In this article, we will discuss the Cardano coin, the price movement of ADA, and the possibility that the coin will survive or die. Cardano (ADA) is a Layer 1 blockchain founded by Charles Hoskinson.
He is also the co-founder of Ethereum (ETH) but left the project in pursuit of what he thought to be a scalable solution. While Cardano (ADA) remains a top-10 coin by market cap, the coin has struggled to find utility, technical or developer advantages over other cryptos.
KEY TAKEAWAY
- You will find out how the truth on how Cardano (ADA) is fairing
- You find out reasons why the coin is down
- The price movement of ADA
- The crypto market cycle and answers to some frequently asked questions on Cardano
Is Cardano dead? The truth about ADA
Pressure for Cardano to display its promised scalability has increased, and traders are becoming impatient with Hoskinson and his team. The crypto, which has far fewer use cases than ETH, has begun to reflect inadequacies in its price. Many investors think Cardano (ADA) is dead, but the jury is still out.
Why is Cardano Down?
The obvious reason the Cardano coin is down is, like all other cryptos, it follows the price of Bitcoin (BTC). Rising interest rates, foreign policy uncertainty, and reduced quantitative easing have weighed heavily on the cryptocurrency market and stock indices.
Cryptocurrency has largely moved along with the Nasdaq exchange, showing that the blockchain is viewed as a technology investment rather than (blockchain) a store of value.
It makes sense in some ways, as technology prices are based on future potential. Cryptocurrency is also based on speculation; only the strongly developed projects have strong use cases today.
Much like cash running from speculative technology stocks into value stocks, people see money run from speculative altcoins like ADA for cold, hard cash or more tangible investments.
As the liquidity rush continues, cryptocurrency investors/traders will likely sell their least useful holdings first. Financial analyst and cryptocurrency trader Zach Watson stated on Cardano that “the coin is ridiculously slow in transactions for each second, compared to other coins (cryptos). Compared to Solana at 65,000, it’s 250 TPS.
The team kept saying they were coming out with better enhancements, faster features, etc. Yet everything always gets delayed, so their actual product has not done anything yet.” According to some investors, this frustration has been shared among the cryptocurrency community; even the most loyal Cardano (crypto) holders are beginning to show frustration as the crypto touched just 40 cents this year.
This statement shouldn’t be enough to claim that Cardano is dead, but things need to change before the coin price can rise against its competitors again.
Cryptocurrency Market Cycle
Cryptocurrency markets undergo a lot of cycles. However, the infancy of the crypto market makes it difficult to understand the cycles cryptocurrency undertakes in comparison to stock indices like the S&P 500.
While the stock market performs poorly in summer compared to winter, no such links have been reliably traced in cryptocurrency. The stock market’s seasonality is what brought the phrases “sell in May and go away” for summer markets and “the Santa Claus rally” for winter markets.
An inability to predict the crypto market cycles has kept the market from earning nicknames. 2 market cycles have emerged. One is “cryptocurrency winter,” which acts much like a bear market for the stock market. Bitcoin (BTC) and all other altcoins face high selling pressure and lose much of their valuation. Like a bear market, cryptocurrency winter typically lasts months rather than years.
The other cycle that begins when the BTC price lulls or crashes is “altcoin season.” It is when altcoins like ETH, Solana, or Cardano rally in price compared to Bitcoin (BTC).
The first true altcoin season occurred in 2017 (late 2017) and early 2018. It is still unable to detect which cycle the market is in, but as BTC crashes and the altcoins tail behind, it feels like the former.
Cardano Price Movements
With all-time highs of almost $3, Cardano’s token ADA is roughly 50 cents. With ADA more than 80 percent (%) off its all-time high, the crypto still holds a market capitalization of over $17 billion, keeping it in the top 10 by token market cap. Just two slots below, at number 10, is Dogecoin, with an expectation of $11 billion market capitalization.
This comparison shows that hype and community can raise high valuations in cryptocurrency. Without technological advancement or real utility, these speculative tokens will be the first to drop.
With this recent price movement, it’s hard to blame traders for wondering whether Cardano (ADA) is dead, but the coin still has plenty of potentials to come back.
Conclusion
This sell-off is unlikely to be the last of the Cardano coin. While the team has underdelivered, the community is large, and Charles Hoskinson has proven to be a presence in the cryptocurrency space.
It will take many more cryptos to disappear before the Cardano crypto is in danger of extinction. That said, Terra became nearly worthless, and the crypto was above Cardano’s market cap just weeks prior. While the 2 tokens are different in purpose and technicality, this recent event showed that no crypto could truly be safe.
FAQS
Does Cardano have a future?
Many crypto experts predict the Cardano coin to have a bright future in 2022. With continued developments within the crypto ecosystem and in the cryptocurrency asset market, we may see the Cardano cryptocurrency reaching a new high. According to experts, the estimated price of the Cardano crypto (ADA) 2022 is USD5.
What will happen to Cardano in 2023?
Cardano. The crypto (Cardano) characteristics make it one of the best cryptos to buy in 2023. The cryptocurrency’s potential to survive vast macroeconomic problems and become a good investment option is one of the many characteristics that has attracted investors.
Will Cardano go back up in 2022?
After a drop in 2022, crypto experts suggest that the Cardano coin could offer value and a solid return on investment over the long term. However, crypto is volatile, and anything could happen. People should Never invest more than they can afford to lose.
What will Cardano be worth at the end of 2022?
Wallet Investor predicted that Cardano would drop further, to over $0.03, by the end of 2022 and for the coin to increase to about $0.05 by the end of the year 2023. DigitalCoinPrice, on the other hand, predicted an average forecast of $0.40 for 2022.
Can ADA reach 100 dollars?
If the crypto market condition improves and all the factors turn in favor of Cardano (ADA), people may see a surge in the price of Cardano. The surge needs to be huge for the coin to reach $100. Therefore, the price can reach $100, but the coin will have to rise around 10-50% a year to gain such a feat.
Why is ADA price so low?
The factor is that there exists 45 billion Cardano. So the relative price per share of ADA is low because the total supply is large.
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