Cardano (ADA) Goes 59% Lower than Its All-Time High; Sees Interest Sink
Since reaching its all-time high of $3.10, Cardano is down 59%, according to Santiment data. ADA is trading at $0.9507, a 6.14% fall over the last 24 hours. Currently, more than 67 percent of ADA holders are underwater. Meanwhile, 25% of Cardano investors prosper, and 9% are near the breakeven mark.
Cardano Goes on a Bearish Phase
The amount of time the token has been kept is a related measure. The vast majority, or 76% of ADA holders, have had it for one to twelve months. Only 11% of Cardano investors have kept the token for more than a year, and they are the only ones who are still profiting.
Technically, ADA has turned bearish and may soon return to its 2022 annual low point of roughly $0.80, which happened in mid-March. Unless they sell at a loss, this will push even more investors into the red.
“However, the asset’s top whales (holding 10M+ $ADA) have returned to their largest percentage of supply held in two years, at 46.6%. Note that a large portion of these addresses are owned by exchanges,” Santiment added.
The price decline is primarily due to the network not living up to expectations following the launch of smart contracts. According to DefiLlama, there are only ten decentralized finance protocols on the network with a combined value of around $233 million.
Basho Phase is Coming Soon
Charles Hoskinson, the co-founder of Cardano, said that many Cardano dApps are still waiting for the launch of the Vasil hard fork in June. During the next phase of the upgrade, Cardano will improve its scalability and smart contracts.
To improve the scalability of Cardano, Basho will add sidechains to the blockchain. These new chains will help alleviate the pressure on the main chain. It is not too different from the upcoming upgrade of Ethereum, which will allow developers to test various features. Sidechains will also reduce the risk of running the main chain.
In the future, Cardano will allow users to switch between accounts with different features using Basho. Currently, the only way to do this is to use the UTXO wallet. With the new version of Basho, users will also be able to switch between accounts.
Cardano Still has a Chance
Cardano is currently in a strong position due to its various fundamentals. One of these is the robust network demand. It was driven by the launch of the SundaeSwap decentralized exchange. SundaeSwap is a decentralized platform that allows users to exchange their native token and ADA on the Cardano Network. Through SundaeSwap, users can easily swap, stake, and borrow assets decentralized. It has a simple user interface and is ideal for anyone.
According to Santiment, in 2021, Cardano was the most developed project on GitHub. This week, NFT bonds were unveiled, further strengthening the network’s investment potential. More investors will likely become trapped in the debt if the current selloff continues. Fears that the ADA will hit its yearly low of $0.80 might also cause more people to sell.
The Rest of the Crypto Market
Today, cryptocurrency prices plummeted, with altcoins like Avalanche plunging more than Bitcoin. The world’s most significant digital token fell more than 6% to $39,416 yesterday, marking the first time the largest cryptocurrency by market capitalization has fallen below $40,000 since March 16. However, the crypto has recovered and is trading at $40,182.99 today.
The second most valuable cryptocurrency by market value, Ether, is trading at $3,026.83, dropping 4%. Dogecoin and Shiba Inu are down over 10%, while other tokens like Avalanche, Solana, Terra, and XRP were down 6-11% in the past 24 hours. CoinMarketCap data shows that the global cryptocurrency market worth has decreased 4.15% to $1.86T.
