Cardano Price Plunges Over 13% Amid Fed Chairman's Hawkish Comments

Cardano's ADA token plummeted over 13% in a week, hitting its weekly low after Federal Reserve Chairman Kevin Warsh's Jackson Hole speech. The sell-off coincided with his comments on inflation trends not having 'meaningfully improved.' This is not an isolated incident, as the entire crypto market reacted similarly to the hawkish tone.

Warsh emphasized that inflation needs to move towards the Fed's 2% target 'clearly and at sufficient speed' or there's still work to be done. His remarks cooled risk appetite across the market, including stocks and cryptocurrencies.

Cardano's governance proposal is also facing a hurdle. A live vote to rebuild the Constitutional Committee requires support from Stake Pool Operators (SPOs), but as of August 29, they were short of the required 51% threshold. Delegated Representatives (DReps) had nearly reached their goal of 67%, however.

Despite the price drop, on-chain activity tells a different story. Cardano's weekly DEX volume spiked 1,551% to $151 million over seven days, with a record daily high of 245.31 million ADA traded on August 22. This suggests capital is repositioning within the network rather than fleeing.