With dog coins like Shiba Inu reaping quarterly ROIs of 926.07 percent vs USD, legitimate projects like Cardano are being overlooked. They are observing subdued price action and thus appear to have lost their allure. But it’s not just newer projects that seem to have stolen the spotlight from ADA.
In fact, when it comes to ROIs, even Bitcoin offered higher returns than Cardano at the time of writing. So, now that the fifth-ranked coin appears to have lost its market clout, is it truly time to reconsider Cardano’s place in your portfolio?
If you’re looking for more short-term or mid-short-term gains, the answer is yes. While if you’re in it for the long haul, it appeared that Cardano was still worth your time and money. But, with ADA looking rather boring on lower and higher time frames, how can the alt redeem itself, and what is preventing it from rallying?
Is an independent trajectory a curse?
Unlike many other altcoins that rely on BTC gains to rally, smart contract platforms such as Cardano and Solana have seen rather independent market trajectories and a general dissociation from the larger market. Notably, Cardano’s rise coincided with BTC’s consolidation.
Indeed, as Bitcoin oscillated above the $60K mark and reached an ATH over the last few weeks, ADA’s trajectory appeared to be a letdown. Notably, the ADA’s correlation to BTC was at an all-time low at the time of writing, having been at an all-time low since August 2019.
As a result, while ADA’s separation from the market is widely regarded as a boon, it was not. ADA has seen ATHs and higher gains whenever the correlation has been relatively higher, so it appears that this dissociating trend did not work out well for ADA.
HODLers must return to the game.
According to ADA ownership statistics, retail volumes are the highest in terms of concentration, while whales are the lowest. At the time of writing, retail volume made up 73.36 percent of the crowd, while whales made up 9.82 percent and investor volumes made up 16.82 percent.
Furthermore, the weighted average time spent by whales has decreased since 2020. This emphasized a lack of conviction to HODL, which could have been influencing ADA’s price recently.
Nonetheless, the project has been rather active in terms of development, with over 3260 GitHub commits in the last week, which was higher than most other cryptocurrencies, implying developer commitment to the project.
Furthermore, it was recently revealed that Cardano uses 0.01 percent of the energy that Bitcoin does, making it one of the greenest blockchains. Overall, while ADA’s long-term prospects appeared promising, the company needed whale support and more conviction in terms of HODLing behavior in the short term.