Dormant Cardano (ADA) wallets are waking up amid signs of recovery, according to data from Santiment. However, even when dormant wallets wake up, prices have not yet risen. CoinGecko shows that ADA price has increased by just 0.2% in the past 24 hours and is trading in the red zone on other time frames. This development also comes amid stronger bearish signals in the larger crypto market. Discuss whether your wallet will sell its holdings.
Will reawakened Cardano wallets sell their assets?
Cardano (ADA) has faced major hurdles in recent years. The asset’s price has fallen nearly 95% from its all-time high of $3.09. The project’s market capitalization has now fallen from about $90 billion to just over $6 billion.
Cardano (ADA)’s struggles were further reflected in the community’s vote against the annual Cardano Summit. This decision was prompted by the increased cost of hosting events due to falling ADA prices.
Cardano (ADA) founder Charles Hoskinson recently caused a stir when he said the project could lead to the demise of several DeFi platforms later this year. Mr. Hoskinson reiterated that he was “not going anywhere,” but his comments may have created a negative impression among investors.
Cardano (ADA)’s current woes may be waking up dormant wallets. Confidence in this project is low and macroeconomic conditions are not favorable for high-risk assets. US inflation has risen to 4.2%, making rate cuts much less likely. A wallet may decide to sell its holdings and take a new position in a more profitable asset.
On the other hand, it is also possible that the wallet is simply shuffling its holdings. Nothing is certain yet.
(Tag translation) Cardano
