Cardano: Can ADA Survive The Bear Market?! Where To From Here?

As the crypto bear Market continues Crypto holders have been anxiously Watching their favorite altcoins Continue to crash and are increasingly Wondering which ones will live to see The next crypto bull market cardano is One of the few altcoins that has managed To maintain its market dominance while Its competitors have collapsed however It's very possible Ada still hasn't Found its bear Market bottom today I'm Going to give you an update on Everything cardano has been up to Analyze Ada's recent price action and Tell you whether the crypto Project's Upcoming Milestones will result in a Massive rally Now whenever I cover crypto projects I Normally start with a bit of background But if you're watching a cardano video This deep into the crypto bear market Then I'm going to assume that you're Familiar with it already I'll also Remind you that nothing in this video is Financial advice it's purely educational Now if you've been keeping up with the Coin Bureau you'll know that the last Time we covered cardano was over three Months ago specifically early September It's safe to say that a lot has happened Since then and here are a few of the Highlights so in late September cardano Completed its highly anticipated vassal Hard Fork

For those unfamiliar vassal makes Transactions faster while decreasing Transaction fees I've yet to see an official transactions Per second figure but online discussions Suggest a smart contract TPS of 15 on a Par with ethereum A few days later cardano celebrated its Fifth anniversary the celebratory blog Post by cardano Builder iohk highlighted The blockchain's mainnet in 2017 the Shelley hard fork in 2020 the Introduction of smart contracts and nfts In 2021 and the vassal hard Fork as the Biggest Milestones so far in mergo Cardano's commercial arm also announced That it would be investing 200 million Dollars into cardano's ecosystem over The next three years in mergo founder Ken kadama specified two coindesk that Half of this money will be deployed to Cardano projects building in or focused On Africa in early October cardano Founder Charles hoskinson announced on Twitter that the project would soon be Entering the quote age of Voltaire for Reference the cardano roadmap has five Phases the Final Phase is called Voltaire and it focuses on governance More about that later Anyways another thing that Charles did In early October was Rebrand ethereum Classics Twitter account to Ergo a Proof-of-work crypto project closely

Affiliated with cardano that has acted As its de facto test net not Surprisingly the Rebrand came as a shock To the crypto Community this was in part Because not many people knew that Charles was technically the owner of Ethereum Classic's Twitter account and In part because he refused to return the Twitter account to the ethereum classic Community when asked If you watched our video about ethereum Classic you might recall that iohk was Actively involved in the crypto projects Development and had spent millions of Dollars to that end It's believed that Charles rebranded the Twitter account after the ethereum Classic Community refused to pass an Iohk proposal crypto is never short of a Good Feud is it anyway at the end of October in mergo partnered with the University of Nicosia to offer a Blockchain course about D5 for those who Don't know the University of Nicosia is One of the few institutions where you Can get degrees in cryptocurrency and You can also study remotely which is Great Iohk also announced that project Catalyst would be paused now to quickly Recap project catalyst is where Ada Holders can vote to fund up and coming Cardano projects Project Catalyst has had nine successful

Funding rounds so far with over 1200 Projects funded by its Community Treasury In November cardano hosted two Significant events the first was Scott Fest hosted in Edinburgh Scotland by Iohk while the second was the cardano Summit hosted in lausanne Switzerland by The cardano foundation Both events took place back to back and There were lots of announcements as a Fun fact lausanne is the same Swiss Canton where the companies that print All the world's money are based more About that in the description I digress Now the first announcement was that iohk Had partnered with the University of Edinburgh to create a decentralization Index for cryptocurrencies The index includes things like Hardware Software Network consensus mechanism Node hosting Services governance and Geographic distribution of nodes The second announcement was a Privacy-focused side chain for cardano Called Midnight that will be created by Iohk now midnight leverages zero Knowledge proofs for privacy and what's Cool is that it will have its own Cryptocurrency which will be earned by Staking pools on cardano which secure The chain keep an eye out for that one The third announcement was that iohk had Invested 4.5 million dollars into the

University of Edinburgh to establish a Blockchain research Hub now this makes Sense given that the oroborus consensus Mechanism used by cardano was invented At the institution The fourth announcement was that emergo Will be launching the first centralized Stablecoin on cardano early next year Like other centralized stable coins USDA Will be fully backed by cash and U.S Government debt and these reserves will Be held at a regulated financial Institution in the United States It should be noted that USDA is the First of many Financial products that Imago will be introducing over the Coming months as part of its anzens Initiative Anzens is a part of cardano's broader Push to connect cryptocurrency to the Traditional Financial system to create What Charles calls real fi Now the fifth announcement was that Coty Will be launching its algorithmic Stablecoin dubbed de Jed in January next Year The announcement reportedly resulted in Pushback from the cardano community who Fear that de Jed could result in a Terror type death spiral for Ada during Times of high volatility If you watched our video about Cody However you'll know that the Jed isn't Exactly an algorithmic stablecoin it's

