The ongoing crypto winter has put Bitcoin, Ethereum, Cardano and most cryptocurrencies on an unbearable downtrend for the past six months. In this environment, most cryptocurrencies have lost more than half of their value.
“The local bottom for Cardano is likely to be here”
Last month, the global cryptocurrency market cap dropped to $1.4 trillion, which is far from the November high of $2.9 trillion. According to data from CoinGecko, the total market cap is currently $890 billion. However, attempts to stabilize prices remain lingering geopolitical concerns. There is a fuzzy fight against ballooning inflation figures. Moreover, the market remains under pressure from regulatory uncertainties.
However, crypto analyst Newton Gitonga says that amid all the chaos, Cardano (ADA) is diverging from the overall market weakness. According to the analyst, ADA is signaling that it is ready for a massive recovery. As you may remember from Kriptokoin.com , it reached an all-time high with 3 dollars last fall. Since then, it is the seventh-largest cryptocurrency with a market cap of $15.9 billion. Cardano retraced to $0.40 in May 2022, down about 86.31% from its peak.
However, the analyst thinks ADA’s strength is kicking in, despite the bloody sale. According to the analyst, Cardano now threatens to rally other assets. The price has seen significant increases recently due to events such as network upgrade. The analyst states that traders have experienced some of the longest monthly price increases in the past two weeks. This indicates that the local bottom could be here, according to the analyst.
“ADA is likely to reach $10 very soon.”
Apart from technical factors, experts rely heavily on the fundamentals of Cardano, which they believe will be the catalyst for the next big Bull Run. According to Dan Gambardello, founder of Crypto Capital Venture (CCV), one of the biggest selling points for Cardano “is that it doesn’t break like other protocols. The expert predicts ADA to reach $10 “much sooner than most think.”
Will updates be catalysts for Cardano?
Security, low transaction costs and a great environment for builders. It has seen a notable increase in the number of projects built on Cardano. Currently, more than 1000 projects are being built on Cardano. Non-Fungible Token (NFT) collections take the biggest share of these. Other projects include stablecoins, lending protocols, startup incubators. Also included are DeFi protocols and Decentralized Exchanges (DEXs). Meanwhile, the number of ADA wallets exceeded 3.5 million, approaching Solana’s number of wallets.
According to Cardano founder Charles Hoskinson, the Vasil Hard Fork is approaching. This update is expected to bring a ‘major performance boost’ to the network. The analyst states that this could be a precursor for ADA’s price recovery. Earlier last week, ADA developers delivered a new node version for Vasil, as well as a Plutus-compatible node. This is part of the final testing process before the upgrade. Meanwhile, the Vasil upgrade is expected to happen later this month.
