Why is Cardano crashing like a meteor? That is an extremely intriguing question. Cryptocurrency is divided into three generations: the first, second, and third.
The majority of altcoins are of the first or second generation. BTC is the first generation cryptocurrency, ETH is a second, and Cardano (ADA) is a third.
Being a third-generation cryptocurrency, it's possible that this is one of the reasons why ADA is still so cheap. Because it came later, fewer people are aware of it.
However, being a third generation cryptocurrency, ADA is far more versatile and has a wider range of applications than first or second generation coins. As a result, it stands to reason that the market cap of ADA will catch up to the market over time.
So, despite the recent price hike to the $1.50 to $1.60 level, I still believe it is undervalued. When compared to BTC at 60k and ETH at 4K, it's a bargain.
To match the current price of ETH, that's a multiple of more than 2000 X. And, in my opinion, ETH will not remain at that level. At the end of 2021, it was significantly higher. As a result, the same happened to ADA had hike even higher.
Cardano, in my perspective, did not fall too hard. It was just a correction in a market that had been hot for a long time. New projects such as Cardano (ADA), IOTA, and even MATIC have plummeted from their highs in late December 2021 to the first week of January 2022. However, with time and more growth, they can all have a bright future.