In a startling turn of events, Cardano (ADA), one of the most prominent cryptocurrencies, has plunged to its lowest price of the year, falling below the critical $0.25 mark. This sharp decline has sent shockwaves through the crypto community, sparking concerns of a looming “depression phase” for ADA.
The latest September 11, 2023 data revealed that ADA prices dropped to a meager $0.245, marking a 1.25% decrease during early Asian trading hours. This marks a significant decline from its previous highs, raising questions about the future of this digital asset. The coin remains the 8th largest cryptocurrency, with a market capitalization of approximately $8,646,850,325. The 24-hour trading volume for ADA is $105,380,579 USD, reflecting continued trading activity.
Cardano has not seen such gloomy days since the bear market of late 2020, when it struggled at a price range of $0.16 to $0.18 for several months. At that time, it eventually managed to climb back above $0.30. However, the current situation paints a grimmer picture, with ADA languishing at a staggering 92%, down from its all-time high of $3.09 in September 2021.
Comparatively, other cryptocurrencies like Ethereum, which ADA proponents have often claimed Cardano surpasses, have fared slightly better, with Ethereum only down by 67% from its peak. Even Binance’s native token, BNB, has shown more resilience despite regulatory challenges.
The dire predictions for ADA’s future continue as ITC CEO Benjamin Cowen forewarns of a potential “depression phase” if ADA falls below the $0.24 mark. Cowen suggested that this depressive period could persist until quantitative easing (QE) returns, a scenario that might not materialize until 2024.
Furthermore, the ecosystem has seen some positive growth indicators, with token policies increasing by 850 and the native tokens minted on Cardano rising by 140,000. Additionally, the total number of transactions surged by 1.6 million in August, showing that Cardano is still active and relevant in crypto.
However, the total value locked (TVL) in the Cardano ecosystem currently stands at $177 million, making it the 16th largest blockchain network by TVL, according to DeFiLlama. This places it below other blockchain projects like THORChain, Kava, Cronos, and the newly launched Coinbase Base.
As Cardano grapples with its lowest price in 2023, the crypto community is pondering its future trajectory and whether it could weather this storm and emerge stronger on the other side. Only time would tell if ADA could regain its previous heights or is in a prolonged depression phase.
