Cardano has a large circulating supply, with 45 billion ADA coins eventually entering the market. The sheer volume of available coins means that significant price movements require substantial market activity and demand. Without continuous, large-scale buying pressure, the price remains relatively stable.
A significant portion of ADA is locked in staking, contributing to network security and earning rewards for holders. While this is beneficial for the ecosystem’s stability, it reduces the available supply for trading, thereby dampening price volatility. Investors who stake their ADA are often long-term holders, less likely to engage in frequent buying or selling, which keeps price movements minimal.
Cardano faces stiff competition from other blockchain projects like Ethereum, Solana, and Binance Smart Chain. These competitors often have more aggressive marketing strategies, faster development cycles, and higher adoption rates, leading to greater investor excitement and price volatility. Cardano’s deliberate, long-term approach can sometimes be overshadowed in a market driven by quick gains and hype.
The Cardano community is known for its strong belief in the project’s long-term vision. This community’s commitment to holding ADA rather than trading it frequently results in lower market activity. While this demonstrates confidence in Cardano’s future, it also contributes to the current low and steady price.
