Once the most hyped and anticipated project, Cardano is probably the most disappointing asset in the crypto space right now. Not only has it managed to lose all of its gained value at this point, but over 91% of its investors are also suffering horrendous losses.
$1 far behind
Cardano’s price was influenced more by space developments than by broader market cues. Charles Hoskinson and the Cardano community made the project so popular that it looked like Cardano would revolutionize the industry.
Unfortunately, once the smart contracts were released on the network, the hype died down.
The collapse that followed was nothing short of a catastrophe from an investor’s point of view. After reaching the highs of $2.9, ADA started to decline. It stopped around the $1 level for a while and consolidated around $1.01 – $1.06, this is when people started calling it a stablecoin, but even that humor was short-lived.
Today, after a week of straight red candles, the altcoin fell to $0.836. The last time Cardano was in this price range was in February 2021.
However, other than price, nothing about the network is comparable in the two periods. In February 2021, the “rally” made a profit about 94% of its investors, and only 1.04% of the investors lost. Today, 91% of investors are making a loss, while only 7% are still making a profit.
Second, most of the traded supply at the time was profitable, with volumes regularly hitting the 1 million ADA. Today, over 60k ADA are regularly in losses.
In addition, and certainly one of the main driving forces of the market, investor sentiment, which was euphoric around this time last year, is absolutely disappointing right now.
The ‘winning’ factor
The only winning factor it has is the 73% medium-term holders who have HODLing since February 2021. These investors help Cardano avoid a free fall into the abyss.
Simply put, Cardano is currently dying as an investment vehicle with no alluring value due to the rise of competing assets and chains like Solana and Terra.
Not only do they lead the DeFi space as one of the top 10 chains with nearly 200 protocols combined, but their emergence as an asset makes them a better choice.
This post 263% rally no more – This is what Cardano is going back to now
was published first on https://ambcrypto.com/263-rally-no-more-heres-where-cardano-is-heading-back-to-now/