Cardano (ADA) Touches to Yearly Low: Entering Depression Phase?

Cardano (ADA) Touches to Yearly Low: Entering Depression Phase?

About Cardano

Currently priced at $0.24331 and witnessing a 2.79% drop over the last 24 hours, Cardano’s market capitalization stands at $8.53 billion. With a year-to-date drop of 1.23%, this third-generation blockchain, launched post Bitcoin and Ethereum, brands itself as a scalable, secure, and efficient decentralized application (dapp) platform. These dapps operate autonomously, eliminating the need for intermediaries, thanks to smart contracts which execute when specific conditions are met.

History of ADA

ADA, the native currency of Cardano, was introduced to the public in 2017, after an initial sale in 2015. Its initial public trading price was $0.02, which surged to an impressive $1.31 during the 2017 crypto bull run. However, by November 2018, ADA retraced back to its initial price.

Price Analysis

The prolonged crypto winter is battering altcoins, and Cardano seems to bear a significant brunt. ADA’s recent dip below $0.25, a level not seen since late December, raises concerns about further price depreciation. The coin’s last nosedive below this level came post the FTX collapse, a key event that led the larger crypto market into a new cycle low.

Following that, ADA experienced a brief rally, touching $0.40. But with bearish sentiments dominating, a similar rally seems unlikely now. A recent statement from ITC CEO Benjamin Cowen indicates that ADA could be entering a “depression phase” if it drops beneath $0.24.

The last time ADA experienced such lows was in 2020, where it hovered between $0.16 to $0.18 before gaining some traction. Currently, ADA is 92% below its all-time high of $3.09 from September 2021.

For perspective, Ethereum, often touted as inferior to ADA by enthusiasts, is only down 67% from its peak, and Binance’s BNB is performing relatively well despite global regulatory scrutiny. Another prediction from an analyst, “Crypto Ryan,” suggests ADA could potentially plummet to $0.13.

A Ray of Hope Amidst Bearishness

Even with the gloomy market trends, Cardano’s core developers at IOHK remain proactive. The company recently shared their development highlights, emphasizing the growing Cardano ecosystem. August saw the launch of two new projects, with twelve more underway. The total number of Cardano transactions grew by 1.6 million in August.

However, Cardano’s ecosystem value is pegged at $177 million, ranking it 16th as per DeFiLlama, even trailing behind newer chains like THORChain and Cronos.

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About Maria Morgan

Maria Morgan is a full-time cryptocurrency journalist at Coinography. She is graduate in Political Science and Journalism from London, her writing is centered around cryptocurrency news, regulation and policy-making across the glob.

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