- Cardano journeys a rocky road to recovery.
- Cardano Foundation shares that US States’ are exploring integrating the chain.
- ADA has set sights on a historic whale accumulation zone in the face of dwindling market confidence.
A sense of anticipation permeates the air as the crypto market braces itself for the impending storm ahead of the Bitcoin halving in two weeks. With altcoins like Cardano gearing up for potential turbulence, the market is on edge, expecting a crash.
Against this backdrop of fear and uncertainty, ADA finds itself struggling with its own challenges, fighting to maintain support following a third consecutive week of decline. However, while ADA disappoints with its price performance, the Cardano ecosystem is abuzz with activity, from kicking off viral trends to potential partnerships with US states.
In this edition of the DailyCoin Regular, we talk about:
- Several US States are interested in incorporating Cardano into their blockchain voting system.
- Grayscale is cutting Cardano from its roster.
- Cardano Girls viral campaign.
- And ADA’s price performance.
Join our resident Cardano expert, Insha Zia, as he sheds light on these exciting developments and more.
Table of Contents
News and Events: Understanding the Impact
Cardano’s Frederik Gregaard Reveals US States Approached Them
Earlier in March, in an exclusive interview with DailyCoin, Cardano Foundation CEO Frederik Gregaard shed light on regulators’ warming attitudes toward the crypto and blockchain industry.
Though the interview was conducted several weeks ago, the news recently gained traction across various YouTube channels and media platforms.
With a cheerful smile, Gregaard affirmed that governments are embracing blockchain technology and decentralization.
He elaborated that several US states have approached the Cardano Foundation to explore developing a lightweight blockchain voting system, promising greater transparency and accountability.
Sponsored
“A couple of US states are saying, hey, can you help us do a lightweight blockchain solution to make voting more transparent and accountable,” Gregaard added.
The Cardano Foundation CEO added that they are considering whether they can provide the voting system on short notice, given the elections are due in November.
“I still have to look at if we can actually make this [the blockchain voting system] happen in the timeframe they’re looking at,” Gregaard shared.
While several US States note Cardano’s prowess and explore interest in using the chain for their voting needs, Cardano Girls are doing the heavy lifting, carrying the chain’s marketing with a viral trend.
Insha’s Insights
Cardano’s dialogue with governments around the world is a major milestone. It’s also worth noting that the foundation’s efforts are not limited to the US but also extend to the EMEA region. I believe Cardano is playing an important role in catalyzing the mainstream adoption of blockchain technology in places where it should really matter.
Cardano Girls’ Viral Campaign Puts Marketing Woes Under Spotlight
Recently, a trend dubbed “Cardano Girls” soared to stardom after content creator LILY posted a brief video showcasing women proudly proclaiming, “We’re Cardano girls,” accompanied by witty quips like, “Of course, we have Charles as our phone wallpaper.”
At press time, the Cardano Girls post had amassed over 1.8 million views and 1,100 comments. The playful video highlighted the increasing presence of women in the crypto industry, though it underscored Cardano’s underwhelming marketing up to that point.
Despite Cardano’s technical prowess, the network has long struggled to gain mass market appeal. Rick McCracken, who runs the DIGI staking pool, recently ran a survey gauging the community’s thoughts on Cardano’s marketing impact. 68% of respondents felt Cardano’s efforts were worse than other large-cap projects.
A simple, playful trend revealed its marketing deficiencies, serving as a compelling case study for what’s needed to captivate broader audiences.
Insha’s Insights
Cardano has always been meticulous with its developments, taking its time. Given its focus on research and academics, I believe it misses a big mark with its marketing efforts. While the Cardano team can publish as many papers as they want, at the end of the day, how a project builds its image and connects with its users is what really leaves a lasting impression.
Grayscale Drops ADA From Holdings
In a surprising turn of events, Grayscale has ousted Cardano from its Digital Large Cap Fund during its quarterly fund rebalancing. The world’s largest crypto-focused asset manager announced using the proceeds generated from selling the assets to buy existing fund components.
With Cardano out of the picture, Grayscale’s large-cap fund now primarily comprises 70.96% Bitcoin, 21.84% Ether, 4.52% Solana, 1.73% XRP, and 0.95% Avalanche.
The decision could be linked to Grayscale’s challenges since entering the Bitcoin ETF space. The asset manager has faced consistent weekly net outflows since January, totaling over $15.23 billion to date.
Insha’s Insights
Grayscale has been a sinking ship ever since it decided to butt heads with trillion-dollar asset managers over Bitcoin ETF fees. The decision to set its fees at 1.5% has left a $15 billion hole in its holdings. It’s imperative that the asset manager will do everything it can to save its ship, which includes derisking from tokens like ADA.
Cardano’s ADA Scrambles in Search of Support
Cardano’s journey has taken a concerning turn as it retraces the gains it celebrated this year. In the first half of March, ADA emerged as a standout performer, scaling to a two-year high of $0.8 and sparking excitement in its wake.
However, while everyone celebrated, anticipating another leg up, the market dampened the festivities, sending Cardano into a spiral as it struggled to anchor itself amid dwindling market confidence and waning buying interest.
At press time, ADA finds itself below $0.6, hovering at $0.57, representing an 18% drop over the past week. With two weeks left until the Bitcoin halving, anticipation is brewing for another 20 to 30% drawdown, leaving it up to Cardano Whales to potentially intervene. So, let’s take a deeper look.
Current Outlook
Cardano’s price performance has been disappointing since the second half of March, leaving market participants wondering if ADA will find solid ground to cushion its fall soon. Understandably, investors are growing apprehensive, which can be seen in ADA’s negative long-to-short ratio and its overall bearish market sentiment.
With investors growing increasingly hesitant, ADA’s price could continue to decline, possibly reaching below $0.5, until buying pressure picks up.
Interestingly, when ADA was under $0.5, Cardano surged by 70%, largely attributed to buying pressure from the Whales. Cardano Whales could be biding their time on the sidelines, waiting for an opportune moment to strike.
Data reveals that the $0.47 to $0.49 range is favored by whales, which accumulate in substantial amounts when ADA hovers around this level.
According to IntotheBlock, when ADA dropped below $0.5, Whale transactions surged to 7,000 from the typical 5,000. In a matter of days, these large wallets amassed over $14.34 million worth of Cardano, while retail investors offloaded their holdings out of fear that ADA might decline further.
On the Flipside
- Technical interest from US states is not indicative of concrete plans. It is unclear what stage discussions are in or if legislators are simply playing loose with their interests.
- Cardano needs more creative marketing endeavors to compensate for the lack of progress despite the overall bull market.
- Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
- ADA’s yearly growth has since fallen to 15% from peaking at 63%.
Why This Matters
Cardano’s disappointing performance continues into its third week, declining by over 25%. However, developments like US states exploring partnerships and viral social media trends have injected some much-needed relief and belief in the ecosystem while ADA looks to find its footing and bounce back.
Will Morgan Stanley offer Bitcoin NFTs soon?
Morgan Stanley Bitcoin ETF? Insiders Stir the Pot
Why is Binance pulling Bitcoin NFT support:
Binance Pulls Bitcoin NFTs to Focus on Other Products
