Cardano (ADA) – like all other digital assets – saw a noticeable weakening yesterday that came about in together with Bitcoin’s drop from highs of $12,000 to lows of below $11,000.
ADA has been able to find solid backing at $0.13, bulls have fortified this level on numerous instances all through recently. Regardless of not forming bearish technical developments, some investors are disturbed about the Cardano blockchain’s relatively low operation volume.
One analyst is stating that associated with other chains with comparable volumes; it recommends that its existing market capitalization could be twofold as large as it should be realistically valued.
That being assumed, the latest Shelley mainnet improvement could be an influence that resolves this roadblock and supports growth both the utility and the deployment of the blockchain.
Cardano plummets together with the crypto market but catches resilient support at $0.13
At the time of this report, Cardano’s price is trading just under seven percent at its current price of $0.135. This results in a noticeable weakening from daily highs of $0.148, which was set at the top of its latest rally.
ADA has been closely following the price action seen by Ethereum and Bitcoin over the past numerous days, which is what made it inclined to noticing the sharp decline overnight.
Bitcoin dived from highs of $12,000 to $11,000, while Ethereum saw an even more severe drop that sent it from $415 to $300.
Cardano has since been ready to find stable support for almost $0.13, with it posting various strong resistance to this price level during the past couple of days.
ADA’s moderate transaction volume attention to some investors
While referencing one investor’s criticisms regarding Cardano only seeing one transaction every ten seconds, Kelvin Koh – an ex-partner at Goldman Sachs who posts under the name “SpartanBlack” – emphasized that he considers ADA overrated.
He remarks that its current $4 billion market cap could be cut in half while remaining “generous” – given its absence of continuous use.
“Cardano’s valuation (liquid market cap) makes absolutely zero sense at $4.4 B. A $2 B market cap ballpark for ADA is being generous in the current market.”
Koh moreover leads to the estimates of its nearest rivals as an anchor point for its favorable rating, which ranges between $1 billion and $2.9 billion.
ADA unquestionably has a more substantial population and investor base than these other tokens, which is part of the cause of why its price is higher.
Investors may also be speculating on the probability that it will soon see a broad introduction of utility following the announcement of the Shelley mainnet upgrade.
CryptoSlateb lately announced that Charles Hoskinson – the CEO of Cardano parent company IOHK – revealed that he foresees “hundreds of assets” to be operating on the blockchain in the upcoming 12 months.
“This time next year I predict there will be hundreds of assets running on Cardano, thousands of DApps, tons of interesting projects and lots of unique use and utility…”
It appears that the general crypto market concurs with this belief is being valued at a far higher rate than its competitors.