Altcoins
Cardano’s ADA is Still Severely Overvalued Despite the Crash
Cardano price continued slumping as the crypto meltdown accelerated. ADA plunged to a low of $0.25, which was significantly lower than its all-time high of $3. Its market valuation has slumped to over $8 billon, making it the 8th biggest cryptocurrency in the world.
Why is Cardano worth $8 billion?
Cardano is one of the biggest cryptocurrencies in the world. At its peak, it had a market cap of over $40 billion, making it a bigger financial asset than large companies like Zoom Video and United Airlines.
Recently, the coin’s price has plunged from $3 to about $0.25. Still, it maintains a market cap of over $8 billion, which is a lot of money. For example, well-known companies like Fastly, Moelis, and Dropbox are valued below that.
So, there are still concerns about Cardano’s valuation considering that its ecosystem is one of the weakest. In DeFi, Cardano has a total value locked of less than $60 million. In contrast, Aptos, which was launched recently, has a TVL of more than $50 million. It is much smaller than other platforms like Moonbeam, Fantom, Mixin, and DeFiChain among others.
The only bright part of Cardano is in the NFT industry, where it is the fourth-biggest chain in the industry. However, even in this sector, the volume has been in a strong bearish trend. After transacting NFTs worth $23 million in October, it handled $8.9 million in November and $6.9 million in December.
Therefore, it is hard to justify a $8 billion valuation of Cardano. This is despite the coin’s significant crash from $3 to $0.25. Besides, competition has risen in the sector, with platforms like Aptos and Kadena having better features.
Cardano price prediction
The four-hour chart shows that Cardano price has been in a strong bearish trend in the past few months. It crashed below the important support level at $0.3296, which was the lowest level in October. The coin has moved below all moving averages. The Average Directional Index (ADX) has moved higher, signaling that it has the bearish momentum.
Therefore, ADA price will likely continue falling in the near term. If this happens, it will likely move below the important support at $0.20.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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