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$ADA$ HYSTERIA (PART 3)
Adding fuel to the fire, the SEC, in its recent spat with US crypto exchanges, slapped ADA with the 'security' tag. This may well be sparking the uptick in transaction volumes as panic selling sets in.
The number of ADA whales has dwindled from 158 to 142, accounting for a 3% drop in the total token supply. Now, retail investors are filling the void left by their departure, indicating a changing of the guard, as the big fish offload their tokens onto the small fry.
According to data by Gate.io cryptocurrency exchange, daily active addresses have shot up by 41.5% in the last week, thanks to a flurry of DeFi activity that's pushed the Total Value Locked (TVL) to annual highs. Total ADA addresses are also on the rise, signalling an influx of Cardano virgins alongside those keen on spreading their assets across multiple wallets. Interestingly, Twitter sentiment is resoundingly pro-ADA, with the tweet sphere buzzing with over 12,000 positive tweets versus a paltry 1,500 negative ones. $ADA$ a security now?
The last 48 hours have been a dizzying spectacle of dives and climbs, as crypto markets take the SEC's stern lecture on the chin and rebound with the kind of spirit one might expect from a ragtag bunch of digital mavericks. Markets now find themselves in a tranquil holding pattern, as traders scratch their heads and ponder the fallout from these impending lawsuits. Yet, it's heartening to see that, rather than implode, the crypto universe has weathered the storm, signalling an evolving maturity.
In the unfolding drama, the SEC has pointed an accusatory finger at a star-studded cast of digital assets, including Solana (SOL), Cardano (ADA), Polygon (MATIC), and Filecoin (FIL), that are now, apparently, considered to be securities. As a result, their prices have taken a nosedive, careening into the abyss.