Cardano Price Plunges to 2017 Levels Following Crypto’s 5th Birthday

Share This Post

  • Cardano has been a member of the top 10 by market cap for most of its existence
  • ADA is down 86% from its all-time high, the second-biggest decliner among the top 10 next to DOGE

Cardano, the so-called “third-generation blockchain,” has been a first-class loser when it comes to price this far into the 2022 bear market.

The perennial top-10 crypto, which briefly reached as high as the number 3 spot behind ether and bitcoin for a few months in 2021, has fallen about 86% from its September 2021 peak of just over $3 per coin.

The chain’s total value locked (TVL) has similarly slid 77% from a March 2022 peak, according to DefiLlama — and now stands at roughly $76 million, good for the 27th by that metric.

Among the project’s latest highlights: an effort to authenticate wine from the nation of Georgia, and “crypto-backed algorithmic stablecoin that acts as an autonomous bank,” dubbed Djed — a tough sell in a post-Terra environment.

Its decentralized applications (dapps) have also struggled to compete with other layer-1s. The so-called Plutus smart contracts underlying dapps are unique to Cardano and written in a relatively uncommon coding language, Haskell. That means dapps cannot be easily ported over from Ethereum, the way they can be deployed to an Ethereum virtual machine (EVM)-compatible layer-1 blockchain.

Cardano has taken steps to attract developers and has ranked well in developer activity metrics, according to analytics firm Santiment. But a year on from the Alonzo hard fork, which first added smart contract functionality, its largest DeFi decentralized exchange, Minswap, is recording less than $1 million in volume on a typical day.

From Byron to Voltaire

The ethos of Cardano has been slow, meticulous progress along a roadmap of five eras named for famous writers: Byron, Shelley, Goguen, Basho and Voltaire.

Now, in the Basho era, the most recent upgrade, Vasil, was, in terms of complexity, on par with the Ethereum Merge, according to Cardano founder Charles Hoskinson.

The upgrade brings with it a version 2 of Plutus, expected to increase dapps’ throughput from about 1.5 transactions per second (TPS) to as much as nine. That may not sound like a lot compared to Ethereum layer-2s or Solana, but proponents point out that comparing Cardano’s Unspent Transaction Output (UTXO)-based model to an account model such as Ethereum’s is not exactly apples to apples.

Even so, according to Starbloom Ventures’ Evan van Ness, the bulk of Cardano’s transaction activity is simple cardano (ADA) transfers, not smart contract activity.

Like the historic Ethereum switch to proof-of-stake, Vasil provided no immediate boost to the ADA price.

Both its price and its market cap remain stuck in the Byron era, finding support at around $0.42, since the May crypto market crash, but setting progressively lower highs.

It’s not clear whether Basho’s focus on scaling will be enough of a catalyst to turn that around.

Cardano’s original roadmap is set to come to a close in 2023, Hoskinson said, calling it “the strongest, most resilient self-governing organism ever conceived, with a population in the millions and much utility for all.”

Added Hoskinson: “There are many challenges to come; there’s many upgrades to do.”

  • Macauley was an editor and content creator in the professional chess world for 14 years, prior to joining Blockworks. At Bucerius Law School (Master in Law and Business, 2020) he researched stablecoins, decentralized finance and central bank digital currencies. He also holds an MA in Film Studies; film credits include Associate Producer of the 2016 Netflix feature documentary, “Magnus” about World Chess Champion Magnus Carlsen. He is based in Germany.

    Contact Macauley via email at [email protected] or on Twitter @yeluacaM



Source
Cardano Price Plunges to 2017 Levels Following Crypto’s 5th Birthday is written by Macauley Peterson for blockworks.co

Related Posts

US energy officials agree to ‘destroy’ all data from crypto mining survey

United States energy officials have reached an agreement with...

Binance’s woes in Nigeria continue to mount

Binance’s woes in Nigeria continue to mount.  There was confusion...

Cryptocurrency Mining: A Beginner’s Guide to Generating Digital Assets

Cryptocurrency mining is a process that allows individuals to...

Inside Web3War v3.0: Ranked Matches, Real Rewards, and Skill2Earn Dynamics

Roll1ng Thund3rz has unveiled the latest version of its...

Diversifying Your Cryptocurrency Portfolio: Strategies for Beginner Investors

Diversification is a fundamental principle of investment management that...

Understanding Blockchain Technology: The Foundation of Cryptocurrency

Blockchain technology has emerged as the backbone of cryptocurrencies,...
ethereum
Ethereum (ETH) $ 3,424.54
bitcoin
Bitcoin (BTC) $ 62,166.66
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 0.620325
binance-usd
BUSD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.724186
dogecoin
Dogecoin (DOGE) $ 0.138968
litecoin
Litecoin (LTC) $ 90.65
solana
Solana (SOL) $ 129.13