Cardano (ADA) Down By 11% Despite Entry Into The Sandbox
March 09 2023 - 12:30PM
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The last few weeks of the crypto market have been marked by steady
losses, with most assets experiencing a decline in value. ADA, the
native token of the Cardano blockchain and the 7th biggest
cryptocurrency, has been one of those tokens suffering a
significant hit in these recent times. According to data from
CoinMarketCap, Cardano (ADA) has plummeted by about 10% in the last
seven days, showing a worse performance than other major altcoins,
including Ethereum (ETH), Binance Coin (BNB), and Tron (TRX).
Interestingly, ADA’s decline over the last few weeks has been
consistent even amidst news of a historic milestone for the Cardano
network. On February 28, Clay Nation, a Cardano-NFT project,
announced its upcoming integration with The Sandbox, one of the
most popular metaverse games boasting of over 201,000 monthly
players. Related Reading: Bitcoin Dealt Another Round Of
Blows, Is The Bear Market Back? Following implementation, this will
be the first time a Cardano-based project will be integrated with
the prominent P2E game. While this news generated some excitement
among the Cardano community, it has so far had no significant
positive effect on the downtrend of the ADA token. At the
time of writing, ADA is trading at $0.31 and has gone down by 2.16%
in the last 24 hours. On the bright side, its daily trading volume
is on the rise, gaining by 13.15% to hit its current value of
$309.9 million. ADA trading at $0.32 | Source: ADAUSD chart
on Tradingview.com Behind ADA’s Fall Generally, the crypto
market has been in a bearish state for weeks now due to the ongoing
financial woes of the crypto-friendly bank, Silvergate.
Following the crash of FTX in November, Silvergate had to pay out
about $8 billion in withdrawal orders, leading to the bank
recording a loss of $1 billion in the fourth quarter of 2022.
After a delay in the release of the Silvergate bank’s annual report
for 2022 caused much market panic last week, the Silvergate Capital
Corporation – the bank’s parent company – confirmed many
investors’ fears on Wednesday as they announced their intention to
close down their banking firm operations and liquidate all its
assets. The ongoing collapse of the Silvergate bank has led to a
high level of negative sentiment among investors leading to many
assets, including Cardano experiencing a steep decline in value.
However, that does not seem to be the only issue plaguing the
Cardano network. Related Reading: Lido (LDO) Plummets Over 20% In
Past Week, Here’s Why Cardano (ADA) Faces Internal Criticisms Over
Governance Proposal Recently, Cardano has gotten much criticism
from its users and various web 3 enthusiasts due to a current
governance proposal that many believe threatens the
decentralization of the network governance. According to a
tweet by popular Web 3 Advisor Vannessa Harris, the approval of
proposal CIP-1694 – as it is known – will allow Input-Output Global
(IOG), developers of Cardano, to exhibit a domineering influence
over the Cardano network. In addition, Harris also stated the
new governance mechanisms would prevent regular ADA stakers from
voting and participating in governance. In response to these
claims, Charles Hokinson, Cardano Founder, stated that the critique
was wrong and only spreading Fear, Doubt, and Uncertainty.
Meanwhile, many members of the Cardano community have called for a
Twitter space for the project developers to address these
concerns. Featured Image: Investing.com, chart from
Tradingview
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