- Cardano price crashed by more than 95% from its all-time high.
- ADA could be a breakout cryptocurrency in 2023.
Cardano price had a bad year in 2022 despite numerous project milestones. ADA plunged from $3 to about $0.25, costing investors over $80 billion. The meltdown was one of the worst in the blockchain industry. So, what next for Cardano in 2023?
Cardano ecosystem challenges
Cardano, like other cryptocurrencies, had a difficult year in 2022 as the network faced numerous challenges. After showing remarkable growth in 2021, investors started to question the value of the platform because of its remarkably small ecosystem.
Further, there were questions about the claims made by Input Output (IOHK) and Cardano Foundation. For example, in 2021, Cardano announced that it was working with Ethiopia’s Education ministry to digitize the education sector using its blockchain technology. It is unclear whether the project is continuing or not.
At the same time, there are concerns about the size of its ecosystem since Cardano’s ADA still has a market cap of over $9 bilion. According to DappRadar, Minswap is the most active dAPP in Cardano’s ecosystem. In the past 30 days, it had less than 2,000 Unique Active Wallets (UAW) and handled $54 million of volume.
SundaeSwap handled $10 million while JPG Store handled $8.7 million. Wingriders and MuesliSwap handled $6.29 million and $2.05 million, respectively. Additional data by DeFi Llama shows that the total volume locked (TVL) in Cardano stands at $72 million, down from its all-time high of over $500 million.
Cardano’s NFTs are not doing well. Data by CryptoSlam shows that Cardano handled $7.9 million worth of NFTs in December, the lowest level on record. It handled over $9.7 million in the same month in 2021. At its peak, Cardano was handling NFTs worth over $62 million.
Therefore, Cardano needs a miracle to bounce back in 2023. It needs to have more adoption during the year for it to recover.
Cardano price prediction
The daily chart shows that ADA price has been in a major sell-off in the past few months. It has crashed by more than 95% from its all-time high. The coin moved below the important support level at $0.40, the lowest level in May and July 2022.
Cardano moved below all moving averages. The Relative Strength Index (RSI) and Stochastic Oscillator drifted upwards and are close to the overbought level. Therefore, at this point, the risk/reward ratio favors bulls in 2023.
I suspect that Cardano will rebound in 2023 as investors buy the dip. If this happens, the next key level to watch will be at $1.0.
