- Cardano’s eight-week streak of closing in the green has finally ended.
- ADA isn’t moving with the same aggression as in early December.
- Is Cardano going to make a comeback?
Cardano (ADA) had a strong start two weeks ago, outperforming rivals like Solana, Ethereum, and Bitcoin during its eight-week hot streak. However, as all good things come to an end, the asset experienced some turbulence, causing its confidence to wane, ultimately breaking the streak and spreading indecision and apprehension among market participants.
In this edition of our bi-weekly update on Cardano, we turn to our expert, Insha Zia, to provide insights into these developments as you wrap up your gifts and enjoy the merry season.
Table of Contents
- News and Events: Understanding the Impact
- Current Outlook
- On the Flipside
- Why This Matters
News and Events: Understanding the Impact
Cardano Starts Race Early But Reaches Dead-end
Cardano had been on a roll this month, coming fresh off an eight-week streak of closing in the green. Showing no signs of slowing down, even in the face of mounting sell pressure, ADA confidently moved to the upside, marking a new yearly high at $0.68 on December 14, gaining over 25% in a single day. In stark contrast, rivals Bitcoin, Ethereum, and Solana experienced a sharp 8% downturn.
However, it wasn’t long before Cardano also felt the turbulence from the market-wide correction, with market participants using the new yearly high as an exit. As a result, ADA moved its bow to the 0.5 region, sinking to 0.54 on December 18, ultimately breaking its streak.
While Cardano experienced this setback, Bitcoin and most altcoins in the market rose, gaining between 8 and 10%. Solana particularly stood out, surging 50% over the week and achieving a new yearly high at $99.48.
Although Cardano has since found stable ground, it is still far from its yearly high. It is moving in line with the market, implying that bullish market participants are still deciding when to push the price higher.
Cardano DeFi TVL Marks New All-Time High
The Cardano DeFi ecosystem has been one of the hottest prospects in the industry this year, showcasing consistent growth and impressive performance. Starting at $49 million, Cardano’s DeFi Total Value Locked (TVL) has experienced a steady ascent, witnessing a remarkable 700% increase throughout the year.
In contrast, Ethereum, the leading platform by DeFi TVL with over $29 billion locked, remains significantly distant from its $106 billion all-time high.
Charles Hoskinson Accidently Plugs a Memecoin
Cardano Founder Charles Hoskinson recently shared an adorable update on his canine companion, Freya. However, what seemed like a routine lifestyle update became a financial rollercoaster for many when the founder casually tagged an account as ‘@Freyahoskinson,’ along with an endearing snapshot of his furry friend.
Seconds after the crypto pundit’s post, a relatively unknown Cardano-native memecoin, Freya, slyly changed its handle from @FreyaHosk to @FreyaHoskinson, creating an illusion to make it appear that Hoskinson endorsed the project to his over one million followers.
What unfolded next was a frenzied influx of eager buyers, optimistic about scoring quick profits. According to dexscreener, Freya experienced a jaw-dropping 800% surge in price following the Cardano Founder’s post, only to crash 15 minutes later, erasing all gains.
Following Freya’s Fall, Hoskinson set the record straight, distancing himself from the project, emphasizing that he had nothing to do with it.
Charles Hoskinson Isn’t Keen on Partnerships with XRP
Charles Hoskinson and the XRP community have one of the longest-standing feuds in the industry. The two parties often take swipes at each other, seldom missing an opportunity to express their dissenting opinions of one another.
The Cardano Founder was recently brought back into the ring for a comment he made a year ago regarding XRP. The crypto pundit had heavily criticized the protocol’s community by labeling it ‘toxic and petty’ and dismissing any potential collaboration between Cardano and Ripple.
When asked if he would reconsider his stance from a year ago, Hoskinson’s response remained a resounding no to potential partnerships. Defending his view, Hoskinson pointed to two years of what he described as ‘harassment’ from the XRP community, coupled with the perceived lack of technical overlap between Cardano and XRP.
The Cardano Founder elaborated that XRP had a different market fit and was built for a ‘different purpose.’ He emphasized that XRP wasn’t like Ethereum, Polkadot, and Algorand, which focused on solving similar problems.
Cardano Cut From New Messari Annual Report
Messari is a premier data aggregator platform renowned for providing data-driven insights into the year’s hottest trends and what lies ahead for investors. In keeping with its tradition, Messari recently released its end-of-year report, shedding light on the top-performing tokens this year.
However, while covering the hottest prospects for 2024, such as Bitcoin, Ethereum, and Solana, Messari failed to mention Cardano, one of the largest protocols in the ecosystem. Upon noticing this, the Cardano community swiftly aimed at the market intelligence platform and its founder for the conspicuous absence of any mention of their chain despite being the eighth-largest crypto by market cap.
Influencers, community members, and executives voiced their discontent, arguing that the report deliberately overlooked Cardano and its extensive list of developments throughout the year. As the community’s dissatisfaction escalated, Tamara Haasen and Charles Hoskinson, President and CEO of IOG, directly called Messari’s CEO for an explanation.
Messari CEO Ryan Selkis, the author of the contentious report, defended the decision, attributing it to what he termed ‘simple math.’ Selkis clarified that his analysis exclusively delved into the top ecosystems based on economic activity and block space.
Expanding on his stance, the Messari CEO pointed out that his methodology intentionally excluded a ‘TON’ of projects. He also added that he didn’t give much airtime to Layer-1 projects besides Ethereum and Solana, citing its audience’s generalist nature.
Cardano has maintained its bullish structure since the last DailyCoin regular, surging 25% to its current price of $0.62. In the last two weeks, ADA reached yet another yearly high at $0.68, sparking investor confidence and enthusiasm while prompting some to cash in on profits.
At the time of writing, investor sentiment tilted slightly on the bearish side, particularly on on-chain and derivative markets. Exchange market sentiment remained neutral.
Given ADA’s bullish structure, the token appears poised to advance toward the liquidity range at $0.85 in the following weeks, bringing it close to the highly anticipated $1 price level.
The market is buzzing with excitement, evident in Cardano’s long-to-short ratio, which maintains a positive position and signals a considerable surge in investor buying.
On the Flipside
- Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
- Cardano’s yearly growth currently sits at 172%. Last quarter, ADA struggled to push its annual growth above 5%.
Why This Matters
After moving full steam ahead for eight consecutive weeks, Cardano might run out of fuel, which could prompt holders to capitulate. As we near year-end, the following week is crucial to determine if Cardano will maintain its bullish structure heading into the new year.
Read how Messari stirred drama by cutting Cardano from its report:
Messari Report Irks Cardano Execs over Chain’s Omission
Read the last DailyCoin Regular:
DailyCoin Bitcoin Regular: BTC Looks to Close Out the Year Strong