{"id":17535,"date":"2022-05-25T20:06:32","date_gmt":"2022-05-25T14:36:32","guid":{"rendered":"https:\/\/zebpay.com\/?p=15149"},"modified":"2023-10-12T07:27:06","modified_gmt":"2023-10-12T07:27:06","slug":"cardano-is-a-stable-crypto","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto","title":{"rendered":"Cardano Is a Stable Crypto; but Why Aren\u2019t Prices Growing? An Analysis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#About_Cardano\" title=\"About Cardano&nbsp;\">About Cardano&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#What_Is_ADA\" title=\"What Is ADA\">What Is ADA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#Price_Movement_Chart_Recent_Decrease_in_Prices\" title=\"Price Movement Chart &amp; Recent Decrease in Prices&nbsp;\">Price Movement Chart &amp; Recent Decrease in Prices&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#Possible_Reasons_Behind_Why_ADA_Is_Falling\" title=\"Possible Reasons Behind Why ADA Is Falling&nbsp;\">Possible Reasons Behind Why ADA Is Falling&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#Future_of_Cardano_Coin_A_perspective\" title=\"Future of Cardano Coin: A perspective&nbsp;\">Future of Cardano Coin: A perspective&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/cardano-is-a-stable-crypto\/#Key_Takeaways\" title=\"Key Takeaways&nbsp;\">Key Takeaways&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>As a crypto trader, what if your investments were to increase by 100 times only to fall back to where they started from? Sounds like every crypto trader&#8217;s nightmare, right?<\/p>\n\n\n\n<p>Well, this nightmare is now turning into a reality for all crypto investors who have been bullish on Cardano\u2019s native token ADA. It delivered approximately a 3000% return on investment since its inception. However, after ADA reached an all-time high of USD 3.10 in September 2021, it started showing signs of retracement, and after steep sell-offs, its price came down to USD 0.53 approx.&nbsp;&nbsp;<\/p>\n\n\n\n<p>So, the pertinent questions worth pondering is: Cardano is a stable coin, so why then are Cardano\u2019s price dropping? Or for that matter, what are the factors that are stopping Cardano\u2019s price from going up? Let\u2019s examine all these issues in this blog.&nbsp;<\/p>\n\n\n\n<p>But first off, here is a brief overview of Cardano:&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-cardano\"><span class=\"ez-toc-section\" id=\"About_Cardano\"><\/span>About Cardano&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Like any other blockchain network, Cardano is based on a decentralised network. It employs layer-1 technology of Proof of Stake (<a href=\"https:\/\/zebpay.com\/blog\/overview-on-proof-of-stake-pos\/\" target=\"_blank\" rel=\"noreferrer noopener\">PoS<\/a>) that runs on a consensus mechanism.&nbsp; Its network is based on protocols that are meant to be energy efficient as compared to networks that were previously run by other crypto assets such as Bitcoin that were not environment-friendly. Cardano is a network, but to transact on that network, one has to use its native coin &#8211; ADA.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-ada\"><span class=\"ez-toc-section\" id=\"What_Is_ADA\"><\/span>What Is ADA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cardano\u2019s native coin is called ADA. It is mostly used for transactional purposes such as making peer- to- peer payments, rewards, or for staking. When prices of ADA rapidly increased in 2021, at one point, it became the third-largest crypto asset from a market capitalisation point of view. For the longest time, ADA did not leave the top 10 list of crypto coins and was starting to be considered a stable coin.&nbsp;<\/p>\n\n\n\n<p>To understand the journey of ADA from a stable coin to where it is now, let us explore the next section of this article.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-price-movement-chart-recent-decrease-in-prices\"><span class=\"ez-toc-section\" id=\"Price_Movement_Chart_Recent_Decrease_in_Prices\"><\/span>Price Movement Chart &amp; Recent Decrease in Prices&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image is-style-default\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/UTMKvzhUoQSe08XlevfJvFEZcrLBPX-C4wtnOyALcGkTDLkrBXVTxjj0185ZraHqQRHLKGTNEyOCLVTLo1sQJclArHVG-SLdaqrsQkpybmY_7st2HZ4Yzzhz8bEkQjMqcbt3W30e9KhlQPAJeg\" alt=\"Cardano Stable Coin\n\n\"\/><\/figure>\n\n\n\n<p>Source (coin marketcap)&nbsp;<\/p>\n\n\n\n<p>The price movement of ADA shows a clear peak of USD 3.1 in September 2021, and since then, it has been downhill so far. There are several technical indicators such as the Relative Strength Index (RSI) or some simpler indicators such as moving averages indicating neutral to bearish signs on the price of ADA.