Cardano Shows Signs of Life Again as ADA Rockets 40% After Massive FUD

Cardano’s native token, ADA, has staged a remarkable recovery, surging over 40% from its recent multi-year low. The rally comes after a period of intense fear, uncertainty, and doubt (FUD) triggered by comments from Cardano founder Charles Hoskinson in June.

Hoskinson stated he would take a break from Cardano and warned that multiple projects on the Layer-1 blockchain might face immediate failures. This led to a sharp price decline, with ADA falling from above $0.20 to under $0.14 by the end of June, its lowest level since 2020.

However, over the past week, ADA has decoupled from most larger-cap cryptocurrencies, which have only seen modest gains of 5-10%. The asset climbed to $0.20 earlier today, marking a 40% increase from its bottom. According to analytics firm Santiment Intelligence, the Cardano network is “showing signs of life again,” with nearly 15,000 non-empty ADA wallets added since the recent low.

“Retail support has been one of ADA’s strongest traits even through ugly market stretches. After weeks of fear, this renewed holder growth suggests the crowd is gaining trust again,” Santiment noted.

Another factor driving ADA’s recovery is the hype surrounding the upcoming RealFi Phase 1 Testnet upgrade, which Hoskinson described as the “largest” in the project’s history. The upgrade is scheduled for completion by July 6. Such events often trigger a ‘buy-the-rumor’ rally, though the subsequent ‘sell-the-news’ event may lead to a price decline once the upgrade is live.

For now, ADA remains one of the week’s top performers, with a 30% gain since last Sunday. Its market capitalization has rebounded to $7 billion after briefly dipping below $5 billion.

Source: https://cryptopotato.com/cardano-shows-signs-of-life-again-as-ada-rockets-40-after-massive-fud/