Cardano (ADA) Fell By 50% From The Peak: Possible Reasons
ADA, the main asset of Cardano's newest smart contract platform, reached $1.5 in a few months of its free fall.
ADA loses 50% since the beginning of September
On September 2, 2021, the ADA price reached a record high of $3.10, on the eve of the activation of the smart contract functionality. This major update was launched as a result of the hard fork activation of the main Alonzo network in mid-September.
At the same time, its activation failed to provoke another wave of ADA price growth: the asset entered a multi-week "bear market". On November 26, 2021, it reached its lowest level since August 9.
The most obvious medium-term catalyst is criticism of the operation of Cardano smart contracts. As U.Today reported earlier, the viability, speed and functionality of this system have been attacked by maximalists of both Ethereum (ETH) and Bitcoin (BTC).
As for short-term "bearish" catalysts, the most obvious of them is the exclusion from the listing of ADA Cardano, by eToro, the main platform for trading derivatives. eToro has restricted its US clients to open positions in ADA and Tron's Tronics (TRX) from December 26, 2021.
Will ADA see another rally in 2022?
The inventor of Cardano, Charles Hoskinson, has already condemned eToro's decision and explained it by the lack of a global regulatory standard in the field of cryptography and blockchain.
As U.Today previously reported, Hoskinson is confident that 2022 will be a great year for his ecosystem. Speaking about his plans for the coming year, he called them a "living ecosystem".
He calls Cardano's technology incredible and claims it is capable of fueling "thousands" of products through "so many great innovations."