The staggering disconnect between Cardano’s multi-billion dollar valuation and its meager on-chain utility exposes a market driven more by speculative inertia than actual economic substance. This analysis serves as a sobering reminder that in the crypto space, narrative often remains dangerously decoupled from reality.
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CARDANO ADA - Rollercoaster Weekend! Which News is Real?! Urgency for Cardano!Added:
Wow, uh it is only the beginning of Sunday and we've already started to see a roller coaster of a weekend. Very volatile day yesterday for the markets.
A great bounce back day ADA above support, BTC above support. We're going to talk about the charts in this video because this is the best thing that we could have done here. And this is coming off of some news that we got yesterday.
Now, there's a lot of contradicting news out there which we will have discussions about what's real, what's not, but we also need to have a discussion about something else that keeps rearing its ugly head for Cardano. Something that does need to be addressed in a timely manner because if not, this could obviously continue to spin out of control. So, if you're new or haven't already, make sure you like, comment, subscribe, show your support for the channel down below. But, you can see that we are in a very different zip code than we were early yesterday. Might even notice here that we did in fact finish with a green candle day for ADA yesterday, up 1.49%.
Yesterday morning when we were discussing prices when I was filming my video, we were down in the, you know, 23s.
Uh not a not a spot we wanted to be.
That was coming back down testing the even lower trend and uh I talked about how significant that was. That could have brought us to some of the lowest prices um we have seen since all the way back here in March. And luckily, that didn't happen and it had to do with some news that we got yesterday and I'll get to that more in just a moment. But, ADA did get back above the top of this descending channel that we've been in.
We still need to breach 25 cents. We probably need to retest our 50-day moving average here as well which sits at about 25.38 at the time of filming this video. Um but, who knows? Maybe that's even in the not-so-distant future here, especially if the news that we're seeing this weekend does continue. BTC, great bounce back day yesterday, finished green up 1.57%.
BTC had a major decision to make here, especially headed into today. Do I get rejected off of that 50-day and see the downside like we were talking about potentially taking place or do I extend back above trend? So far today up 0.68% having a green candle day back above trend. So this was this was the best case scenario for the Well, I mean the best case would be is if you know, what's going on in the Middle East just ended completely and everything was open back up. You'd see markets just absolutely explode cuz again it would get rid of a lot of the uncertainty and questions that come with it. But this is exactly what we want to see.
Now we do again have a CME gap to the upside. We'll see if BTC does try to close that as we get into the early part of the week. Hopefully it doesn't open up I mean we are going to have if we were to open up the week right now we would have a downside CME gap as well.
So we might be kind of compressed in between two CME gaps again. So we'll see where the the weekend takes us. But here's the thing is we did get some short leverage liquidations here through the last 24 hours. Shorts have been you know, diving back into the market on some of the negative news about possible escalations here headed into the weekend. But that's not the news that we got this weekend. It wasn't what people expected. In fact, President Trump says an agreement with Iran has been largely largely negotiated and will be announced shortly. He says the Strait of Hormuz will be reopened under this agreement.
So that is a complete contradiction to what we were hearing on Friday. But this isn't where the contradiction stopped over the last 24 hours. In fact, Iran's Fars News releases a statement following President Trump's post stating a US Iran deal would be announced shortly earlier today as of yesterday. It should be noted that the American officials have acknowledged in multiple messages to Iran that Trump's posts are primarily for promotional purposes and media consumption within the US and they have recommended that no attention be paid to these statements. So they're basically suggesting that Donald Trump is uh it's propaganda, right? Saying that's not true. It's not taking place. Now, you however you feel about them, that doesn't really matter Uh in regards to this because we have information from Pakistan who's mediating these negotiations. Says a Pakistani security official says a memorandum of understanding is being fine-tuned to potentially end the Iran war. The Pakistani official or security official was briefed on the Pakistani army's chief's visit to Iran and his meetings with Iranian leaders. The visit has made significant progress towards ending the war, he says. Additionally, two Pakistani sources involved in negotiations said the deal being negotiated is fairly comprehensive to terminate the war. So, here's the thing, you have Pakistan saying, "Nope, we're not even close. Nothing's taking place."
You have the US saying, "Oh, we're very close to a deal." And then you say I have Pakistan saying, "Yes, major progress is being made." So, there's you know, you're you're seeing basically Pakistan I'm just Pakistan, you're seeing Iran basically um try to save face and say that nothing's happening. You have the US Donald Trump kind of going over the top and saying, "Oh yeah, we're really close." But, the thing is is there's major steps being made towards de-escalation. That's That's what everybody needs to know. So, this could obviously be very good for markets uh headed into next week. Uh you're probably going to see oil coming down as well following the weekend after it it spiked headed into it. But, that this is really dangerous what's going on right now because this news is causing the market to just whip all over the place. So, this is where speculators could obviously very much be in trouble.
