of the cryptocurrency market

Amy Arnott, portfolio manager of one of the largest American rating agencies Morningstar, believes that Cardano (ADA) has a chance to enter the "big three" of the cryptocurrency market along with bitcoin and ether.

In a conversation with Business Insider, Arnott noted that the blockchain has many application scenarios that can attract the interest of institutional investors.
"Cardano is similar to Ethereum in the sense that this protocol has many potential applications. There is considerable enthusiasm around Cardano and various stablecoins."
So far, no cryptocurrency ETFs have been approved in the United States, so it is "very difficult for such investors to get access to cryptocurrencies," the analyst says.
"Over the past year, we have observed an interesting phenomenon when institutional investors have demonstrated a significantly higher willingness to accept cryptocurrencies and consider them as an investment asset. As this trend continues, we will see an increasing number of cryptocurrencies enter the mainstream."
Arnott believes that, despite the large growth in the past, the high volatility of the ether will make it unacceptable for many traditional investors.
"Regulatory risk is a big problem. It has become a factor of a significant increase in volatility in recent months. If the world authorities pursue cryptocurrencies in general or bitcoin and ether in particular, this will become a serious negative factor, " she warned.
Currently, ADA ranks fifth in the market after Tether and Binance Coin with a capitalization of $43 billion. The capitalization of the other two assets is $62 billion and $53.5 billion, respectively. Despite the recent pullback, the growth of the cryptocurrency since the beginning of the year is still 650%.

Cardano founder Charles Hoskinson believes that his project is being unfairly criticized for its slow progress towards supporting smart contracts. On Twitter, he promised that "the next two months will be fun" as the Alonzo hard fork is deployed. The completion of the implementation of smart contracts is expected in early September with the launch of the Alonzo Purple update.