It is clear that Cardano (ADA) is facing a challenging period, but there’s a mixture of pessimism and optimism among analysts and investors. The phrase “is Cardano dead” reflects the concern in the cryptocurrency community due to ADA’s falling values in recent months. However, various factors suggest that the blockchain has fundamental strengths that could lead to its recovery. Here’s a detailed discussion encapsulating various aspects.
Table of contents
Cardano’s Recent Performance
Cardano’s price has struggled, losing about 15% over the past month, with ADA’s price dropping to $0.25 and its position as a top 10 cryptocurrency by market cap becoming precarious. The bearish trend that began in 2022 has led to a depletion of more than $80 billion in ADA’s market capitalization, dropping to around $0.25 by the end of 2022, which is about 90% below its all-time high.
Technical Analysis
A recent analysis by Crypto Capital Venture mentioned that Cardano faced hurdles at both the 20-day and 50-day moving averages, which hover in the 25-27 cent range. A successful surge beyond these benchmarks might indicate a shift towards a bullish trend.
Development and Future Prospects
Despite the bearish price action, 2023 has been a significant year for Cardano in terms of development, with one of Charles Hoskinson’s posts hinted at continued efforts in 2024, dubbed as the “Mithril age of Cardano”3. Come October 2023, Cardano ranks as the eighth most valuable cryptocurrency, boasting a market capitalization exceeding $8.7 billion, sitting above notable cryptocurrencies like Litecoin, Solana, Polygon, and Dogecoin.
Read the article about the future of Solana in our material.
Transaction Processing Capacity
Cardano aims to process 2.5 million transactions per second “in theory”, although currently, it can process 7 transactions per second compared to Ethereum’s 20 transactions per second. Released Ethereum 2.0 also intensify the competition.
Community Sentiment and Analyst Predictions
The sentiment within the Cardano community is mixed. Some believe that ADA’s price decline is temporary, while others are more skeptical about its future. However, trends4Business forecasts a rebound for ADA from $0.25, setting an average price target at $0.5 for the remainder of 2023 and anticipates ADA reaching unprecedented highs in the coming 2-5 years.
Does Cardano have a future?
Despite the bearish trend that has engulfed Cardano recently, many believe that Cardano has a promising future. The blockchain’s fundamentals remain strong with an active development team led by industry stalwart Charles Hoskinson. The team’s commitment to a slow and steady approach towards upgrades, aiming for thoroughness over speed, has been praised. Additionally, the platform has witnessed a growing total value locked (TVL) in its network, indicating a growing user base and utility. The recent Cardano Explorer update and the continuous development as hinted for 2024 reflect a blockchain that is actively evolving.
Moreover, its position as one of the top 10 cryptocurrencies and being hailed as the first third-generation cryptocurrency shows a significant standing in the crypto space. Analysts too, have mixed yet some optimistic forecasts, anticipating a long-term price recovery for ADA. However, the short-term outlook appears bearish, driven by broader market conditions and perhaps, by impatience for faster development progress. The phrase “does Cardano have a future” encapsulates the mixed sentiment in the community, but the underlying fundamentals and ongoing development activities provide a basis for optimism.
Conclusion
The question, “is Cardano dead” reflects more of a concern rather than a reality. Cardano’s active development, its position in the cryptocurrency market, and future plans signify a potential for recovery and growth. The ADA community and developers are looking forward to overcoming the present challenges and moving towards a bullish trend in the near future.
