Cardano (ADA) Drops Out of Top 10 Cryptocurrencies by Market Capitalization

Cardano's native token, ADA, has dropped out of top 10 cryptocurrencies by market capitalization. Since January, ADA has steadily lost market share

Cardano’s native token, ADA, has dropped out of the top 10 cryptocurrencies by market capitalization.

The decline comes as part of a broader market correction, with Bitcoin (BTC) also losing ground.

Shifting market dynamics and weak investor sentiment have put pressure on ADA.

Despite launching smart contracts, Cardano has struggled to gain traction in the DeFi space.

ADA's market dominance has also declined significantly since the launch of smart contracts.

Cardano's ADA token has dropped out of the top 10 cryptocurrencies by market capitalization, as the broader crypto market faces a downturn and investors’ risk appetite diminishes.

According to recent data, ADA's market cap currently stands at $11.9 billion, placing it behind TRON's TRX. This marks a significant decline for ADA, which was once ranked among the top five cryptocurrencies.

The decline in ADA's market cap comes as part of a broader market correction. Bitcoin, the world's largest cryptocurrency, has dropped around 11% in the last 30 days, facing pressure from the Federal Reserve's interest rate hikes and shifting economic conditions.

This downturn has put additional pressure on ADA and other altcoins, leading to a reduction in investor risk appetite and a preference for safer assets.

Several factors have contributed to ADA's struggles, including shifting market dynamics and weak investor sentiment. The Crypto Fear & Greed Index remains in the “Fear” zone at 28, indicating ongoing caution among investors, although it has improved slightly from last week's “Extreme Fear” level.

Moreover, investor sentiment has been dampened by Cardano's sluggish network activity. Despite being one of the pioneering blockchains to implement a proof-of-stake consensus algorithm, Cardano has struggled to gain traction in the decentralized finance (DeFi) space.

Data from DefiLlama shows that Cardano has only 23,807 active addresses, compared to Ethereum's 350,000 and Tron's 1.9 million. In terms of total value locked (TVL), Cardano's network has $178.07 million, which is less than 1% of the total DeFi market share.

This places Cardano at 29th in terms of TVL, far behind top-ranking chains like Ethereum, Solana, and Tron. The lack of DeFi activity on Cardano has limited its growth potential and contributed to its declining market share.

It's worth noting that ADA's market cap and ranking can fluctuate rapidly, especially during periods of high market volatility. The specific market capitalization figures and rankings may vary slightly depending on the data source and methodology used.

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