Cardano’s Market Cap Exceeds that of Dogecoin as ADA Recovers from Its Second-Largest Drop

By Jeet Adhvaryu On Jan 17, 2023

At a time when $ADA is rebounding from its second-largest fall ever, the overall market value of smart contract platform Cardano ($ADA) has eclipsed that of the famous meme-inspired cryptocurrency Dogecoin ($DOGE).

Cardano is now the eighth-largest cryptocurrency by market capitalization after topping $12.09 billion, with a price increase of over 8% over the last week and over 31% over the past 30 days.

In the meanwhile, Dogecoin is the ninth-largest digital currency by market value, with a price increase of 7.14 percent over the previous week. In the last 30 days, $DOGE has increased by almost 9 percent, suggesting it has severely underperformed Cardano.

As stated by CryptoGlobe, the majority of holders of the meme-inspired cryptocurrency remain profitable despite a bear market that has lasted over a year and caused the value of most digital assets to decline.

57% of addresses owning Dogecoin are in-the-funds, indicating they purchased their DOGE tokens below current market prices, while 41% of holders are out-of-the-funds, meaning they purchased their DOGE tokens above current market prices.

This year, Cardano’s price has been rebounding from what was its second-largest fall. According to CryptoCompare’s most recent Asset Report, the native token of the smart contract platform concluded the year at about $0.25 after losing 81.2% of its value over the course of the year. ADA fell from $0.71 to $0.04, a decrease of 94.3%, during the 2018 bear market, making this the second-largest decline in its history.

Notably, the fall also represented the third annual decline in Cardano’s history. The cryptocurrency’s rebound coincided with the resumption of $ADA accumulation by whale addresses, which might be a key indicator for the cryptocurrency’s breakthrough. After selling nearly 560 million $ADA in the last two months of 2022, $ADA whales have resumed accumulation this year, collecting 217 million tokens thus far.

According to recent reports, Input Output Global (IOG), the firm responsible for Cardano’s research and development, will release a software toolkit later this month that would enable developers to run custom-built sidechains on the Cardano network.

Cardano sidechains are “custom solutions” that “sovereign communities” can build on a secure, interoperable parent network like Cardano. The move is expected to improve the ecosystem of the Cardano blockchain, as IOG stated that “purpose-built solutions are crucial for communities to address unique social and technical needs.”