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Wen ADA Moon? Hoskinson Sheds Light On The Bear Market As Cardano Network Takes Big Leap

Cardano 'Large Holders' Double ADA Holdings Within Days As Prospects Of Rapid Price Increase Mounts
  • Cardano’s founder has stated that the network can do little in the face of the prevailing bear market facing cryptocurrencies.
  • Cardano’s dev team has an interesting streak of innovations but the price is down by over 80% from its all-time high.

Cryptocurrencies are writhing under a strong bearish sentiment over the last couple of months. Cardano (ADA) appears to be one of the hardest hits of the lot with the project’s founder stating that “no announcement makes a difference”.

Bear market reigns supreme

Charles Hoskinson, Cardano founder, has bared his mind over the state of the cryptocurrency markets. Hoskinson confirmed that the markets are neck-deep in bearish territory and Cardano’s stellar innovations are being overshadowed by broader macroeconomic factors.

He claimed that Cardano had “gotten all the fundamentals right” with the network making moves to be faster, more decentralized, and attract more users to the ecosystem. A Twitter user asked Hoskinson why ADA continued to slide despite all the innovation.

“Yes, it’s called a bear market. That’s what happens. Nothing changes it. No announcement makes a difference,” said Hoskinson. “Cardano could cure c*ncer, give you a personal poker-playing robot that also drives grandma to church on the weekends, and we’d still fall.”

Cardano prides itself on being an innovative network in the industry but it has not stopped critics from poking holes in it. The network has been called out for the slow pace of its development with smart contract functionality coming live only last year. Some critics have gone all the way to argue that Cardano’s innovativeness is all hype stirred by the project’s founder.

He replied to critics saying that Cardano was the first third-generation blockchain to launch a proper proof-of-stake, euxto, hard fork combinator, and recently launched input endorsers and sidechains. The network famously made its foray into Artificial Intelligence with a partnership with Hansen Robotics and SingularityNET to create an Android robot to perform the duties of a caregiver.

The effects of the bears on Cardano

ADA, the project’s native token is trading at $0.48, soaring a staggering 12% in under 24 hours. The project’s market cap took a big hit and stands at $16.4 billion to rank as the 7th largest cryptocurrency.

The metrics around the network are the polar opposite of the highs reached in 2021. ADA attained an all-time high of $3.10 in September 2021 and was once the third-largest crypto-asset behind only Bitcoin (BTC) and Ethereum (ETH).

Amid the lows, rumors are swirling that Hoskinson dumped a portion of his ADA holdings before the start of the bear market. Critics argue that this may be the reason why ADA is down by as much as 84% from all-time highs appearing to be one of the most hit crypto assets.

Bitcoin Saw Largest Ever Monthly Withdrawal From Exchanges In June

Data shows Bitcoin saw the largest monthly outflow from exchanges in history this June as 151k BTC flew off centralized wallets. Bitcoin Netflow Shows 151k BTC Exited Exchanges In June As per the latest weekly report from Glassnode, BTC observed in June the largest ever monthly outflow from exchanges. The “exchange net position change” is::Listen

Data shows Bitcoin saw the largest monthly outflow from exchanges in history this June as 151k BTC flew off centralized wallets.

Bitcoin Netflow Shows 151k BTC Exited Exchanges In June

As per the latest weekly report from Glassnode, BTC observed in June the largest ever monthly outflow from exchanges.

The “exchange net position change” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all centralized exchanges.

The metric’s value is simply calculated by subtracting the total outflows from the total inflows. So, when the value of the indicator is positive, it means there are more inflows right now.

Such a trend may be bearish for the price of BTC as investors usually deposit their coins to exchanges for selling purposes.

On the other hand, a negative value of the indicator implies a net amount of coins is exiting exchange wallets right now.

Related Reading | Crypto Volume On Indian Exchanges Drops By More Than 70% After 1% TDS Rule

This kind of trend, when prolonged, can prove to be bullish for the crypto’s value as it can be a sign of accumulation from investors.

Now, here is a chart that shows the trend in the Bitcoin exchange net position change over the past couple of years:

Bitcoin Exchange Net Position Change

The value of the indicator seems to have been deep red in recent weeks | Source: Glassnode's The Week Onchain - Week 27, 2022

As you can see in the above graph, the value of the Bitcoin netflow seems to have been highly negative recently, suggesting a large amount of coins has exited exchanges.

In fact, over the last month, a record 151k BTC has flown out of exchange wallets. Just before these highest ever outflows, around 73k BTC was also deposited during the LUNA crash.

Related Reading | 3 Lessons From The Oslo Freedom Forum: Bitcoin As A Tool – Mallers, Roem, Fang

The outflows in June during such a bearish period as now are pretty contrasting with the May-June 2021 mini bear where monthly outflows clocked in 150k  BTC.

There could be a couple of reasons contributing to this trend. First, the Bitcoin market is moving towards a hodling mindset now.

And second, the recent events involving a lot of exchanges halting withdrawals on their platforms has lead to renewed attention towards self-custody of crypto.

Many investors are bound to be taking their coins off exchanges due to this fear and uncertainty right now, which would explain the unusually high outflows.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.4k, down 7% in the past week. The below chart shows the trend in the value of the crypto over the last five days.

Bitcoin Price Chart

Looks like Bitcoin is still consolidating | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com

Wen ADA Moon? Hoskinson Sheds Light On The Bear Market As Cardano Network Takes Big Leap

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