Cardano Is Tanking Harder Than It Deserves

Cardano - Cardano Is Tanking Harder Than It Deserves

Source: Stanslavs / Shutterstock

Cardano (ADA-USD) crypto has been one of the worst-hit digital assets. It has fallen from a recent peak of $1.24 on March 28 to below 50 cents as of May 12. In fact, a month ago, on April 10, ADA crypto was still trading above $1 per token. Since then it is down 50% in the past month.

But the utility and use cases that Cardano provides have not decreased this much. In fact, I recently pointed out that Cardano looks too cheap compared to its Total Value Locked (TVL).

TVL represents the total amount of money tied up in staked crypto assets. These are deposits with smart contracts and yield and staking apps. As TVL increases, a crypto’s price tends to rise, as well.

Cardano’s TVL is still high. shows that the TVL is $114.86 million compared to only $3.2 million as of Jan. 20.

However, on April 18 when I wrote the previous article, its TVL was at $208.6 million. So its TVL has fallen by close to $100 million in the space of less than one month. People have been exiting ADA crypto digital assets and wallets. Along with avoiding the market they are getting out of digital assets.

The problem, though, is that there is a direct correlation between the direction of TVL and the price of Cardano. Right now the direction is down and the effect is negative on the price of Cardano.

Where This Leaves Cardano Now

However, Google Data Studio shows that the number of Cardano crypto digital wallets has continued to increase over the past month. So this is at odds with the information about the number of TVL assets falling.

In other words, if more and more people set up wallets using a Cardano blockchain platform app, it seems likely that the Cardano digital assets are rising as well.

So, this implies that Cardano is likely to begin rising again and that it might be undervalued right now. Long-term investors should take a closer look at the upside prospects for the Cardano blockchain platform.

On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Mark Hake writes about personal finance on, and

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC