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Cardano (ADA) is navigating through the current bearish market climate, somewhat mirroring the path that Ethereum (ETH) charted in the 2020 bear cycle. This observation could herald a positive turn for the ADA token if history indeed decides to repeat itself.
Throughout the previous bear market, Bitcoin dominance increased from approximately 35% to a whopping 73%, largely as a result of the market's flight to the perceived safety of the crypto heavyweight. However, in the last 25 months, the dominance of Bitcoin has only risen from about 39% to 49%, revealing a different pattern this time. This seems to indicate a shift in the crypto landscape, leaning toward a multi-chain future where several blockchains coexist and thrive simultaneously.
It’s true that Ethereum dominance has impressively remained at 20% this bear market and there’s certainly a story there, so congrats to them. ADA is just doing what ETH did too last bear market (before truly establishing itself 2021-22) and is still well above the 2020 lows pic.twitter.com/huZCfo76GA
— ADA whale (@cardano_whale) June 19, 2023
Amid this shift, Ethereum's share of the total market cap impressively retained its position at about 20%, even throughout the bearish market cycle. As Ethereum solidified its standing during the 2020 bear market, Cardano's current performance seems to be following a similar path.
ADA's price, currently at $0.25, has experienced a 31% drop over the last two weeks. Despite this, the token has managed to stay well above 2020 lows, demonstrating resilience in the face of an overall bearish market. This is akin to what Ethereum did during the 2020 bear market before its impressive run in 2021-22.
It is noteworthy that Cardano's path is not necessarily a guarantee of success, but a sign of the potential for ADA. Ethereum had to navigate through a series of trials and tribulations before it could solidify its position on the market. Similarly, Cardano will need to confront its challenges and deliver on its promises to reach the same level.
Vladislav Sopov