Cardano Falls Out of Top 10 Cryptocurrencies
Cardano (ADA) has dropped out of the top 10 cryptocurrencies by market capitalization, as per data from CoinGecko. Once ranked third during the 2021 bull market, Cardano has been replaced by Tron (TRX) in the top 10 list.
Tron’s market capitalization now stands at $12.04 billion, while Cardano’s has fallen to $11.89 billion. This shift coincides with a broader market correction that has led most cryptocurrencies to dip below key support levels.
- Cardano’s price has been declining, decreasing by approximately 3% over the last seven days. The cryptocurrency has experienced a significant drop since reaching its all-time high in September 2021, falling by about 89% from $3.09 per coin to around $0.35.
Cardano’s Position Shift
The drop in ADA’s position can be attributed to various factors, including market trends and investor sentiment. The Crypto Fear & Greed Index is currently at 28, indicating that investors are still in a risk-off mode.
- Cardano has faced criticism for its low network activity, being labeled a “ghost network” with only 23,807 active addresses. In comparison, Ethereum has 350,000 active addresses, and Tron has 1.9 million. The total value locked in Cardano is $178.07 million, accounting for less than 1% of the DeFi market share.
Tron’s Success and Growth
In contrast to Cardano’s struggles, Tron has shown growth in recent months. TRX has risen by 5% today, 12% this week, and 17.2% over the past two weeks. Year-to-date, TRX has increased by 32%. Tron’s success is particularly evident in the DeFi space, where it ranks second in total value locked, with $7.8 billion, just behind Ethereum.
- Tron has processed $13.41 trillion in transfer volume since its network launch and holds $60.72 billion in Tether (USDT) on its blockchain, surpassing the amount on Ethereum.
Future Outlook and Market Correction
Despite Cardano’s current challenges, some community members remain optimistic about its future. They highlight that ADA has previously fallen to 17th in market capitalization but rebounded to the top four during the 2021 bull cycle.
The overall cryptocurrency market is undergoing a correction, with Bitcoin, the largest cryptocurrency by market cap, declining by 11% over the last 30 days and 2.5% in the last 24 hours.
Hot Take: The Evolving Crypto Market
The cryptocurrency market is dynamic and subject to fluctuations based on various factors such as market sentiment, network activity, and technological advancements. As Cardano exits the top 10 cryptocurrencies, other projects like Tron are capitalizing on growth opportunities and establishing a strong presence in the industry.
It is essential for investors to stay informed about market developments, conduct thorough research, and evaluate the potential risks and rewards associated with each cryptocurrency investment.
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