What is the Current Cardano(ADA) Dominance?

The current Cardano(ADA) Dominance is

What is Cardano (ADA) Dominance?

Cardano (ADA) dominance represents the percentage of the total cryptocurrency market capitalization that Cardano occupies. In simpler terms, it's an indicator that showcases the relative strength and presence of Cardano within the broader cryptocurrency market.

A higher ADA dominance signifies that Cardano is claiming a larger share of the total crypto market value, reflecting its prominence and potential influence on market trends.

Understanding this dominance is crucial for traders, investors, and crypto speculators. It provides insights into Cardano's position relative to other cryptocurrencies and can be an early signal of market sentiment shifts.

When ADA's dominance rises, it often indicates growing confidence in Cardano's potential or technology, whereas a decreasing dominance could suggest the opposite or a stronger performance by other competing cryptocurrencies.

Monitoring this metric alongside other tools, like the TradingView historical chart, offers a comprehensive view of Cardano's market trajectory and potential future movements.

Factors Driving Cardano's Market Dominance

Innovative Technology and Research-Driven Approach:

Cardano stands out due to its emphasis on a research-driven approach to blockchain technology. Every update and feature is peer-reviewed by experts in the field, ensuring that the platform remains at the forefront of blockchain innovation.

This commitment to rigorous academic research gives both developers and investors’ confidence in the platform's long-term viability and security.

Decentralized Proof-of-Stake (PoS) Consensus:

Cardano's Ouroboros protocol, a decentralized proof-of-stake consensus mechanism, offers a more energy-efficient alternative to proof-of-work systems. This PoS approach not only aligns with global sustainability efforts but also attracts stakeholders looking for eco-friendly crypto solutions.

Strong Governance and Community Engagement:

The Cardano community plays a pivotal role in the platform's governance. ADA holders have a say in the project's future, promoting a sense of ownership and fostering an engaged, active community. This inclusive governance model has proven appealing to many investors and developers.

Interoperability and Future-Proofing:

Cardano's vision of creating a blockchain that can communicate and interact with other financial systems ensures that ADA remains relevant. As the crypto world evolves, Cardano's focus on interoperability positions it as a key player in a future where multiple blockchains coexist and collaborate.

Strategic Partnerships and Collaborations:

Cardano's team consistently forges partnerships across various industries, from governments to tech enterprises. These alliances not only expand ADA's real-world use cases but also boost its reputation and trustworthiness within and outside the crypto sphere.

Technological Advancements Bolstering ADA's Dominance Position

Ouroboros Proof-of-Stake Protocol:

Cardano's unique Ouroboros proof-of-stake consensus mechanism stands as one of its crowning technological achievements. Unlike energy-intensive proof-of-work systems, Ouroboros is designed for scalability and efficiency.

This groundbreaking protocol ensures secure and sustainable block production, positioning ADA as a leader in the next generation of blockchain technologies.

Smart Contracts with Plutus:

The introduction of Plutus, Cardano's smart contract platform, marked a significant leap in ADA's capabilities. Built on a robust foundation of academic research, Plutus offers unparalleled security and flexibility for developers, enabling a diverse range of decentralized applications (dApps) and fueling ADA's adoption across various sectors.

Tokenization through Native Tokens:

Unlike other platforms where custom tokens operate as smart contracts, Cardano introduced native tokens that exist on the blockchain's main layer. This design eliminates the need for smart contracts for token transfers, offering faster transaction times, reduced fees, and enhanced security, propelling ADA to the forefront of blockchain tokenization.

Decentralized Governance with Project Catalyst:

Cardano's Project Catalyst embodies the spirit of decentralized governance, enabling ADA holders to propose and vote on development initiatives. By fostering a community-driven approach to its evolution, Cardano ensures sustained innovation, adaptability, and a sense of collective ownership among its users.

Interchain Connectivity with Cross-Chain Bridges:

Recognizing the future as a multi-blockchain environment, Cardano has invested in creating cross-chain bridges. These bridges facilitate seamless asset transfers between Cardano and other blockchains, solidifying ADA's position as a key player in a connected, interoperable blockchain ecosystem.

Strategies Derived from Cardano's Dominance: Tips for Traders

Classical Technical Analysis with the Cardano Dominance Chart

The Cardano Dominance excluding stable coins chart can be used as an indicator for traders who want to make more money. The Cardano Dominance metric seems to follow basic rules of technical analysis such as support and resistance.

