Cardano’s promise to be ‘The DeFi Chain’ is nothing new under the sun, but this promise may not be fulfilled anytime soon. Now, while the Cardano community is busy trying their luck at the DeFi game, Cardano seems to be losing its long-term loyal investors.
Cardano and long-term holders
Cardano’s investors have been very loyal to their token, much more so than the investors of SHIB and DOGE. These investors have not left the market for a moment, despite the ongoing price drops and crashes.
This is because their confidence in Cardano as a blockchain is much stronger than the prevailing market conditions.
These folks stood the test of time as ADA crashed more than 47% off the charts, adding to its continued downward trend since September 2021. Its all-time high of $3,160 has since fallen more than 84.3%.
This has caused the investors to move their assets in losses since early January 2022, impacting billions of ADA in the chain.
As a result, Cardano’s MVRV fell to -4.6, its lowest level in 24 months (since April 2020). It clearly states that the token is currently undervalued.
Angry at the crypto market, some ADA holders even chose to sell. Longtime holders, usually considered any cryptocurrency’s best friend, panicked and sold some of their ADA tokens, eventually destroying $1.27 trillion in one day on May 3.
However, Cardano as a blockchain paid no heed to it and remained unhampered by the panic selling as the focus is on expanding the space.
For the same reason, the recently approved Fund 8 to fund 367 proposals was voted on, bringing the total number of projects funded by Project Catalyst to over 1,000.
The network already has more than 20 DEXes and Liquidity protocols, as well as hundreds of other apps that come from various branches of the crypto space.
This would be a huge boost for Cardano as the network currently only has $141.5 million on the chain. Now, when that changes for the better, the current situation is expected to improve as a result.
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