Cardano has been down since ADA reached an all-time high of $3.10 in September 2021. At the time of writing, the ninth major cryptocurrency is down 5% over the past seven days. By comparison, major cryptocurrencies like Ethereum lost more than 4.5% and Bitcoin lost 2% in the same time period.
However, CoinMarketCap shows an increase in trade volume from $221,898,095 to $277,239,103, which is an increase of more than 25%.
However, as the price of ADA continues to fall, this could be the start of something else for Cardano.
Macroeconomics at stake
In response to persistently strong inflation in the United States, the Federal Reserve had to raise interest rates by 50 basis points, taking them from 4.25% to 4.50%.
Even though inflation has been prevented from fully exploding since the Fed’s previous rate hikes, they are still intent on raising interest rates to 5%, which could be a problem for Cardano investors.
Total ADA Market Capitalization at $9.8 Billion | Chart: TradingView.com
Since the central bank’s interest rate hike, the ADA price has breached the support level of $0.3; however, it failed to sustain momentum and is now trading at $0.28. This significant price drop suggests that the rumored Ethereum killer might be losing its aggressiveness.
Cardano’s TVL is just $71.05 million, compared to Ethereum’s $23.4 billion. Additionally, NFT sales in the ecosystem have declined, putting additional downward pressure on the ADA price.
On optimism and following the right path
Despite the confluence of these events, Cardano leaders remain optimistic about the future.
Jerry Fragiskatos, Chief Commercial Officer at Input Output Global, stated in an interview with crypto influencer Scott Merkel that he believes Cardano is on the right path.
“I think time will tell, and I think we are taking the right approach,” he said.
Furthermore, he compared the dire state of the ecosystem to the corporations that survived the dotcom bubble. This comment ties into the analogies between the demise of FTX and the dotcom era of the early 2000s.
He also discussed the way ADA tokens are distributed to investors, highlighting the fact that there are few whales and insiders in the ecosystem.
As Fragiskatos said, only time will tell if ADA survives the current bear market.
This post ADA price down 5% last week, even as trading volume increases
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