More analogous to a collateralized debt Protocol like make a Dao combined with a Borrowing and lending protocol like Ave In short it means that a terror type Risk isn't possible on that note Coty Seems to have made some changes to De Jed since we covered it last year Back then only accredited investors that Is high net worth individuals would be Allowed to effectively lend their Ada to The protocol and receive the Jed's Reserve token called Shen after Consulting with their legal team however The koti team held an AMA in July and Explained that anyone will be allowed to Lend their Aida to the protocol to Receive Shen the caveat is that the de Jed dap will be blocked in 30 countries Including the United States note that There are no restrictions on to Jed Itself now this ties into another Significant cardano announcement that Was made at the end of November and That's that stablecoin protocol ardana And its related zero knowledge scaling Solution orbis protocol would be Shutting down The news came as a huge surprise to the Cardano community myself included that's Because ardana appeared to be a high Quality cardano project with a solid Team it was basically a copy of maker Dao which included a stablecoin decks Like curve Finance

This is significant because make a Dao And kerr Finance have consistently had The largest total value locked on Ethereum ardana had also received over 10 million dollars in funding from Prominent crypto VCS for what that's Worth these days It even received funding from iohk via The C fund now Charles explained in a Follow-up video that he had even Invested some of his own money into Ardana via the sea fund and not only That but ardana was even part of a panel Discussion about defy at the cardano Summit just days before the project went Bust The craziest part is that ardana was Apparently weeks away from launching its First decentralized stablecoin dubbed Dusd Naturally many in the cardano community Accused ardana and orbis protocol of Being rug pulls especially as orbis had Started an nft-based Ico a few days Before shutting down However there seems to be a lot more to This story beside the fact that orbis Subsequently refunded all nft Ico Participants ardana and orbis protocol Founder Ryan motovu explained in Twitter Spaces that something happened at the Cardano summit that forced ardana to Stop He was repeatedly asked what exactly

Happened but didn't give a clear answer Now this is scary because the mainstream Account of ardana's end was that the Crypto project simply ran out of money Or the founder ran off however Ryan Insisted that ardana had enough money to Launch dusd in the first quarter of 2023. he also didn't hesitate to give Specifics about the Project's finances This suggests that there might have been Foul Play from other entities in the Cardano community possibly even from Other stablecoin competitors I want to Say that this is speculation but Ryan's Answers to other questions in the Twitter spaces suggests that this is More likely than not For example Ryan was repeatedly asked About why ardana didn't reach out to the Cardano foundation the sea fund or other Crypto projects in the cardano community When it was in trouble Ryan was also Repeatedly asked why he didn't give a Heads up to the cardano community when Ardana was ending Ryan seemed to avoid These questions and emphasize that Everything happened Suddenly at the last Minute He also revealed that ardana Labs is Working with lawyers to get the Situation sorted out we'll be providing Detailed financials and is even working To pass on the project so that it can be Completed now call me crazy but that

Doesn't sound like a rug pull as for Orbis Ryan said that he was funding the Project out of his own pocket if I Understand correctly he lost a lot of Money on FTX when the exchange collapsed And was hoping that he would find Investors for orbis before his own Wallet was empty unfortunately he Couldn't secure any additional funding Now I strongly recommend listening to The Twitter spaces Ryan did to get the Full story here because it really does Sound like there is much more to it than The headlines would have you believe if You have any thoughts about the Situation then feel free to drop a Comment down below anyhow despite all of Cardano's amazing announcements updates And Partnerships Ada has fallen about 30 Percent since September this is not all That surprising given all the crypto and Macro factors that have been crushing The markets even Charles was warning About these factors back in September The Silver Lining is that the vassal Hard Fork didn't end up being an Alonso Hard Fork part 2 if you catch my drift Vessel actually improved cardano's smart Contract scalability by 10x and lower Transaction fees by 50 I dare not Imagine what Ada would look like now if The upgrade didn't have any actual Impact Now in addition to all the crypto and

