In the face of ongoing market turbulence, Cardano's ADA has marked a year-low price point.
In Brief
Currently, Cardano's ADA is trading at $0.244, having dropped 52.5% over the last year. Regulatory issues involving the SEC's classification of ADA as a security have led to a loss of more than 15% in its market value.
Bitcoin's price has remained fairly stable, though down 0.88% for the week and 12.7% for the month, now sitting at $25,666. Ethereum (ETH) has dipped by 1.73% in the last 24 hours, trailing behind Bitcoin's performance with a 2.24% decrease in the past week.
Valued at $0.244, Cardano's ADA cryptocurrency has achieved its lowest price in a year after hitting a recent low of $0.2413.
This downturn coincides with a significant decrease in DeFi activity on the Cardano blockchain, as evidenced by the plummeting transaction volumes.
A notable challenge for ADA comes from its designation as a security by the SEC, which is currently investigating Coinbase and Binance.
Despite assurances from Charles Hoskinson, founder of Cardano, and Input-Output Global (IOG), the parent company of Cardano, this regulatory scrutiny has negatively affected ADA's price, leading to a decline of over 15%.
In correlation with the drop in ADA's price, there's been a noticeable decline in DeFi activities on the Cardano network. Recent data shows that transaction volumes hit a yearly low on September 9, dropping to just $821,390, a staggering decrease from over $10 million recorded in late May and early June. Crypto Slate While Cardano's total value locked in DeFi remains relatively significant, having decreased slightly from 621 million tokens to 587 million, the overall slump in DeFi engagement alongside ADA's price issues emphasizes the hurdles the network is currently facing.
The cryptocurrency market is currently showing signs of a downturn. Bitcoin had a quiet weekend with little fluctuation, sitting at $25,666 after a 0.37% dip in the last 24 hours. Overall, Bitcoin has slid by 0.88% within the week and has seen a 12.7% drop over the month.
Bitcoin and Altcoins Are Down
Ethereum (ETH) experienced struggles over the weekend, remaining stable on Saturday before falling by more than 1.1% on Sunday, with its current value at $1,595—a 1.73% decrease in the last 24 hours. In the weekly scope, Ethereum is underperforming compared to Bitcoin at a 2.24% decline.
Solana (SOL), now valued at $17.77, is also trailing behind market trends, experiencing a 3.08% decline in the past day and an 8.7% drop weekly. This previously popular altcoin is facing challenges, particularly due to decreasing trading volumes and liquidity. A significant factor behind this downturn is FTX's strategy to liquidate $3.4 billion worth of cryptocurrencies including SOL.
At present, the total market capitalization for cryptocurrencies is around $1.02 trillion, slightly decreasing from $1.045 trillion noted just a week prior, reflecting a prevailing cautious sentiment amongst investors.
With profits in Cardano dwindling, investors are turning their attention towards Optimism and Domini as they seek new opportunities for gains.
Read more:
- The crypto community is buzzing as Cardano experiences a surge in trading volume, while DigiToads is positioned for a 1000% increase, having raised $7 million in their presale.
- Despite market challenges, Cardano's founder asserts that it is not merely a 'ghost chain', and the presale of DigiToads, nearing $7 million, defies prevailing market trends.
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Disclaimer
In line with the Trust Project guidelines Agne is a journalist dedicated to covering the latest trends and advancements in the metaverse, AI, and Web3 sectors for Metaverse Post. Her zeal for storytelling drives her to conduct numerous interviews with industry experts, always on the hunt for intriguing narratives. She holds a Bachelor’s degree in literature and has a rich background in writing on various topics like travel, art, and culture. Additionally, Agne has volunteered as an editor for an animal rights organization, where she worked to elevate awareness about animal welfare. Feel free to reach out to her.
