ADA holders perplexed as network clings to ‘hard work’ narrative with new…
Cardano’s promise of being ‘The DeFi Chain’ is nothing new under the sun, however, this promise may not be fulfilled anytime soon. Now, while the Cardano community is busy trying luck in the DeFi game, Cardano seems to be losing its faithful long-term investors.
Cardano and long-term holders
Cardano’s investors have been very loyal to their token, much more than that of SHIB’s and DOGE’s investors. These investors have not, for one moment, left the market despite the consistent price falls and crashes.
This is because their faith in Cardano as a blockchain is much stronger than the prevailing market conditions.
These people stood the test of the time when ADA crashed by over 47% on the charts adding to the ongoing downtrend since September 2021. The all-time high it marked then of $3.160 has since declined by more than 84.3%.
This has caused the investors to move around their assets in losses since the beginning of January 2022, affecting billions of ADA on the chain.
Consequently, the MVRV of Cardano plunged to a level of -4.6, the lowest it has been in 24 months (since April 2020). This clearly states that the token at the moment is undervalued.
Upset with the crypto market, some ADA holders even chose to sell. Long-term holders, who are usually considered the best friend of any cryptocurrency, panicked and sold a part of their ADA tokens and ended up destroying $1.27 trillion days in a single day on 3 May.
However, Cardano as a blockchain paid no heed to the same and remained unbothered by the panic selling since its focus is on just expanding the space.
For the same reason, the recently approved Fund 8 was voted upon to fund 367 proposals bringing the total number of projects funded by Project Catalyst to over 1,000.
The network already has over 20 DEXes and Liquidity protocols as well hundreds of other apps stemming from different branches of the crypto space.
This would serve as a massive boost for Cardano since, currently, the network only has $141.5 million locked on the chain. Now, when that changes for the better, the ongoing situation is also expected to improve as a result.