Cardano (ADA) was once a top performing cryptocurrency. The asset climbed to an all-time high of $3.09 in September 2021, with its market cap hitting the $90 billion mark. ADA was also among the top 10 cryptocurrency projects by market cap. Despite its incredible performance in the past, ADA has struggled to generate steam in the last few years. The project’s market cap has fallen to $6.2 billion, and its price has dipped by more than 94% from its peak. Let’s discuss why Cardano (ADA) has struggled to make gains in the last few years, and if it can recover its lost momentum. Can Cardano’s (ADA) market cap reclaim the $90 billion mark?
Why Has Cardano (ADA) Crashed And Can It Recover Its $90 Billion Market Cap?
Source: X
Cardano’s (ADA) dip over the last few years is not a unique development. The larger crypto market itself has seen a significant exodus of capital. The current bear market kicked off in October of last year after increased macroeconomic pressure and geopolitical conflicts. The market saw some recovery in May, but the scenario reversed after inflation came in higher than anticipated. Things worsened after the US-Iran conflict saw fresh military operations after peace talks failed.
Macroeconomic factors and geopolitical issues are not the only bearish forces pulling Cardano’s (ADA) price. The project has also seen a dip in DeFi projects. Cardano founder Charles Hoskinson says that the project could see more DeFi platforms shutting down later this year.
Recently the Cardano community voted against hosting its annual summit due to high costs. The move may have further hampered investor sentiment.
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Despite its current predicament, Cardano (ADA) could see some relief once the larger economy improves. An interest rate cut could also usher in fresh capital into high-risk assets.