By Sam A 
ADA has recently risen by a 4 figure figure. falling down to as low as 81% decline in its value, where the current price is at $0. 3279. Cardano is ranked among the 11 biggest cryptocurrencies to date, and currently, the market cap is around $11. Of those, 79 billion are similar to the one that declined in the last 24 hours. Such a shift in value in combination with a high increase in trading volumes should elicit questions with regards to the influencing events in Cardano and its eventual impact on the investors.
Another interesting factor about Cardano’s present market profile is the heightened trading volume that has been observed recently. In the last one day trading activity has increased by 83%. 84%, reaching approximately $241. 30 million. As it typical of most emerging economies, the volume to market capitalization ratio is slightly above average coming in at 2. 04% signifying that the company’s trading has been highly active than its market capitalization. This increase in the volume of trading activity means that there was either increased attention or fluctuation on Cardano, which can be due to numerous reasons such as market speculation, investors’ reactions to current events or general market swell. The various trading volumes could therefore cause flucatutions in prices since it is evident that high trading volumes can lead to large price fluctuations.
As of now, the Circulating supply of Cardano is 35,960,643,044 ADA which is 79. It holds 91% of its total ADA coins in circulation having a total of 37,170,426,658 ADA in circulation. Thus, even though the circulating supply is 27. 18 percent, which is relatively high for an asset with maximum supply limited at 45 billion ADA, it can be inferred that a significant part of the tokens is al Their. This high circulating supply has the potential to stabilize the prices in the long run since there is very little room for the creation of more of it. But at the same time it is also a disadvantage that if anything changes, for instance, market demand or investor attitude, the effect on the token’s price will be stronger.
Hence, the fully diluted market cap of Cardano, with an approximate figure of $14. 75 billion, equals the market capitalization if all the ADA that exist in the maximum supply were in circulation. The comparison between the present one and the fully diluted one gives the glimpse of idea that though there is possibility of expansion, but the effect of such token emission is restricted to some extent. It may give some stability and thus may be a sign for relative robustness but it also shows the market’s direction and how sensitive it may be to changes in the demand or a general market situation.
There are several reasons that may have led to Cardano’s downfall especially in the recent past. It is very often that broader market conditions & macroeconomic factors are responsible for the performance of specific cryptocurrencies. The cryptocurrency market has always been highly volatile, and since Cardano is one of the largest-cap assets it is not immune to follow the overall tendencies of the market. Biddable equity, legal factors or novelties in the world economy also have influence on determining the price of the token.
Other important elements for Cardano are project specific, that include the following: Any setbacks, issues with technology or competition of Ethereum platform, which is both scalability and interoperability, and smart contract sustainability based, are capable of leading to loss of confidence among investors. This might be attributed to the fact that the recent volumes of trading might be in response to certain pieces of news or events regarding the Cardano ecosystem or lack of them in the market.
Based on the circulating supply, ADA’s total supply, and the Maximum supply, it can be argued that market forces have a bearing on the price of ADA. Since most tokens are already issued, movements in demand and supply factors, exogenous or endogenous, can reshuffle the token’s value within a short period.
All things considered, in the light of Cardano’s recent. It is expected that the 81% drop is due to both factors relating to the wider market and conditions that are specific to the projects. The circulation volume implies that more trading takes place with the crypto-currency and this coupled with high circulating supply may present some difficulties in the market. Market conditions and project progesses should be closely monitored to be able to see the long-term prospects of the Cardano while investing. Still, the recent decrease can be considered essential, and still, attractive for those who invest in the Cardano platform and trust its further development and updates.
Riya M