Largest proof-of-stake network sees its token in multi-week painful decline
ADA, a core native asset of the latest Cardano smart contract platform, hit $ 1.5 during its multi-month freefall. Here’s what causes her to drop 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.
At the same time, its activation failed to catalyze another surge in ADA prices: the asset entered a multi-week “bear market”. On November 26, 2021, it hit its lowest level since August 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.
In terms of short-term bearish catalysts, the most obvious is the delisting of Cardano’s ADA by eToro, a mainstream derivatives trading platform. eToro has banned its US clients from opening positions in ADA and Tron’s Tronics (TRX) from December 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, Hoskinson is confident that 2022 will be a great year for his ecosystem. Speaking of his roadmap for the coming year, he called it a “living ecosystem”.
He calls Cardano’s technology unbelievable and claims it is able to fuel “thousands” of products by “so many great innovations.”
