Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Cardano's Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Cardano (CRYPTO: ADA) has been much stronger.
Related Link: If You Invested $1,000 In Ethereum At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now
Several factors led to a surge in Ethereum buying in 2020 and especially in 2021. Younger Americans receiving three rounds of direct stimulus payments have poured a significant chunk of that cash into investments, including Ethereum. In addition, cryptocurrency investing became extremely trendy in 2021, and Ethereum was one of the most popular cryptos in the market.
At the beginning of 2020, Cardano was trading at just 3.28 cents. When March kicked off, the cryptocurrency had risen to 4.75 cents as news of the virus spreading in China prompted concerns about a U.S. pandemic.
On March 13, 2020, Cardano plummeted to its pandemic low of 1.91 cents as global stock markets tanked. The good news for Cardano investors is that the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.
By Nov. 1, Cardano was back up to 9.31.
Cardano In 2022, Beyond: On Jan. 19, 2021, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including Cardano.
Investors are also optimistic about Cardano’s potential to challenge Ethereum (CRYPTO: ETH)
after Cardano recently launched smart contract capabilities and is working on increasing its transaction speed.
Cardano ultimately hit a new all-time high of $3.09 in September 2021, but has since pulled back significantly. Today, Cardano is trading back down at 60 cents.
Still, investors who bought Cardano on the day it hit its pandemic low and held on have generated a huge return on their investment. In fact, $1,000 in Cardano purchased on March 13, 2020, would be worth about $23,700 today.
Given the rise in Cardano prices in the past two years coupled with the loss of stimulus payment support in 2022, some investors are understandably concerned about just how much further Cardano prices could fall. Cardano and other cryptos are prone to boom-to-bust drawdowns, and Cardano prices are already down 67% in the past year.
