The cryptocurrency market is getting hit with one other week of huge sell-offs, and Cardano‘s (CRYPTO:ADA) ADA token has been caught up within the adverse market momentum. The cryptocurrency was down 11.2% over the past week of buying and selling as of 4 p.m. ET on Friday, in keeping with information from S&P Global Market Intelligence.
Solely a handful of the top-50 largest cryptocurrencies managed to finish the final week of buying and selling within the inexperienced, and most have been down double digits throughout the stretch. Along with the specter of rising regulatory dangers, the crypto market can be dealing with bearish catalysts associated to potential battle between Ukraine and Russia, shifting macroeconomic circumstances, and disappointing steering from some distinguished, growth-dependent firms.
The Biden administration is reportedly readying an govt order that might introduce new laws on cryptocurrencies, and buyers seem like sweating the potential influence. The crypto market has additionally been impacted by a pronounced investor shift away from high-risk cryptocurrencies and shares. Weak steering from firms together with Peloton, Netflix, and Tesla, and the specter of rising rates of interest have additionally added to the bearish momentum, and Cardano’s ADA token has been feeling the squeeze.
Along with the lengthy checklist of things prompting sell-offs for the broader cryptocurrency area, it additionally seems like some network-specific elements may very well be pushing Cardano’s token worth decrease. The current launch of the SundaeSwap decentralized buying and selling trade on Cardano has led to report utilization on the community, however this has additionally led to some considerations about its blockchain community’s scalability.
Cardano’s ADA now has a market capitalization of roughly $35 billion, and it ranks because the sixth-largest cryptocurrency by valuation. Even after large sell-offs in current months, the token remains to be up greater than 200% over the past 12 months of buying and selling.
With Bitcoin, Ethereum, and Solana‘s respective cryptocurrency tokens additionally down 1%, 8.1%, and 22.5%, respectively, over the past week of buying and selling, it is doubtless that market momentum is the first driver of ADA’s current valuation slide. Cardano’s distinctive blockchain community and options give it particular person pricing catalysts, however buyers ought to transfer ahead with the understanding that the token will doubtless proceed to commerce in keeping with tendencies for the broader crypto market — at the very least within the close to time period.
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