2022-6-16 21:45 |
The ongoing crypto winter has thrust Bitcoin, Ethereum, Cardano, and most cryptocurrencies into an excruciating downtrend for the last six or so months with most coins losing more than half their value.
Last month, the global cryptocurrency market cap was down to $1.4T which was a far cry from November highs of $2.9 trillion. As of writing, the total market valuation has plunged further to $890 billion according to data from CoinGecko. However, attempts to stabilize prices remains repressed by continued geopolitical qualms, a blurred fight against ballooning inflation figure as well as regulatory uncertainties.
That said, amidst all the chaos, Cardano (ADA) seems to have decoupled from the general market weakness, signaling it could be prepping for an enormous recovery. Since tapping an all-time high of $3 the last fall, Cardano which is the seventh-largest cryptocurrency with a market cap of $15.9 billion retraced about 86.31% to $0.40 in May 2022.
However, despite the bloody sell-off, ADA’s strength seems to have kicked in and the cryptocurrency now threatening to forerun other assets in recovering. Whereas price has experienced remarkable upshots due to events such as the network upgrade, of late, investors have been experiencing some of the most sustained price surges in months over the past two weeks, signaling the local bottom may be here.
Apart from technical factors, pundits are counting heavily on Cardano’s fundamentals which they believe will be the catalyst for the next big Bull Run. According to Dan Gambardello, founder of “Crypto Capital Venture (CCV),” one of the biggest selling points for the Ethereum killer is that “it is not broken like other protocols.” The pundit foresees ADA hitting $10 “a lot sooner than most think.”
Security, low transaction costs as well as a great environment for builders have seen the number of projects being built on Cardano surge remarkably.
Currently, more than 1000 projects are building on Cardano with the largest share being Non-Fungible Token (NFT) collections. Other projects include stablecoins, lending protocols, startup incubators, DeFi protocols, and Decentralized Exchanges (DEXs) among others. The number of ADA wallets has also surged past 3.5 million, inching closer to Solana’s.
The upcoming Vasil hardfork which is expected to bring “massive performance improvement” to the network according to Cardano’s founder Charles Hoskinson could also be a primer to ADA’s price recovery. Earlier last week, the ADA developers delivered a Plutus compatible node alongside a new Node release for Vasil as part of the final testing process before the upgrade. The Vasil upgrade is expected to happen later in the month.
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