Cardano News Today: ADA prices plummet, but Hoskinson remains bullish

Cardano News Today: Why did ADA prices plummet? What happens next?

The cryptocurrency market was all red today, and the decline of Cardano (ADA) was particularly significant among mainstream currencies. If you're searching for Cardano's news today and wondering why the ADA continues to fall while its founder seems calm and calm, then the following will reveal the truth-from falling prices to two updates that Charles Hoskinson believes are more important than today's decline.

Key Points

ADA's current trading price is US$0.198, down 1.5% in 24 hours, and the cumulative decline for the week exceeds 6%, although the monthly increase is still 8.3%.

From August 21 to September 1, Cardano's trading volume and active addresses dropped significantly.

A governance vote passed with 71.99% for DRep and 56.22% for SPO, paving the way for the launch of Ouroboros Leios.

Why did the cryptocurrency market fall today?

The entire cryptocurrency market is in a downward trend. According to data, the global market value of cryptocurrencies currently stands at US$2.7 trillion, down 1.8% in the past 24 hours. Today's trading volume was US$85 billion. Bitcoin's market share remained at 57.6%, and Ethereum's market share was 10.8%. Among mainstream currencies, ADA fell more than the overall market.

Renewed tensions between the United States and Iran have heightened market concerns about a widening war in the Middle East, especially over the strategic Strait of Hormuz. Rising oil prices, possible disruptions in shipping and Trump's warnings of more stringent retaliatory measures are pushing investors away from risky assets, including cryptocurrencies, sparking widespread market sell-off.

Why are Cardano prices plummeting now?

Its on-chain activity data confirms the decline in prices. Data showed that daily transaction volume dropped from 40,063 on August 21 to 18,893 on August 30, before slightly recovering to 21,362 on September 1. The number of active addresses also showed the same trend, falling from 34,833 on August 21 to 15,077 on August 30, and slightly recovering to 18,062 on September 1.

Lower number of traders and lower number of active wallets usually mean less demand pressure on prices, which explains why the ADA plunged as the overall market fell today.

Why is Hoskinson still confident in Cardano?

Despite the poor data, Charles Hoskinson did not flinch. In a post on his Cardanians account, he said: "ADA is not out. We are still fighting for victory. RealFi, Pogun, Leios, Governance. We just need to finish what we started." He called the next chapter "Cardano's most important chapter to date" and pointed out two reasons.

The first is governance voting. According to the official Cardano account, the vote to update the Constitutional Council requires 67% DRep and 51% SPO support to pass. The voting window will close on September 1. The final results showed that both support rates easily exceeded the threshold, with 71.99% DRep and 56.22% SPO support, respectively. This opens the way for the next expansion and upgrade of Ouroboros Leios.

Secondly, there is the anniversary of the hard fork. Two years ago, at Epoch 507, the Chang hard fork marked the beginning of the Conway era. Version 9.0 of the protocol will be launched on September 1, 2024, launching the first phase of CIP-1694, its on-chain governance system.

ADA Price Forecast: What's Next?

With the passage of the governance vote and the anniversary of the Conway era, Hoskinson's confidence is based on execution rather than purely emotion. If the development of Leios proceeds as planned, it may help restore transaction volume and active address numbers, which in turn supports prices. However, ADA's price forecasts and short-term trends will still largely depend on how the entire cryptocurrency market performs in the coming days.

Conclusion

ADA fell today as the entire US$2.7 trillion market fell, with both trading volume and active addresses declining since August 21. However, news from Cardano today showed that the governance vote had passed smoothly, and Hoskinson said the project's most significant chapter was still ahead.

Important statement: The content of this article is for information reference only and should not be regarded as financial, investment, trading or legal advice. The cryptocurrency market is extremely volatile and carries significant risks, including the risk of losing all principal. The prices, transaction volumes, voting data, etc. quoted in the article all come from data providers and official accounts, are obtained at the time of writing, and may change rapidly. Be sure to do your own research and consult a licensed financial adviser before making any investment decisions.