Cardano's ADA token is gaining ground amid the momentum of other cryptocurrencies. ADA is up approximately 7,3% from the previous 24 hours as of 15:00 pm yesterday. Bitcoin was up about 5,6%, while Ethereum's ether token was up 6,5%.
The cryptocurrency market was hit hard last week as investors focused on the emergence of a new variant of the coronavirus called omicron, but market sentiment appears to be changing again. Many of the major crypto tokens are making big gains, and Cardano's ADA token is participating in the price rebound.
Problems with brokers
With the new variant of the coronavirus creating a new source of uncertainty last week, investors moved out of high-risk cryptocurrencies and stocks, and Cardano and many other leading altcoins experienced steep declines. Cardano's sell-off last week was particularly pronounced as eToro also announced that it would begin restricting trading of TRON's ADA and TRX token for US-based users of its trading platform, causing significant sells. -off for each of the tokens.
Cryptocurrency investors appear to have digested the risks posed by the omicron variant, and ADA's valuation is rising thanks to the shift in sentiment. However, even with the recent recovery, the token is still down around 10% over the past seven days.
Will ADA touch a new ATH before the end of the year?
Cardano provides a blockchain-based network for developing and running decentralized finance (DeFi) applications. The company's ADA token is used as a currency for transactions on the network. As such, it is possible that greater adoption of Cardano and the services based on its blockchain will work to bring the price of its cryptocurrency significantly above current levels.
The ADA token has grown this year as Cardano has gained favor as a network for DeFi network services and its market cap of around $ 53 billion makes it the sixth largest cryptocurrency. The token's earnings have been incredible, but there have also been some big price swings along the way. ADA is trading roughly 46% lower from its all-time high of $ 2,97 per token. However, investors should keep in mind that regulatory risks and the potential for dramatic volatility in the crypto space mean it is still a high-risk investment.
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