An overall bearish trend in the crypto market has led to a massive decline in the trading volume of Cardano (ADA) in the first quarter of 2022.
Cardano, like several cryptocurrencies, has seen a drop in the demand for its coins. According to Be[In]Crypto Research, the trading volume of ADA in the first three months of the year was approximately $142 billion.
This was a 72% decrease in the trading volume recorded between January and March 2021 of around $514.89 billion.
What caused the decline in Cardano (ADA) volume?
A bearish market that has been ongoing since December 2021 can largely be attributed as the primary reason for the ADA’s tumbling trading volume in the first quarter of 2022.
Some of the most-traded Cardano markets on several cryptocurrency exchanges included ADA paired with the United States Dollar Tether (USDT).
In January 2021, Cardano recorded a trading volume in the region of $104 billion with a single-day high of $6 billion. In January 2022, the trading volume of ADA was approximately $59 billion and had a single-day high of $5 billion.
In February 2021, Cardano recorded a trading volume of around $242 billion with a single-day high of $19 billion. In February 2022, the trading volume of ADA was in the region of $41 billion and had a single-day high of $3 billion.
In March 2021, Cardano recorded a trading volume of approximately $167 billion with a single-day high volume of $11 billion. In March 2022, the trading volume of ADA was around $41 billion and had a single-day high in the region of $3 billion.
How did this affect ADA in the first quarter of 2022?
ADA opened on Jan. 1, 2022, with a trading price of $1.31. The native asset of the Cardano ecosystem reached a quarterly high of $1.63 on Jan. 18 and closed the first quarter of the year with a price of $1.14. Overall, there was a 12% dip between ADA’s opening and closing price in Q1 2022.
For the sake of comparison, ADA opened on Jan. 1, 2021, with a trading price of $0.1814, reached a quarterly high of $1.48 on Feb. 27, and closed the first quarter of 2021 at $1.19. Overall, there was a 555% increase between ADA’s opening and closing price in Q1 2021.
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