The cryptocurrency market is currently struggling owing to poor macroeconomic factors.
In this crypto crisis, Cardano has been one of the most volatile cryptocurrencies. Cardano (ADA) has dropped about 15% in the last seven days and 5% in the last 24 hours. It is currently trading at $0.3663.
Why ADA Is Struggling?
The recently released Producer Price Index also demonstrated that the economy is experiencing unsustainable inflation. The Fed views avoiding inflation from becoming entrenched in normality to be its top objective.
The possibility of a recession and stagflation is also weighing on the crypto market's prospects.
However, Cardano supporters believe that cryptocurrency is fundamentally strong. DefiYield's Yevhen Karpenko suggested the reasons that make Cardano successful in the long run. He feels that Cardano is more decentralized than other cryptocurrencies due to the Ouroboros consensus method. He claims that Cardano has over 1500 validator pools.
Furthermore, Cardano has a higher transaction speed than other cryptocurrencies. It is now capable of processing more than 250 transactions per second. Ethereum, on the other hand, has a TPS between 15 and 45, whereas Bitcoin has a TPS of 5.
Key Events To Watch
Market participants are looking forward to the FOMC meeting on November 2nd. The Federal Reserve will announce its decision on the next interest rate hike, which will have a significant influence on price movements.