There are support and resistance zones within the dominance chart. The probability of the dominance getting rejected or bouncing from these zones increases when the Cardano dominance is at these zones.

Traders can place bets or make more informed decisions based on where the Cardano dominance is, relative to these support and resistance zones.

Take for example a scenario in which the dominance is at 4% and the zone above it is a significant resistance zone. It would make sense to come to the conclusion that the probability of the dominance getting rejected from this level is high.

We can draw a conclusion to this analysis. This is that since it has a high probability of getting rejected, the rest of the market may outcompete Cardano with respect to gaining or retaining value.

In the image below we can see a few support and resistance zones within the Cardano Dominance Excluding Stable Coins Chart.

Classical TA in Cardano Dominance Chart

Market Cycles within the Cardano Dominance Chart

There are certain points in time where holding Cardano is better than holding any other altcoin within the crypto market.

The dominance is a cyclical metric. There are moments when holding Cardano is a terrible idea, and a great idea. During bull runs, people take more risk by obtaining very speculative assets. It is at this time when it is better to swap ADA for BTC or stables.

It should be noted that this is the dominance. Cardano can outperform all other assets and still go down in price. Cardano can also go down in price and underperform other assets. In this scenario, the dominance goes down and the price of Cardano goes down as well.

Cardano can go up in price, and down in dominance. This means that the overall market(BTC and other coins) makes more gains compared to Cardano.

In the image below we have some zones where there is too much risk in holding Cardano. There is also a zone where attaining Cardano can make your portfolio outcompete other assets.

Cycles in Cardano Dominance Chart

Reading the TradingView Chart: A Guide to Cardano's Historical Dominance

Cardano’s dominance chart can provide valuable insights into the current Cardano market. Traders and crypto enthusiasts can use the chart to make more informed decisions. As we mentioned previously, the Cardano dominance is the percentage market share that Cardano has out of the whole market. Excluding stable coins gives more precise insights into the real dominance.

Cardano was mostly introduced into exchanges in 2017, as such we have the earliest data of Cardano having a dominance of 0.3%. The dominance of Cardano takes off in the bull run of 2017. From there the bear market proceeds, which is long and drawn out. Cardano then starts outcompeting the market in the early part of the year 2021 all the way to Q3 2021.

Since then, Cardano has been losing tons of market dominance. Every time the mouse hovers over the chart, we can see the Cardano dominance on that day. Because Cardano is an altcoin, it has massive volatility. Dominance went from 0.66% in early 2021 to 4.7% in 2022.

Stable Coins vs. Volatile Assets: Why the Exclusion Matters

Stable coins, designed to minimize price volatility, are typically pegged to traditional assets like the US dollar. Their inclusion in dominance calculations can misrepresent the real dynamics of more volatile assets like Cardano, diluting data and overshadowing genuine market sentiment.

On the other hand, volatile assets, such as ADA, reflect the market's speculative nature and its genuine confidence or skepticism regarding its future potential.

Excluding stable coins from dominance charts provides traders, investors, and speculators with a purer, undistorted view of Cardano's actual standing and the market's prevailing mood, leading to clearer insights and more informed decision-making.

Stable Coins Excluded in the Cardano Dominance Chart

Now that you’ve learnt why excluding stable coins is important, it is important to note all of the stable coins which the metric above excludes. The Cardano Dominance chart excludes many prominent stable coins. Down below is a list of all the stable coins that the Cardano Dominance chart excludes.

Major Stable Coins Excluded

  • USDT
  • USD Coin(USDC)
  • DAI
  • BUSD
  • FRAX
  • True USD(TUSD)
  • Terra Classic USD(USTC)
  • PAX Dollar(USDP)

Other Stable Coins Excluded

  • USDD
  • Gemeni Dollar(GUSD)
  • FRAX
  • USDJ
  • Liquidity USD(LUSD)
  • Stasis Euro(EURS)
  • Venus USDC(vUSDC)

Other Stable Coins Excluded

  • VAI
  • sUSD
  • sUSD
  • Steem Dollars(SBD)
  • Venus USDT(vUSDT)
  • USDK
  • Euro Coin(EUROC)
  • HUSD
  • Reserve(RSV)
  • Celo Euro(CEUR)
  • And Many More!