There is tremendous excitement surrounding Cardano and its underpinning technology. However, there is a near standstill in DeFi and app growth. Moreover, social sentiment keeps heading in the wrong direction, indicating more ADA price woes loom ahead.
It is normal to see the value of any cryptocurrency fluctuate over time. No financial asset is stable, and that applies as much to forex markets as it does to cryptocurrencies. Additionally, the second half of 2021 and most of 2022 have been brutal for all cryptocurrencies. Prices continue to drift lower for nearly all assets, and the momentum might not reverse before 2023.
Cardano finds itself in a rough spot these days. Most people will agree ADA is vastly undervalued, although that applies to Bitcoin and Ethereum too. There are many bargains out there for those brave to take a [calculated] gamble on top cryptocurrencies. Current prices are a fraction of what they should be, yet no one knows if and when things will improve again.
Following a fresh 15.6% ADA price decline, things continue to look bleak for Cardano. That is not abnormal, as all other markets have similar weekly setbacks. However, Cardano had a high of over $0.43 less than a week ago, and many hoped to see $0.5 again. Today, it can be bought for just over $0.36, although that might not be the lowest point it will hit. With the weekend around the corner, more bearish momentum is very plausible.
Even though Cardano is a more efficient network than some blockchains, it doesn’t captivate developers. Cardano’s dApp ecosystem is relatively small compared to other networks. It is good to see solutions spanning gambling, marketplaces, DeFi, collectibles, and games, though. Those are all crucial industry pillars with future potential. Even so, there are a few dozen dApps on Cardano, which is much lower than one would expect to see by now.
Things do not improve on the decentralized finance front. The DeFi industry continues to suffer from the bearish crypto market conditions. Even so, every bear market is an excellent time to build and improve. Cardano’s DeFi position spans roughly a dozen notable protocols. Again, it was much lower than expected, and its TVL dropped below $67 million.
Unfortunately, the big projects – Minswap, WingRiders, SundaeSwap, MuesliSwap, and ADAX Pro – all lost between 11.33% and 15.29% in TVL this week. FluidTokens is the only DeFi protocol on Cardano with a weekly improvement – +0.76% -, but it represents just over $45,000.
Something needs to change for the broader decentralized finance industry. Unfortunately, investors and speculators are less eager to take risks with their crypto holdings. The rising number of hacks, thefts, and exploits affecting DeFi isn’t helping matters either.
The statistics by LunarCrush confirm social sentiment for Cardano isn’t optimal either. The social mentions (-7.5%), engagements (-2%), and contributors (-2.3%) are all down for the week. No significant setbacks, but it indicates even the community is a bit subdued by the overall market conditions.
Sentiment-wise, there isn’t much excitement. Bullish sentiment decreased by 10.1%, whereas bearish sentiment decreased by 0.5%. Interestingly, the Twitter volume is down by 8.3%, yet Cardano gains momentum on Reddit (+21.1%) and Medium (+13.3%). That is offset by a near 16% drop in YouTube activity for the week.
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