Cardano’s value has plummeted yet again as the turmoil continues into May. On May 19, ADA hit a new low of $0.507(R8.03), a drop of approximately 10%.
Cardano, like the rest of the crypto market, suffered during the Terra debacle. Cardano fell to $0.47(R7.44) on May 12, the lowest level since February 2nd. Despite the confirmation of the Vasil hard fork, the recovery has been difficult. As founder Charles Hoskinson confirmed, the Hard fork will vastly improve the network’s performance.
According to a CryptoCompare Report, the number of addresses holding ADA increased by 2.99 % last month to 5.2 million, thanks in part to an increase in token holders from 529,000 in March to 679,000 in April, as well as a rise in cruisers from 3.84 million to 4.14 million.
On the fateful day of May 12, whale transactions reached their peak at the end of January 2022. Whale transactions (over $100,000(R 1.6M) peaked at 1450 but were unable to maintain momentum due to market volatility.
Whale activity appeared to indicate a ‘buy the dip’ trend that has since slowed, raising concerns about the Cardano ecosystem.
According to Gfinity Esports, the average hold time for Cardano holders is longer than that of other top-ranking crypto-assets.
This factor is emphasized further by Cardano’s current 0.7 MVRV value, which indicates an accumulation trend. While whale accumulation is still a concern for the ecosystem, there is hope that it will increase around the Vasil hard fork.
The Cardano community is getting a mixed bag of news today. There are a lot of expectations surrounding the upcoming hard fork in terms of network performance and price predictions. For the time being, Cardano needs to get out of this slump quickly.
It should also be noted that Cardano investors have lost faith in the price action of ADA. Especially after the Terra crash shook the crypto market.
The crypto industry has lost more than $1 trillion(R15.8TN) in the last six months, as macroeconomic headwinds have weakened crypto assets.
Indeed, SEC Chairman Gary Gensler of the United States issued a warning to crypto markets when he told reporters,
“I think a lot of these tokens will fail. I fear that in crypto…there’s going to be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets writ large.
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