Cardano (ADA) has recently slipped out of the top 10 cryptocurrencies by market capitalization, now trailing behind Tron (TRX), which boasts a market cap of $13.10 billion compared to Cardano’s $12.23 billion.
This dip comes amid a broader market correction, with major cryptocurrencies like Bitcoin (BTC) also experiencing declines.
Cardano’s fall can largely be attributed to prevailing market dynamics, including investor sentiment and overall market conditions.
ADA Derivatives data. Source: Coinglass
This uptick could signal that traders are positioning themselves for potential significant price movements, possibly in anticipation of the upcoming Chang Upgrade, which is expected to introduce on-chain governance, a critical milestone for Cardano’s evolution toward full decentralization.
However, the derivatives market presents a mixed picture. While the majority of traders are currently holding long positions, indicating a belief that ADA’s price could rebound, the overall 24-hour long/short ratio suggests that this optimism is tempered by caution, as traders are not overwhelmingly confident in a strong upward movement.
Furthermore, options market data reveals a significant decrease in speculative plays on ADA’s future price, reflecting broader uncertainty in market sentiment.
What’s next for ADA?
Currently, ADA is priced at $0.37, reflecting a 2.4% increase over the past 24 hours.
ADA seven-day price chart. Source: Finbold
Cardano’s ability to reclaim its top 10 status will largely depend on its success in driving user adoption and increasing network activity.
With competitors like Tron continuing to expand their market share, Tron’s stablecoin supply has surged to $61.1 billion, capturing nearly 38% of the total stablecoin market, the path to recovery for Cardano will not be easy.
Nevertheless, the cautiously optimistic sentiment in the derivatives market suggests that traders still see potential in ADA.
If Cardano can leverage its technological strengths, address its current weaknesses, and capitalize on upcoming developments, it could stage a comeback and sustain its position among the top 10 cryptocurrencies by market cap.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
