Benjamin Cowen: Cardano Performs Well Despite Market Correction
Benjamin Cowen, a prominent crypto analyst and trader, explains why scalable blockchain platform Cardano (ADA) is performing well, while the wider crypto markets are going through a corrective period.
In a recent video, Cowen tells his 481K YouTube subscribers that the fifth-largest crypto 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.
According to the analyst, he has run validator nodes for many projects, and finds Cardano’s process 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.”
Another point that Cohen makes is that staking is very simple on Cardano. The trader has been staking his own ADA. The coin holders continue to stake their asset while the market is moving through correction, he points out.
“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.”
According to PoolTool, a Cardano insights platform, more than 70% of ADA’s currently circulating supply, worth over $28 billion, is staked.
The analyst also makes a case that Cardano has good marketers behind it and is providing an easy way for holders to earn passive income. These factors, along with its slow and methodical rollout, are keeping ADA afloat during a turbulent period, says Cohen.
“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.”
At time of writing, ADA is trading at $1.18, with 3.1% loss on daily chart, and down over 50% from its all-time high of $2.45.
