Cardano has faced significant challenges amid the broader crypto market downturn, marked by declining DeFi activity and falling token valuations.
Cardano's TVL Decline
The price of Cardano (ADA) dropped by 15% over the past week due to harsh market conditions. According to Coinglass, Cardano saw over $33 million in liquidations, with $27.7 million from investors closing long positions in the last 24 hours. DeFiLlama reports that the total value locked (TVL) in the Cardano network fell to $355 million from $593 million earlier this year, indicating a loss of about $238 million in assets.
Impact of Price Fluctuations
The current market situation led to declining activity in the Cardano network, coinciding with a drop in token valuations. While ADA remains under pressure, traders should watch for potential increases in DeFi activity that could trigger a market rally.
Current Trends and Prospects
The recent Plomin hard fork has excited Cardano supporters, anticipating its positive effects on ADA accumulation and price trends. The activity of major ADA holders remains crucial as their significant purchases could enhance market trends.
Ongoing trends may deepen risks and open new perspectives for Cardano amid current market shifts.
