Cardano is currently at its most undervalued level since 2020

Sahana Kiran
Cardano
Source – Pixabay

Cardano [ADA] entered the crypto market only in 2017. Despite this, the altcoin managed to witness impeccable growth. In September 2021, ADA secured an all-time high of $3.10 but that was the last of the price action visible for a long time. The value of the ADA token remained undervalued despite the network rolling out a great many upgrades in the following months.

The pandemic got humanity in shackles which further paved the way for the emergence of digitalization and cryptocurrencies. However, the market encountered a slight setback in March 2020 at the beginning of the COVID-19. Cardano with most other cryptos remained low on the price charts for quite some time but quickly recovered in the face of adversities.

Cycles have passed and now once again the market was marching higher. However, this time Cardano was visibly enduring a price rut.

The Market Value to Realized Value [MVRV] metric sheds light on the fairness of a coin’s price. Lauded for its accuracy, even the MVRV 365D ratio suggested that ADA holders were encountering a loss of about 26%.

Cardano was down by almost 60% from its all-time high. At press time, the coin was trading for $1.21 with a 1.33% surge over the last 24-hours. Throughout the last couple of days, the coin surged by only 17% which was comparatively lesser than the other assets in the market.

Cardano moves beyond 30 million transactions

While the price of the altcoin undergoes recovery, the total number of transactions on its network surged beyond 30 million.

Despite rolling out an array of enhancements for the network the community called Cardano “underperforming.” The community longed for a substantial surge in the price of the altcoin.

Adding to the building pressure, XRP took away its sixth position on CMC in terms of market cap. At present, Cardano stood as the seventh-largest cryptocurrency with a market cap of $40.48 billion.