This is why conviction at this time is very important cuz you can play some dangerous games and just get absolutely crushed in this volatility. That's That's at least my thoughts on that and I'm not telling you what to do. This isn't financial advice or anything like that, but um let's talk about something else Cardano related because I keep seeing posts like this pop up.
And what we are fighting right now when it comes to Cardano is major misinformation or spinning of of facts, Spinning of details, right? So, I've addressed posts like these before, but I want to show you guys the level of of ignorance we're fighting. The the fact that people outside of this space don't know what's going on with Cardano is a very is very dangerous. This is from Eisenhauer. He said Cardano has a $9 billion market cap. I'm not joking when I say I don't know a single real person active on Cardano.
I don't know how many holding ADA. The chain's numbers are a bit scary. TVL $128 million. 24-hour DEX volume $1.3 million.
Stablecoins $26 million.
About 17,000 active addresses. That's that's incredibly small on-chain on-chain economy relative to valuation. At some point the market has to decide whether it's whether it's valuing an ecosystem or just a memory from prior cycles. And you know, [snorts] uh Here's the thing. We've addressed some of these before. Yes, daily active users are low in terms of Cardano. Yes, conviction is very high in terms of Cardano. No, TVL isn't a fair valuation because again it does not count staking.
If you counted staking for Cardano, we'd be have one of the highest TVLs in all of crypto. Could on-chain volume be higher? Yes, absolutely. Is Cardano necessarily built for retail? No, not necessarily. It's more so built for enterprise and governments, for for infrastructure, right? So, that's just to again counter some of the major things that were saying. Now, this is This is where the problems lie.
You have, for example, this guy Finance Freedom saying no native stablecoins is crazy. If this is a proof-of-work chain, it would have already failed, but the truth is POS can run forever essentially. And yes, POS can run forever essentially. Eisenhauer said they have no [clears throat] stables.
Finance said no USDC or no USDT, some illiquid stable, but no. And 100% false. We have USDX, right? It's Cardano's version of USDC. It's directly from Circle. We also have USDM. We also have Jed. I think we have not USDA anymore. So, there the people are just flat out I don't God, I don't want to use the word ignorant again, but they just do not understand what is going on with Cardano. They don't pay attention to the developments. And that's that's the biggest problem we've had because the people in this space had been here since last cycle. They've been here since Cardano did have nothing, since it barely had smart contracts. They have not paid attention to the developments.
They've not paid attention to the integrations, the partnerships that have been announced. They haven't even paid attention to the launch of a half a billion-dollar side chain, right? So, that or a partner chain. Can't call it a side chain anymore.
Um but you are watching people just completely overlook Cardano, which could be a good thing and a bad thing. It can be a good thing because again, it gives us insane levels of opportunity when it comes to ADA price, but it could also be a bad thing because again, if you do want retail adoption, if you want people inside the space right now to start adopting ADA and Cardano, you're kind of missing the boat there. And I thought this was actually a really good post from Danny Vibes. It says, "Cardano does not need fear, but it does need urgency.
If some infrastructure proposals fail, the chain will survive. That was never the real question. The real question is whether Cardano enters the next cycle with stronger L1 throughput, but slower progress and execution, tooling and L2 capacity. Users do not experience road maps. They experience apps. And builders do not wait forever for better rails.
This is why this vote matters. This is in response to these governance proposals for funding for development. I said not because This person said not because one proposal decides everything, but because timing has consequences. And that's true. I think that Cardano has done a very good job of again staying ahead of the curve, having good launches, the right launches at the right time. But again, you have to get louder. You have to make sure that the progress is sustained, if you will. So, I wanted to talk about that in this video. I think it's a very important point that progress does continue. And again, everybody can vote however they want when it comes to these these governance proposals. Some people think that the development is just leaching from uh the treasury. And you know, I I get it, right? I think that a lot of that treasury money could go towards uh marketing. But at the same time, you want to be the L1 that can lead all, right? The L1 that that is the best built for future adoption. And I think Cardano is there right now, but that doesn't mean that other blockchains aren't making progress, too. So, that's my thoughts on that. I appreciate you guys. I hope you enjoyed the video.
Let me know your thoughts below. Have a great day. Catch you guys in the next one. Take care.
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