Amazingly, in the last 7 days, altcoin Cardano (ADA) has devalued SLIGHTLY LESS than the main cryptocurrency, Bitcoin (BTC). Taking into account gross devaluations of other cryptocurrencies, would this be an indication of market recovery?
At the time this article is written, consulting the platform CoinGecko, we have the following information;
In the item “Valuation in the last 7 days” Bitcoin (BTC) is at -11.4%. While in the same category, Cardano (ADA) is around -5.6%.
Such metrics tell us that both cryptocurrencies have suffered devaluation in the last seven days. However, Cardano (ADA) “devalued less” than Bitcoin (BTC), which may indicate a new lease of life for Cardano.
And what would be the reasons for the devaluation of Bitcoin?
We have now seen at the end of 2021 and beginning of 2022 a “cloud of fear”, installed in the investment sector in general. Not just in relation to cryptocurrencies, we also smell this fear in stock exchanges, all over the world.
When we filter the investment sector by “Cryptocurrencies”, we have Bitcoin as a long-term investment, seen by many as a “new store of value”. However, a market retraction behavior indicates that some people who were adhering to investing in Bitcoins felt insecure about this “new store of value”.
Such insecurity can come from the liquidations of Bitcoin futures contracts, the ban on cryptocurrency mining in China, the energy crisis in Kazakhstan, among others. It would be frivolous to point to “a single villain”.
Cardano Supposedly as SAFE Option for Smart Contracts
The two biggest impediments to faster and more sustainable development within the Ethereum Network, when it comes to smart contracts, have always been high gas charges and network congestion. These ghosts caused other blockchains to invest in solving the problem. Not seeking to “take the place of the ETH network” but, in principle, to bring faster and cheaper options.
Therefore, Cardano proved to be a good, faster and cheaper blockchain option for smart contracts. But before long, some experts began to say that she still didn’t deliver everything that was expected. Making room for Polkadot, Solana, Fantom and others, to present themselves as better options. Blockchains that delivered faster than developers expected, even being considered as new ETHs.
Cardano was discredited and suffered significant devaluation, even being removed from the list of cryptocurrencies of important exchanges. However, with Solana suffering from hacking attacks, there is new hope for Cardano, seen by its developers as a safer and more tested blockchain, in relation to setbacks that Solana will still encounter on the way.