Cardano’s ADA token has once again slid back towards less than a dollar. With the prices going down rapidly, Cardano holders are finding themselves incurring huge losses by holding onto the token. April 2022 has been a bearish month for Cardano. The currency came crashing down from $1.19 to $0.82 in April, which is even lower than half of its all-time high price of $3.09 in September.
According to several blockchain indicators, this situation puts more than two-thirds (67%) of Cardano holders underwater, while 9% of them are at a breakeven level. This indicator identified the average price at which the holders bought these tokens and compared it to the current price of ADA.
So far, 76% of ADA holders have been holding onto the Cardano token for a year, and 11% of the holders have been holding onto the token for more than a year to earn revenue. But with the price expected to go down to $0.80, more Cardano holders could find themselves in hot water.
The drop in the price of the Cardano token could be due to the platform not meeting the expectations set with the launch of good contracts. Cardano is still considered a barren land when it comes to the number of decentralized apps (DApps). There are currently ten decentralized finance (DeFi) protocols in the works in the community worth $233 million.
However, their co-founder suggests that several Cardano DApps are awaiting the Vasil hard fork to launch in June. The upcoming phase of Cardano’s roadmap will be focused on smart contracts and scalability, powered by a new technology, “Hydra,” to improve the network throughput.
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