Macro factors it seems that supply side Pressure has been contributing to Ada's Price suppression too historical data Suggests that Ada's supply has increased By almost 300 million since September Assuming an average price of 30 cents Per Ada that works out to around 90 Million dollars of potential cell Pressure this honestly isn't all that Much and it's also unlikely that all This new Ada was sold the problem is That it looks like there has been lots Of ADA selling coming from elsewhere the Elephants in this particular room are The cardano foundation iohk and emergo To my knowledge none of these three Entities raised any money all their Money came from their initial Allocations of ADA to be fair they're Probably staking most of this Ada but There's no question that there is also Some selling going on recall that in Mergo will be spending 200 million Dollars on ecosystem development over The next three years This looks like the tip of the spending Iceberg since emergo also recently Acquired two crypto projects and hired a New CEO for its Africa expansion Iohk has also been hiring and promoting Now to be clear this spending is likely To be bullish for cardano in the long Term in the short term however it's Probably contributing to Ada's price

Decline For what it's worth I have a feeling These entities sold most of their Ada During the bull market it's not their First rodeo after all Now on the demand side of the Ada Equation it doesn't look like there's Been that much interest in cardano but I Suppose it depends on which source you Reference downloads of the namei browser Extension wallet used to interact with Cardano dapps is 200k the same as in September this is consistent with these Statistics from sexplorer which revealed That cardano dapps have around 50 000 Monthly users again the same as September note that dap radar is also Tracking cardano dapsnap they weren't Doing so back in September I guess they Got the memo yourmovedap.com Now speaking of which cardano project Tracker cardano Cube seems to have added All 1000 plus projects that are building On cardano back in September it was only Showing around 70. the number of cardano Projects that have actually launched Seems to be closer to 100 per a November AMA with Charles meanwhile the total Value locked on cardano's D5 protocols Has fallen by over 30 percent according To defy Lama this is consistent with the More than 30 decline in Ada's price and Again consistent with the tvl statistics Shown by the sexplorer which is probably

The best cardano Explorer I've come Across the total wallet count is where Things get wonky though Cardano.fans suggest that the number of Cardano wallets has increased by around Three hundred thousand to 3.8 million Since September yet Ada stat shows that The number of cardano wallets that hold Ada has declined from 3.5 million to Less than 2.4 million Cardano.fans's statistics don't seem to Add up given that cardano had reportedly Surpassed 3.5 million wallets way back In May by contrast Ada stats statistics Seem to line up with the Ada Distribution statistics on sexplorer Which show that there are only around 2.5 million wallets actually holding Ada Obviously this is not a good sign but I Reckon you'd see similar statistics on Most cryptocurrency blockchains in the Depths of a bear Market The fact that the number of monthly dap Users on cardano has held steady Suggests that those inactive cardano Wallets weren't adding much value Anyways Although Ada is likely to continue Declining until we hit the true bear Market bottom its long-term performance Ultimately depends on cardano's upcoming Milestones note that you can find out When the crypto bear Market bottom could Be using the link in the description

Now as I mentioned earlier cardano has An official roadmap consisting of five Stages we're currently in the fourth Stage called Basho which focuses on Scaling that is going fast One of the few remaining milestones in Basho is a scaling solution called Hydra Which will start being rolled out next Year additional Milestones include the Introduction of various side chains such As the aforementioned midnight as well As an evm sidechain that iohk is working On oddly enough Charles explained in a Video about the Basho roadmap that Basho Will only be complete once Voltaire is Complete this is because it will be up To the Ada Community to vote on which Scaling Solutions are added to cardano And what the specifics of these scaling Solutions will be while Voltaire has Come into focus in recent weeks it has Already been in development via project Catalyst which launched in late 2020. The focus of Voltaire will be the Creation of a so-called Merit and Members-based organization which will Oversee cardano's ecosystem the details Are beyond the scope of this video but The organization will do things like Change blockchain parameters and manage The cardano community treasury of course Ada holders will be able to vote on the Members of this organization as well as Which improvements they want to see made

To cardano and how the Assets in the Treasury should be spent Charles expects to see full-fledged Unchain governance on cardano by the end Of next year this is the same timeline Given by emergo for the launch of other Features related to the anzen's real Fire initiative This includes introducing stable coins For other Fiat currencies tokenized Representations of real-world assets and Eventually borrowing and lending between Crypto and traditional Finance In October iohk discussed adjusting Cardano's K parameter the tldr is that Increasing cardano's K parameter will Make cardano more decentralized as it Will incentivize stake pool operators to Spin up New Pools Ada holders will Likely vote on adjusting the K parameter In the coming months voting on adjusting The K parameter will probably be done Using iohk's upcoming lace wallet which Is designed with Voltaire in mind the Lace wallet will even include adapt Store with dap ratings and security Certifications I couldn't find specific Timelines for when lace will be fully Rolled out In his presentation about de Jed Cody CEO Shahaf bar Geffen revealed that the Project has partnered with almost every Major D5 protocol on cardano to Introduce liquidity mining rewards When

