Cardano (ADA) Plummets: 5% Price Crash Amidst $1.6 Billion Crypto Bloodbath
Cardano (ADA) has suffered a significant 5% price plunge in the last 24 hours, mirroring a broader market correction that has wiped out over $1.6 billion from the crypto ecosystem. This sharp decline has dampened trader enthusiasm and cast a shadow over previous bullish projections, particularly after Bitcoin (BTC) surged past $90,000.
ADA’s 18% Weekly Losses: A Sign of Troubled Times?
Cardano has been one of the hardest hit among the top 10 cryptocurrencies by market cap, currently trading at $0.86 with a market cap slightly above $30.4 billion. This represents an 18% decline over the past seven days, extending a period of losses following recent gains.
Read more: Cardano Smart Contract: 100,000+ Contracts Fuel 52.79% Surge!
Cardano Foundation Hacked: 99% Scam Token Plunge
The downward trend in Cardano’s price was exacerbated by the recent hack of the ADA Foundation’s X (formerly Twitter) account. Malicious actors exploited the compromised account to promote a fake token, ADAsol, and falsely claim that the Cardano Foundation had ceased support for the ADA token.
The ADAsol scam token quickly generated $500,000 before plummeting by a staggering 99%. The hackers also falsely claimed that the Securities and Exchange Commission (SEC) had filed a lawsuit against the Cardano Foundation. This coordinated attack instilled fear and uncertainty within the Cardano community.
Read more: Cardano Smart Contract: 100,000+ Contracts Fuel 52.79% Surge!
A Slowing Ecosystem: $1.6 Billion in Liquidations
The past 48 hours have witnessed a decline in the performance of numerous crypto assets. This downward trend is also reflected in the decentralized finance (DeFi) sector, with the total value locked (TVL) on ADA plunging 21% from an all-time high of $708 million.
The decrease in platform activity has led to a significant drop in overall transactions, impacting the broader crypto ecosystem. Liquidations have reached $1.6 billion since the last market dip, and daily trading volumes remain in the red. While institutional inflows into Cardano funds reached $5.2 million last week, this has not been enough to offset the prevailing bearish sentiment.
Read more: Cardano Whales Go on a 20 Million ADA Buying Spree!
Conclusion: A Challenging Period for ADA
The recent 5% price crash and the broader market correction have created a challenging environment for Cardano. The hack of the ADA Foundation’s X account and the subsequent 99% plunge of the scam token have further eroded investor confidence.
While institutional inflows provide a glimmer of hope, the prevailing bearish sentiment and the declining performance of the DeFi ecosystem pose significant challenges for Cardano’s future growth.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
