Why is the Price of Cardano (ADA) Down Today?

The price of the smart contract platform Cardano (ADA) is down by more than 8.7% over the last 24-hour period, and more than 11% over the past week. The cryptocurrency’s price seemingly dropped due to a specific factor affecting the wider cryptocurrency market.

Available market data shows that Cardano is currently trading at $0.56 per token, which means its market capitalization is now roughly $19.82 billion, making it the eighth-largest digital asset by market capitalization.

A recent report by Matrixport, a prominent firm in the crypto and financial services sector, indicated that the much-anticipated approval of a spot Bitcoin exchange-traded fund (ETF) in the United States might face a setback this month through a rejection from the Securities and Exchange Commission (SEC).

Despite significant momentum, with major financial institutions managing a collective $27 trillion in assets vying to list such an ETF, the SEC the analysts expect the regulator to reject the proposal this month.

The report negatively impacted the cryptocurrency market and led to a quick sell-off that shaved over $90 billion off of its market capitalization. Cardano itself was also affected by the sell-off.

ADAUSD Chart via TradingView

Cardano has meanwhile been seeing its development grow, with data from on-chain analytics firm Santiment showing it has maintained its top stop in cryptocurrency development activity after surpassing the “blockchain of blockchains” Polkadot ($DOT) and its public pre-production environment Kusama ($KSM).

Last year has seen an exponential growth in the Cardano network, as evidenced by IOG’s development reports. The report highlighted the launch of 152 projects with an additional 1,307 in the development phase on the network. The Cardano platform has processed 79.7 million transactions, indicating a rise in its adoption and usage.

In terms of token metrics, the report disclosed that there are 9.1 million native tokens in circulation within the ecosystem, regulated by 81,621 token policies. Furthermore, the implementation of Plutus scripts, a toolkit for smart contract development, has achieved 6,260 deployments for version 1 and 4,981 for version 2. This underscores Cardano’s consistent advancement in the deployment and execution of smart contracts.

Featured image via Unsplash.

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