&nbsp;<\/p>\n\n\n\n<p>However, it is one thing to rely on technical indicators, but for investors, it is important to understand the fundamental logic behind any fall in price. To explore this in detail, let us discuss factors that are affecting the fall in the price of the Cardano coin.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-possible-reasons-behind-why-ada-is-falling\"><span class=\"ez-toc-section\" id=\"Possible_Reasons_Behind_Why_ADA_Is_Falling\"><\/span>Possible Reasons Behind Why ADA Is Falling&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Fed\u2019s Involvement in the Money Markets &#8211; In the last monetary policy, the US Federal government decided to hike interest rates to reduce the overall money supply in the economy. Such decisions were taken to tame global inflation. However, this meant that investors had an option of redirecting their money to government bonds that are now offering higher interest rates than before. The rate hike, in short, has led to a \u2018capital flight\u2019 situation where long-term investors are redirecting their money from one asset class, such as cryptos, to another asset class, such as government bonds.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Competition over Other Layer-1 Network Coins &#8211; Cardano has been facing intense competition from its fellow coins that run on the layer-1 network too. However, other coins, such as Ether, Solana, and Avalanche, have been facing a fall in prices but not as much as ADA. Additionally, there are several other crypto coins that are being developed every day that run on a sophisticated layer-2 network and are making investors shift money from old technology to newer ones.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Geopolitical dynamics and Global Sell-off &#8211; We are all aware of the geopolitical warfare that is going on between Russia and Ukraine. In such a hostile environment, there are many other countries that are imposing sanctions against other countries. Since crypto investors are global, amidst such sanctions, investors fear the imposition of a sanction might lead to their investments getting blocked in a foreign country. Seeing such a situation, investors are selling the majority of their investments.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-future-of-cardano-coin-a-perspective\"><span class=\"ez-toc-section\" id=\"Future_of_Cardano_Coin_A_perspective\"><\/span>Future of Cardano Coin: A perspective&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite the fall in prices of ADA, Cardano has made some significant tie-ups in 2022, such as raising funds in ADA to plant 10 lakh trees, launching their fund-based platform DEX SundaeSwap &#8211; a decentralised exchange built on Cardano to help facilitate liquidity on Cardano network.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So far, we have discussed why Cardano\u2019s price is dropping and what are the future plans of Cardano stable coin. But as investors, does this mean that one should not <a href=\"https:\/\/zebpay.com\/in\/buy-cardano\" target=\"_blank\" rel=\"noreferrer noopener\">buy ADA<\/a> anymore or is now the right time to buy Cardano?\u00a0<\/p>\n\n\n\n<p>It is very important to <a href=\"https:\/\/zebpay.com\/blog\/dyor-do-your-own-research-for-crypto-traders\/\" target=\"_blank\" rel=\"noreferrer noopener\">research and study<\/a> on your own before buying anything. One should not only look at the current market situation but also read about future developments. If there is anything more important than investing in the right coin, it is investing via a secure crypto exchange. One such exchange in India is Zebpay, India\u2019s oldest Crypto exchange, which provides secure technology and a seamless trading experience. Start your journey by visiting <a href=\"https:\/\/zebpay.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zebpay<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a crypto trader, what if your investments were to increase by 100 times only to fall back to where they started from? Sounds like every crypto trader&#8217;s nightmare, right? Well, this nightmare is now turning into a reality for all crypto investors who have been bullish on Cardano\u2019s native token ADA. It delivered approximately [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17430,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17535"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=17535"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17535\/revisions"}],"predecessor-version":[{"id":26004,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17535\/revisions\/26004"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/17430"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=17535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=17535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=17535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}