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NAIROBI (CoinChapter.com)— Cardano’s native token, ADA, has dropped out of top 10 cryptocurrencies by market capitalization. Since January, ADA has steadily lost market share after a modest recovery from the 2022 bear market. Its current market cap is $11.9 billion, placing it behind TRON’s TRX, according to recent data.
Performance of the top 10 cryptocurrencies by market capitalization. Source: CoinMarketCap
This decline happens alongside a broader market correction. Bitcoin (BTC) has dropped 11% in the last 30 days, putting additional pressure on ADA and other altcoins, and leading to reduced investor risk appetite.
Market Dynamics and Investor Sentiment Weigh on ADA
ADA’s decline stems from shifting market dynamics and weak investor sentiment. The Crypto Fear & Greed Index is in the “Fear” zone at 28, indicating ongoing caution among investors, despite a slight improvement from last week’s “Extreme Fear” level.
Bitcoin Fear & Greed Index shows current sentiment as Fear at 28. Alternative.me
Investor sentiment is further dampened by Cardano’s sluggish network activity. Despite being one of the pioneering blockchains to implement a proof-of-stake consensus algorithm, Cardano has struggled to gain traction in the decentralized finance (DeFi) space.
Cardano ranks 28th in TVL with 1-month decline. Source: DefiLlama
According to DefiLlama, Cardano has only 23,807 active addresses, a stark contrast to Ethereum’s 350,000 and Tron’s 1.9 million. The total value locked (TVL) on Cardano’s network stands at $178.07 million, representing less than 1% of the total DeFi market share. This places Cardano at 29th in terms of TVL, far behind top-ranking chains like Ethereum, Solana, and Tron.
Cardano’s Market Dominance Declines After Smart Contract Launch
Cardano’s ADA has declined steadily since launching its smart contracts in Sept. 2021. At its peak, ADA traded around $3.00, driven by anticipation of the launch. This pushed ADA’s market cap to $77 billion, making it the fourth-largest cryptocurrency at the time.
Cardano (ADA) price chart with Charles Hoskinson’s tweet highlighted. X
As of Aug. 20 Cardano (ADA) trades at around $0.3364, reflecting a 0.73% decrease over the past day. Its market cap has dropped by 0.74%, now standing at $12.09 billion. The 24-hour trading volume is $202.55 million, with a volume-to-market cap ratio of 0.0168.
Cardano (ADA) 1-day price chart on Aug. 19, 2024. Source: CoinMarketCap
ADA’s market dominance, which measures its share of the total crypto market, has sharply fallen. In early 2021, ADA had a dominance of 0.66%, which rose to 4.24% during the peak of the bull market. Today, its dominance has dropped to 0.58%, highlighting the challenges Cardano faces in maintaining its market position.
The post Cardano News: ADA Falls Out of Top 10 Cryptocurrencies by Market Cap appeared first on CoinChapter.
