The American entrepreneur and founder of Cardano – Charles Hoskinson – opined that ADA (the native token of his blockchain protocol) has been underperforming recently because crypto is in a bear market. In his view, nothing can move the USD valuation up during the current situation.
Bear Market is Here
2022 and especially the last few weeks have not been kind to the cryptocurrency industry as the prices of most digital assets are far away from their top levels registered in 2021. There are numerous reasons for the crash, including the post-pandemic financial crisis and the Russia-Ukraine war.
Addressing the matter and providing his view on why crypto has headed south was Cardano’s founder – Charles Hoskinson. In a recent tweet, the American claimed that digital assets had entered a bear market. Speaking of the USD valuation of his protocol’s native cryptocurrency, he argued that nothing could boost its price up right now.
“Yes, it’s called a bear market. That’s what happens. Nothing changes it. No announcement makes a difference. Cardano could cure cancer[…] give you a personal poker-playing robot that also drives grandma to church on the weekends, and we’d still fall.”
Hoskinson’s words come amid his project’s latest updates, which have had a little-to-no positive impact on ADA’s price. As CryptoPotato reported recently, Cardano outlined several updates for its network, including the launch of a cross-chain bridge. Later on, it revamped its block size by 10% to improve scalability.
At the same time, reports claimed that whales were on a buying spree at the start of the month, but that didn’t push ADA north either. The asset charted an ATH last autumn above $3 before the market-wide crash drove it south hard. As of now, it struggles at $0.65, meaning that it has dumped by about 80% since the peak.
More Bear Market Confirmation?
Another factor that might confirm the bear market fears comes from CryptoQuant’s most recent analysis. The analytics platform estimated that the bitcoin bull market halted in July 2021, and ever since, the trend has changed.
The company’s analysts attributed it to the Fees to Reward Ratio. The higher the ratio is, the more lucrative it is for miners to do their job as they don’t need to be further incentivized to hold to their BTC and vice-versa. Since the metric has plummeted since the April 2021 highs, CryptoQuant determined that it is an “indication of a bear market,” and miners have to sell some of their portions to cover their expenses.