Cardano (ADA) is navigating the present bear market environment in a manner that resembles Ethereum’s (ETH) journey during the 2020 decline cycle. If history does decide to repeat itself, this insight may portend good news for the ADA token.
Because of the market’s flight to the dominant cryptocurrency’s perceived safety during the last bear market, Bitcoin’s dominance rose from about 35% to a staggering 73%. The dominance of Bitcoin has only increased from around 39% to 49% over the past 25 months, indicating a distinct pattern this time. This appears to signal a change in the cryptocurrency environment, pointing towards a multi-chain future in which several blockchains coexist and prosper at the same time.
Despite this change, Ethereum’s market cap share amazingly remained constant at 20% during the dismal market cycle. Cardano’s current performance appears to be following a similar route to how Ethereum secured its position during the 2020 bear market.
The price of ADA, which is presently $0.25, has decreased by 31% during the past two weeks. Despite this, the token has maintained a significant distance above the lows of 2020, displaying fortitude in the face of a generally pessimistic market. This is comparable to what Ethereum accomplished in the bad market of 2020 before its spectacular surge in 2021–2022.
It is important to note that Cardano’s journey is not always an indication of ADA’s success but rather a sign of its potential. Before Ethereum could establish its place on the market, it had to overcome a number of obstacles. Similar to how Bitcoin must face its obstacles and fulfil its commitments, Cardano must do the same.
