Crypto
Cardano (ADA): Price Curve recovers, but Momentum Remains Absent
Cardano is still just among the ten most capitalized global cryptocurrencies, but Avalanche (AVAX) is in attack mode and could soon displace ADA from this prestigious table. A good 63 percent of all ADA are deposited for staking, and for AVAX it is 58 percent. Through staking, investors can earn interest with crypto, which only pays off if the value of the cryptocurrency used increases.
Cardano (ADA) is trading above $0.70 for the first time in 22 months. But the all-time high of just over $3 is still miles away. Can Cardano turn the tide and start its own rally?
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In 2021, many still believed Cardano (ADA) would be in the top five in the cryptocurrency competition
But the optimism has long since been dampened, the Cardano ecosystem lacks convincing applications for ADA. This week is a glimmer of hope for investors, as Cardano has broken the $0.70 mark and is trading at a level not seen since May 2022.
However, if you go into the analysis, the price gains for ADA seem to be mainly due to the general upward trend in the crypto markets. According to DeFiLlama , Cardano remains an outsider in the important area of decentralized finance with almost $600 million in invested capital. Blockchain data also shows that more than 40 percent of all ADA investors are still in the red. At its best, Cardano set an all-time high of just over $3 in the summer of 2021.
Analysts note that Cardano has reached an annual high of almost 600,000 in the indicator of monthly active wallets. However, if you break this point down from a daily perspective, like here , it is an up and down without a clear trend. It often seems to be large investors (whales) who take action when the price of ADA fluctuates. Around a third of Cardano’s huge market capitalization of currently $25 billion is held by this group of investors.
Conclusion: Cardano without real impulses, search for meaning for ADA
Cardano is still just among the ten most capitalized global cryptocurrencies, but Avalanche (AVAX) is in attack mode and could soon displace ADA from this prestigious table. A good 63 percent of all ADA are deposited for staking, and for AVAX it is 58 percent. Through staking, investors can earn interest with crypto, which only pays off if the value of the cryptocurrency used increases.
In active ecosystems such as Ethereum (ETH) or Binance Coin (BNB), the staking quota is below 30 percent because attractive alternatives are offered there with DeFi, blockchain gaming and other fields of application. These altcoins are already measuring themselves against previous all-time highs – but Cardano is far away from that at 76 percent. Cardano boss Charles Hoskinson regularly makes it into the crypto headlines . But even Hoskinson cannot convincingly answer the question of what ADA is good for in practice.
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(Featured image by Michael Förtsch via Unsplash)
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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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