New Delhi: Amid the ongoing weakness in the crypto cart, Cardano (ADA) once again breached the $1 mark on Monday. It is the second corrective phase wherein the token has slipped below this level. The first was during the correction it saw in February this year.

Support of hip hop star Snoop Dogg failed to lift sentiments on the token. The global music artist has launched an NFT collection on the Cardano Blockchain with Clay Nation.

The crypto token has lost more than 70 per cent of its value from its peak of $3 scaled in November 2021. On Monday, it plunged 9 per cent to $0.8777 from $0.9615 within a span of 24 hours, with the total market cap of Cardano slipping below $30 billion, Coinmarketcap data showed.

The fall in the token prices has dwindled down its position to the eighth largest crypto token from the fifth earlier. On the other hand, the volumes of the token have rallied about 90 per cent as tokens worth $0.84 billion exchanged hands in the last 24 hours.

"Cardano is facing the heat from Bitgert, whose prices are skyrocketing as the Bitgert BRC20 blockchain is more powerful than the Cardano chain," said Raj A Kapoor, Founder, India Blockchain Alliance.

The total supply of Cardano is capped at 45,000,000,000 ADA tokens, of which 75 per cent or 34,277,702,082 ADA tokens have already been mined and are in circulation so far.

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Compared to 186,000 wallets in December 2020, there were over 3.2 million wallets on the cryptocurrency's network in the first quarter of this year, WazirX said in the note. "While ADA is currently much lower than its all-time high, whales owning more than 10 million ADA tokens have become the greatest share of supply held in two years, at 46.6 per cent."

Cardano is a layer 1 protocol, a base blockchain to validate and finalise transactions without the need for another network. However, it is facing stiff competition from other layer-1 protocols, such as Ethereum, Avalanche, and Solana.

More than 500 projects are built on Cardano from NFT collections to DeFi lending and new wallets. The majority of their token distribution is in place, quite similar to Bitcoin. Distribution going into retail hands is growing as well.

Even though Cardano has been around for quite some time as an Ethereum killer it hasn’t actually made any dent, said Ishan Arora, Partner, Tykhe Block Ventures. "Cardano might have a future if it solves its issues with its own tech that would allow strong project launches on it."

Like Dogecoin, Cardano has a huge cult following and sometimes prices are not really based on fundamentals. Investors must always do their own research before investing in such projects, suggest market experts.

Shivam Thakral, CEO of BuyUcoin said that the fundamental rule of investing says that investors with a long term period always make a profit and this holds true even for cryptos. Disciplined investors have made strong returns in Cardano too.

Cardano is also one of the most promising projects in the crypto market, the current prices are a great opportunity to buy it as cheaply as possible for the long term, said Kapoor. "The growth trajectory would continue in the coming years."

Down 70% from all-time highs, can this crypto token rebound anytime soon?