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Cardano (ADA) Down 50% from Peak: Possible Reasons

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Sat, 11/27/2021 - 15:00
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Vladislav Sopov
Largest proof-of-stake network sees its token in multi-week painful decline
Cardano (ADA) Down 50% from Peak: Possible Reasons
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ADA, a core native asset of the newest smart contracts platform Cardano, touched $1.5 in its multi-month freefall. Here's what makes it plummet before gaining 200% in five weeks.

ADA loses 50% since early September

On Sept. 2, 2021, the ADA price reached its all-time high at $3.10 on the eve of the activation of its smart contract functionality. This major upgrade went live as a result of Alonzo hard-fork mainnet activation in mid-September.

Cardano (ADA) price loses 50%, here's why
Image by Binance

At the same time, its activation failed to catalyze another wave of ADA price rally: the asset entered a multi-week "bear market." On Nov. 26, 2021, it reached the lowest level since Aug. 9.

The most obvious mid-term catalyst is the criticism of Cardano's smart contracts performance. As covered by U.Today previously, the viability, speed and functionality of this system were attacked by both Ethereum (ETH) and Bitcoin (BTC) maximalists.

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Cardano Is a “Weird Cult,” Says Billionaire Mike Novogratz

In terms of short-term bearish catalysts, the most obvious one is the delisting of Cardano's ADA by eToro, a mainstream derivatives trading platform. eToro restricted its U.S. customers from opening positions in ADA and Tron's Tronics (TRX) from Dec. 26, 2021.

Will ADA see another rally in 2022?

Cardano's inventor, Charles Hoskinson, has already slammed eToro's decision and attributed it to the lack of a global regulatory standard in the sphere of crypto and blockchain.

As U.Today reported earlier, Mr. Hoskinson is certain that 2022 will be a splendid year for his ecosystem. Speaking about its roadmap for the coming year, he called it a "living ecosystem."

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IOHK's Charles Hoskinson Teases Cardano 2022 Roadmap Release

He calls Cardano's technology unbelievable and claims it is able to fuel "thousands" of products by "so many great innovations."

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)