Cardano Holding Up Well for These Reasons, According to Crypto Analyst Benjamin Cowen
Top crypto analyst Benjamin Cowen is outlining why he believes scalable blockchain platform Cardano (ADA) is performing well amid a broader corrective period in the crypto markets.
In a new video, Cowen reasons that the fifth-largest asset by market cap is trending well because its platform is easy to use and to validate. Cardano’s validators store a copy of the blockchain and are paid in ADA for their energy and services.
Cowen, who says he has attempted to run validator nodes for many projects, finds Cardano’s process to be the simplest.
“Given the current market conditions – why has it not dropped more? … I’ve explored running validators on a lot of networks, and I think Cardano is the easiest. It’s the easiest for validators for sure, and I think it’s relatively easy for delegators as well.”
Staking is also simple on Cardano, notes Cowen, who has been staking his own ADA. According to Cowen, ADA users continue to stake their coins amid the sustained crypto correction.
“Bitcoin’s down 50% and when you look at the active stake in the ITC pool, you can see that it’s just been going up….
If people are not unstaking their ADA and instead are just continuing to either hold it or add to their stack, then it’s going to reduce the sell pressure. Now the staking and unstaking is obviously not going to be enough to … mitigate the effects of Bitcoin when it drops from [$64,000] down to [$29,000]… But the fact that it’s still trading at a $1.20 … it’s actually quite remarkable.”
Cardano insights platform PoolTool unveils that over 70% of ADA’s circulating supply, worth over $28 billion, is currently staked.
Cowen also says Cardano has good marketers behind it and is providing an easy way for holders to earn passive income. These factors, coupled with its slow and methodical rollout, are keeping ADA afloat during a turbulent period.
“Cardano, they are really good marketers… They have these validators, and if you have a validator, then you obviously want to get people to delegate to stake pools that you are running…
You essentially have a project that has made it so that people can earn interest relatively seamlessly. It’s relatively easy to set up a validator.”
Cardano is trading at $1.21, at time of writing, down over 50% from its all-time high of $2.45.
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