Cardano Price Forecast As Blockchain’s Total Value Locked Figures Reach Record High – ADA Adoption On The Rise?
The ADA-denominated value of cryptocurrency locked within smart contracts on the Cardano blockchain recently reached an all-time high of 341 million ADA, according to data presented by DeFi Llama.
ADA is the token that powers Cardano’s smart contract-enabled high-performance blockchain that is seen as a rival to the Ethereum blockchain.
The ecosystem got a boost earlier this year after the launch of the Djed over-collateralized algorithmic stablecoin, which has opened up new opportunities for yield farming in the Cardano DeFi ecosystem. Djed’s circulating supply is already around 2.1 million, while the protocol has a reserve share of 471%, according to the project’s website.
When tokens engaged in Staking, Pool2 protocols, Lending, Liquid Staking and Vesting are taken into account, Cardano’s “trade value locked” (TVL), the number of ADA tokens rises to over 387 million worth over $120 million at the current market price. However, this is still slightly below the all-time high from early 2022.
USD-denominated TVL still well below 2022 highs
Despite the recent increase in the ADA-denominated value of Cardano’s TVL, a significant drop in the USD-denominated price of ADA in recent weeks means that USD-denominated TVL on the Cardano blockchain remains well below its early 2022 highs. The highest TVL Cardano has ever seen was over $430 million around 12 months ago.
Back then, Cardano’s price was closer to $1.0 per token. At the time of writing, ADA/USD is trading hands just above $0.31, down around 90% from all-time highs, and down 25% since finding strong resistance in the $0.42 area in early February.
The cryptocurrency’s aggressive decline in recent weeks comes amid broader weakness in the crypto market as a result of a stronger US dollar, US interest rates and weakness in stocks as traders price in a more hawkish Fed tightening outlook for the year. Crypto-specific concerns are also hitting the market, such as the recent demise of crypto-friendly Silvergate Bank and ongoing jitters about a regulatory breach in the US.
Where next for Cardano (ADA)?
Cardano’s fall this week means the cryptocurrency has fallen below all the major moving averages. Moreover, the cryptocurrency now appears to be in a downtrend going all the way back to June 2022. ADA/USD’s failure to decisively break above its 200-day moving average last month is yet another sign that there was not enough momentum for a significant positive change in the price outlook in the short term.
Technically, the outlook for the cryptocurrency does not look good in the near term, with a fallback below $0.30 looking very likely. That would open the door for a drop back to late 2022 lows in the $0.24 range, a further 24% decline from current levels. However, given that the 14-day relative strength index (RSI) is approaching oversold territory, it is unlikely to be a straight line lower as it has been in recent weeks.
Cardano (ADA) alternatives to consider
Cardano’s near-term outlook looks dim, with a significant risk of further short-term losses. Investors looking for better, short-term coins may want to diversify their holdings with some presale tokens that have a great risk reward – yes, while presales are risky (as all cryptos are), crypto investors have historically secured the best returns. those who got in early on a pre-sale.
In the list below, we have reviewed the top 15 cryptocurrencies for 2023, analyzed by Crypto news Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
