Cardano has suffered a significant drop in its total staked volume since its peak in March 2022. The Proof-of-Stake blockchain has lost over 76% of its total locked value over the past eight months. The drop is alarming given the recent Vasil hard fork of the decentralized crypto project.
The Cardano community welcomed the Vasil upgrade with high expectations. The hard fork should improve the performance of the blockchain and enable it to compete with other top DeFi projects. However, it seems that the update failed to bring much optimism to ADA holders.
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Loss of staking value for Cardano
Based on data from defi flame, Cardano’s Total Value Locked (TVL) has been steadily declining since its peak in March. It has now fallen below $80 million for the first time since January 2022.
More specifically, Cardano’s TVL was listed as $76.66 million at the time of writing this article. That number reflects a 76.49% decline from the all-time high of $326 million hit on March 24, 2022. This new number has taken ADA staking value to January 2022 levels.
Cardano currently ranks 27th among all blockchains in terms of total lock value (TVL). It is behind blockchains such as Bitcoin (BTC), Algorand (ALGO), Polygon (MATIC), Avalanche (AVAX) and Tron (TRX). Ethereum (ETH), which now has a market value of $32 billion, has a commanding lead.
The price of ADA is currently trading at $0.4289. | ADAUSD price chart from TradingView.com
Can Cardano reach $1?
ADA and most other cryptocurrencies suffered a dismal month in September. However, key updates and strong token fundamentals suggest that ADA could make a breakthrough in October. This is a generally bullish month for the cryptocurrency markets.
Still, it seems unlikely that Cardano can reach $1 in the next four weeks. This is because key technical indicators like the RSI and MACD are below 50indicating a negative trend.
Cardano is making waves in other areas
Despite the fact that Cardano’s staking value has dropped significantly, there are some positive developments around the project. For example, Cardano is among the top ten most popular cryptocurrencies chosen by banks that have disclosed exposure to the innovative asset class. The results were displayed of the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlements (BIS).
Not only that, Cardano has also won in the social media space. The number of daily social mentions of ADA had risen to a 90-day high of 52,470 by Sept. 23. That brings the total number of mentions to 2.32 million statistics from the social intelligence platform LunarCrush.
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Finally, Cardano has the support of several bulls who have expressed confidence in the project. The cryptocurrency community at CoinMarketCap is bullish on Cardano’s price through the end of October. Based on a surveyMembers predicted that ADA would trade at $0.5873 by the end of the month. This was 36.77% higher than the price of $0.4294 at the time of writing.
Featured image from Pixabay and chart from TradingView.com
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