De Jed is released in January next year In a subsequent fireside chat with Charles Shahaf revealed that it will Eventually be possible to Mint to Jed Using major cryptocurrencies on other Blockchains including BTC and eth Charles said that the end game of De Jed Is to become a model for a potential Central Bank digital currency or cbdc Charles also revealed that Coty was the Sea fund's first investment and how he Has a soft spot for koti from working on Bit shares back in the day now this is Spooky when you consider what Shahaf Said when he was showing off all the D5 Protocols that koti had partnered with For the Jed's liquidity Mining quote If you are developing on the cardano Ecosystem and you are not on this image You should ask yourself why you are not Following us Try as I might I could not spot ardana Or orbis protocol on the list of 40 plus Cardano projects that Coty had partnered With So this brings me to the concerns I have About cardano and my first concern is Potential conflicts within cardano's Ecosystem Some of you may remember that cardano Projects were seemingly hesitant to work Together after cardano released its Smart contract functionality last September this is because building on

Cardano is extremely difficult or so I've heard As such many cardano projects initially Refused to open source their solutions To cardano's so-called concurrency Issues fearing that competing cardano Projects would copy their code and Launch their own D5 protocols first Now I may be completely wrong but the Situation with ardana and orbis protocol Suggests to me that there continues to Be conflict between competing cardano Projects I'll reiterate that this is not The first time that there's been a Conflict and I recently read that there Were some other ongoing disputes make no Mistake then if the conflicts in Cardano's ecosystem continue they will Hold the entire project back from its Full potential from where I'm standing It looks like most of these conflicts Come from the fact that every cardano Project is trying to appease Charles Iohk in mergo or the cardano foundation So this ties into my second concern and That's ecosystem development ardana Seems to have been one of the only Cardano projects that received funding From outside of cardano's ecosystem Regardless of whether it was a rug pull Or not its collapse has likely turned Investors off of cardano's ecosystem This wouldn't be a problem if cardano's Ecosystem had strong connections to the

Ecosystems of other smart contract Cryptocurrencies but it doesn't cardano Has arguably been a lone wolf in the Crypto industry this was advantageous in Its early days but it's arguably Becoming an issue as it evolves case in Point consider that cardano could have Had a centralized stablecoin months ago Now I'm sure that at least one of the Major stablecoin issuers were interested In supporting the cardano blockchain This could have allowed cardano's Ecosystem to grow much larger and Increase its adoption by extension that Said of course letting centralized Stable coins take over can become a Recipe for well centralization this is Clear in the case of ethereum whose Creator vitalik buteran admitted that Stablecoin issuers will have the power To decide the direction of future Forks This is probably something cardano is Trying to avoid however this doesn't Change the fact that almost every Cardano project has received most of its Funding from Project Catalyst emergo or The cardano foundation This relates to my third concern and That's regulations Now I'll preface this by saying that This is speculation but it is based on Evidence For starters SEC chairman Gary Gensler Said that proof-of-stake

Cryptocurrencies could be Securities Newsflash cardano is a proof of sake Cryptocurrency Shortly afterwards cardano's Focus Shifted from scaling to governance which Could easily be explained by the Completion of the vassal hard Fork but Charles said this in an AMA earlier this Week quote I heard rumors that the Ripple case will be settled on December 15th and that could have catastrophic Implications for the industry one way or The other but you know you just keep Moving forward regardless of what Happens it's a decentralized ecosystem That you guys control the United States Of America doesn't get to say that Cardano lives or dies you do the world That's the point of a decentralized Ecosystem Now call me crazy but it sounds like Charles is concerned that cardano will Be targeted if Ripple loses its case Against the sec'd depending on when you Watch this video it's possible the Outcome has been announced already You'll know whether it's good or bad for Ada depending on its price action In some then cardano has a few issues to Sort out but hey every single crypto Project does Conflicts between crypto projects are Part and parcel of a bear market and Cardano has never rushed its ecosystem

Growth cardano is also decentralized by Almost every metric so it should should Be safe from the SEC even so these Concerns are important because the last Thing you want is to be caught off guard If cardano survives all the crypto and Macro factors over the coming months Then I will consider adding Ada back to My crypto portfolio you can find out What it looks like now using the link in The description Thank you

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