After Cardano Halved, ADA is Acting Quite the Tease and It’s Disturbing-Cryptocurrency.Mohoagd


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The coin could fall even farther as a more speculative alternative crypto.

You could be tempted to bet the farm on Cardano  if you remove all of the standard components that govern market sentiment for any publicly marketable asset, especially at current pricing. Cardano tokens are currently available for roughly 55% below their all-time high at the time of writing.

Pavia, a gaming app, debuted on the Cardano blockchain on January 15, being the first metaverse project ever. According to CoinDesk, Pavia released "100,000 'land parcels,' each minted as a unique non-fungible token (NFT) with unique 'coordinates.' Over 60% of these parcels were pre-sold in October and November 2021, with the remainder scheduled to be sold in the first quarter of 2022."

Non-fungible tokens, or NFTs, are electronic tokens that represent something unique, such as a digital piece of art or a website domain name. To execute and validate these tokens, they rely on cryptocurrencies like Ethereum  or Cardano.

A metaverse is a virtual world in which people can interact digitally in the same way they do "IRL" — in real life.

If that wasn't enough to pique your interest in ADA coins, another CoinDesk story stated that the Cardano Foundation — a non-profit organization in charge of the network's development — "reached its initial objective of planting nearly 1 million trees." Clearly, that has some environmental, social, and governance (ESG) clout, which can readily entice youthful money.

The essential issue, in my opinion, isn't so much the granularity of these news articles. You might not be familiar with NFTs, blockchains, metaverses, or anything else. And if you don't know about these things, you probably don't realize that Cardano is a proof-of-stake cryptocurrency.

Whatever. The takeaway is that many people are interested in what I just said. Even better, the network's creators are making all the correct steps. So, why isn't the ADA index rising?

Nervous Times for Cardano Backers

Normally, I don't trawl through the muck of investment-related social media forums. However, a Reddit post — on the r/CryptoCurrency forum — neatly summarized my feelings regarding digital land and the larger metaverse concept.

According to the user name "stlloydie," "Without conducting any study and simply going with my gut (like a genuine crypto investor should), the entire concept sounds so outrageously foolish that you'd have to be a moron to buy 'fake land' with real money."

The Redditer then added the punchline, "As a result, it will almost certainly be extremely profitable."

Exactly! While I believe that spending big money on virtual real estate is just insane, without any sarcasm or nuanced undertone, you can profit from this irrational market. Buying Cardano at a (relative) discount would make sense in this situation.

The difficulty is that cryptocurrencies are inextricably linked to the market forces that determine asset prices. As a result, while the Cardano price rose as a result of these earlier occurrences, market sentiment swiftly soured. 

In fact, I just sent out my weekly crypto update, which included a mention to ADA. I cautioned readers about its ephemeral nature, and sure enough, ADA is in trouble now.

True, cryptos move in a haphazard manner, and Cardano is no exception. However, I am concerned that proponents of ADA refer to a plethora of basic drivers. Nonetheless, none of these criteria has persuaded investors to stay in the game in the hopes of higher returns in the future.

Investors are out as soon as they see green print in Cardano or any other crypto, according to what I've seen over the last week. They want their fiat (or stablecoins) and they’re heading for the nearest exit. If such sentiment continues, you don’t want to be the one holding the bag.

It’s All Relative

You'll hear about crypto commentators claiming that the weak hands have been pushed out of the market over the next few days (if not weeks or months). As a result, if you have some patience, your Cardano (or favorite crypto) holding will eventually appreciate in value.

That could be the case, given that we're down 55% from all-time highs. However, such reasoning is just relative when it comes to implying that the bad news is fully baked in.

While a 55 percent drop is significant, prominent cryptos have been known to drop by as much as 80 percent during particularly ferocious bear markets. Given that Cardano is a more speculative alternative cryptocurrency, it may fall even higher – perhaps 70%, 80%, 90%, or even more.

Of course, that's not what I'm looking for. But I don't want to mislead you into thinking you're safe. This is a risky period for cryptos, so make sure you're making financial decisions based on what you're comfortable with, not on the opinions of others who may or may not be correct.


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