Cardano (ADA), in the current bear market, appears to be mirroring the path that Ethereum (ETH) charted during the 2020 bear cycle, which could herald a positive turn for ADA if the calendar History really repeats itself.
During the previous bear market, Bitcoin dominance increased from around 35% to 73%, largely as a result of the market turning towards the perceived safety of the large-cap cryptocurrency . However, over the past 25 months, Bitcoin dominance has only increased from around 39% to 49%, this time showing a different pattern, seemingly a shift in the crypto landscape, towards a more stable future. Hybrid multi-chain, where several blockchains coexist and develop in parallel.
Amid this change, Ethereum’s share of total market capitalization has maintained an impressive 20%, even throughout the bear market cycle. As Ethereum consolidates its position during the 2020 bear market, Cardano’s current performance appears to be following a similar path.
ADA price, currently at $0.26, has dropped 31% in the past two weeks. Despite this, it has managed to stay well above its 2020 lows, demonstrating resilience in the face of an overall bear market, similar to what Ethereum did during the 2020 bear market before the Impressive price increases in 2021-2022.
However, there is no guarantee ADA will be as successful as ETH but it is a sign of ADA’s upside potential. Ethereum had to go through a series of challenges and difficulties before it was able to consolidate its position in the market. Likewise, Cardano will need to overcome challenges and deliver on its promises to achieve the same results.