Cardano’s assurance to be a DeFi Chain isn’t new in today’s marketplace. However, the networks might not fulfill this promise anytime soon. As the Cardano community focuses on the DeFi game, ADA loses its loyal (long-term) investors.
Cardano and Its Long-Term Investors
Cardano has had more faithful investors than the likes of Shiba Inu and Dogecoin. ADA holders have never quit the marketplace regardless of consistent price dips and crashes. That shows their loyalty to Cardano as a lucrative blockchain outplays the current conditions in the crypto spectrum.
These individuals stood all the tests, even when Cardano lost more than 47% to add to the consistent plummets since September last year. For now, the altcoin stays over 84% down from its $3.160 all-time higher.
The massive declines mean investors moved their tokens in losses since early 2022, affecting enormous ADA assets on the chain. As a result, Cardano’s MVRV dropped towards -4.6, hitting its lowest level in two years – since April 2020. That shows that the altcoin on undervalued conditions at the moment.
Meanwhile, that saw investors upset with the market, choosing to sell their ADA coins. Long-term investors, often the best friend to any crypto, indulged in panic-selling, destroying about $1.27 trillion on May 3 alone.
Nevertheless, Cardano blockchain stayed unconcerned with the panic-selling activities as it concentrated on expanding its space. For that reason, the platform voted for the lately approved Fund 8 to finance 367 proposals. That brought the total Projects Catalyst’s funded projects to more than 1,000.
The platform already boasts more than 20 Decentralized exchanges and liquidity protocols plus hundreds of different applications coming from different angles of the cryptocurrency industry. That would boost the Cardano blockchain since it currently has $141.5 million locked. The ongoing conditions will likely improve if this metric shifts for the better.
For now, the broad crypto space flashes weakness, with bears on the driver’s seat. Cardano traded with an 8.04% 24hr drop at $0.516. Meanwhile, the global cryptocurrency market capitalization stands at $1.24 trillion, dropping 3.22% over the past day.
It might be interesting to see Cardano’s upcoming moves. Stay tuned.