The cryptocurrency market is getting hit with another week of big sell-offs, and Cardano‘s (CRYPTO: ADA) ADA token has been caught up in the negative market momentum. The cryptocurrency was down 11.2% over the last week of trading as of 4 p.m. ET on Friday, according to data from S&P Global Market Intelligence.
Only a handful of the top-50 largest cryptocurrencies managed to end the last week of trading in the green, and most were down double digits across the stretch. In addition to the specter of rising regulatory risks, the crypto market is also facing bearish catalysts related to potential conflict between Ukraine and Russia, shifting macroeconomic conditions, and disappointing guidance from some prominent, growth-dependent companies.
The Biden administration is reportedly readying an executive order that would introduce new regulations on cryptocurrencies, and investors appear to be sweating the potential impact. The crypto market has also been impacted by a pronounced investor shift away from high-risk cryptocurrencies and stocks. Weak guidance from companies including Peloton, Netflix, and Tesla, and the threat of rising interest rates have also added to the bearish momentum, and Cardano’s ADA token has been feeling the squeeze.
In addition to the long list of factors prompting sell-offs for the broader cryptocurrency space, it also looks like some network-specific factors could be pushing Cardano’s token price lower. The recent launch of the SundaeSwap decentralized trading exchange on Cardano has led to record utilization on the network, but this has also led to some concerns about its blockchain network’s scalability.
Cardano’s ADA now has a market capitalization of roughly $35 billion, and it ranks as the sixth-largest cryptocurrency by valuation. Even after big sell-offs in recent months, the token is still up more than 200% over the last year of trading.
With Bitcoin, Ethereum, and Solana‘s respective cryptocurrency tokens also down 1%, 8.1%, and 22.5%, respectively, over the last week of trading, it’s likely that market momentum is the primary driver of ADA’s recent valuation slide. Cardano’s unique blockchain network and features give it individual pricing catalysts, but investors should move forward with the understanding that the token will likely continue to trade in line with trends for the broader crypto market — at least in the near term.
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