Cardano’s price drops to a 3-month low after Etoro announced it will delist the token for US users after Christmas so let’s find out more in our latest Cardano ADA news.
The price of ADA as the native coin on the Cardano blockchain dropped to $1.60 which is its lowest point since August 9 and 48% of its ATH of $3.09 according to the data from Coingecko. The price movement came after the etoro exchange announced it will delist the token and US users can no longer trade ADA or TRX because of regulatory issues. eToro cited “business-related considerations in the evolving regulatory environment.” eToro will now allow new TRX and ADA buy after Christmas and the platform will pull the support for staking of the token as well.
And we didn’t even get delisted. Ada is still on etoro and non-US customers can freely trade https://t.co/FAcUgv9ERj
— Charles Hoskinson (@IOHK_Charles) November 23, 2021
Current users can maintain their holdings or sell them but eToro said it will start limiting ADA and TRX sales in early 2022. eToro accounts for about 1% of ADA’s trading volume in the past 24 hours but the news contributed to the outsized drop in the value in the currency which declined by 9% over the past day. Cardano’s price dropped to a new monthly low while TRX with a market cap of under $7 billion also crashed and lost 6% on the day. IOHK CEO Charles Hoskinson who is the founder of Cardano refused to call the actions “delisting” and said that ADA is still on etoro and the non-US customers can freely trade.
This however is not the biggest trouble Cardano face as its token price was already trending downward. ADA is worth 24% less than it was last month and with the arrival of smart contracts on the network in September which boosted the price, there are plenty of other elements that are yet to take off on Cardano. DeFi Llama that tracks the amount of crypto dedicated to decentralized exchanges and liquidity protocols, didn’t list Cardano because of its “total value locked” being lower than other Ethereum competitors like Terra, Avalanche, and Solana.
ADA 24-hour Price Chart (Source: Coingecko)
But if the increase of Solana taught us anything, it is to not discount the goal for a better ethereum alternative as the protocol scales from proof of work to cheaper proof of stake algorithm and in just six months Solana had under $1 billion locked into protocols on the network with a market cap of $8 billion but these numbers have so far increased. Cardano users are really hoping that these numbers are going to rise as well.