Cardano (CRYPTO: ADA) price retreated for the fourth consecutive weeks and reached a record low, continuing a downward spiral that started in September 2021 when it peaked at $3.08. It dropped to $0.1608, with its market capitalization falling from a record high of $91 billion to $5.8 billion today.
Cardano Price Has Crashed Amid Ghost Chain Status
ADA price has sunk in the past few years, erasing over $85 billion in value, and making it one of the top disappointments in the crypto industry.
Cardano, which Charles Hoskinson created, became a popular name in the crypto industry during the first major crypto bull run in 2021. Its popularity was mostly due to Hoskinson, an Ethereum (CRYPTO: ETH) co-founder, which helped validate its promise.
Cardano was seen as a major Ethereum alternative because of its significant decentralization, lower carbon emissions, faster speeds, and lower transaction costs. Most notably, Cardano presented itself as the first peer-reviewed crypto project. It also made major claims, including its plan to bring Ethiopia's education sector to the blockchain.
Years after that happened, Cardano is now widely seen as a ghost chain. A ghost chain is a blockchain project that has little utility. In its case, most developers and users have avoided the project, giving it a small market share in key areas like decentralized finance (DeFi) and stablecoin industries.
For example, data shows that the total value locked in Cardano's DeFi ecosystem has crashed to $90 million from the all-time high of $700 million. Most notably, Cardano does not make substantial sums of money. It has made about $355,000 this year, a tiny amount for a crypto project valued at over $5.8 billion. Its stablecoin supply is less than $40 million.
Hoskinson and the team have made some efforts to revive the project. They launched Midnight, a privacy-based crypto project. Months after its launch, it is unclear whether Midnight has attracted any developers.
Cardano is also working on the Leios upgrade, which aims to boost its network by introducing parallel processing, while preserving its security. However, in an era where projects like Solana (CRYPTO: SOL) are handling thousands of transactions per second, it is unclear whether this upgrade will bring users to Cardano.
ADA Price Technical Analysis
Cardano price chart | Source: TradingView
Technicals suggest that the Cardano price may have more downside to go this year. It recently dropped below the crucial support level at $0.2300, the neckline of the head-and-shoulders pattern.
The token has sunk below the 50-week Exponential Moving Average (EMA), while the Percentage Price Oscillator (PPO) has continued moving downwards.
Therefore, the path of the least resistance for the token is bearish, with the next key target being at $0.100.
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