2022 can be described as the harshest year for cryptocurrencies as a considerable number of them lost more than half of their values. The level of distrust increased drastically and many companies went bankrupt. Many cryptocurrencies had to experience a major correction as well. When talking about Bitcoin, the token lost more than 67.8% of its value. The effects of the crypto winter were even greater on altcoins. Despite Cardano (ADA) ranking in the top 10, it managed to experience a decline of nearly 84% in its value throughout this year.
At the time of writing, Cardano (ADA) is trading for $0.2516 and has a total market cap of $8.68 billion. The current price of the cryptocurrency marks a 2.56% decline in the previous 24 hours, 2.67% over the last week, and 21.07% since last month. Despite these losses, many Cardano (ADA) holders might believe that the token has hit the bottom. At the same time, many of them believe that the token might eventually recover any time soon. Most analysts believe that Cardano (ADA) would most likely suffer more losses before it eventually rises back up.
Cryptocurrencies lost their value for a great number of reasons. The crypto winter was initially thought to span over a few weeks, but things took a turn for the worst. The FED jacked up interest rates with the intention of controlling inflation many times this year. The collapse of FTX made the situation even dire. Many investors ended up losing confidence regarding investing in crypto as a result of these factors.
Is There Hope for Cardano (ADA) in 2023?
It is expected that Cardano (ADA) would witness a considerable increase in the stablecoins, NFTs, and DeFi sectors. When the performance of the crypto is observed over the previous years, and believing history might repeat itself, things might change. 2023 might eventually prove to be a good year for both the token and those who purchased it. It is also widely believed that the fundamentals of Cardano (ADA) would push its price upwards. This would only happen if the market returns to a more bullish condition.
Some analysts believe that a challenge for Cardano (ADA) is to achieve the $0.45 mark by the start of the next year. The bulls might be responsible for boosting the token’s market cap till it reaches its peak price of an expected $0.55. The situation in the crypto market might improve as soon as some factors ease out. All an investor can do is wait, watch and invest carefully.