Cardano (ADA) has recently seen a 40% increase from its lowest point this month, yet it is still significantly down from its peak earlier this year by 45%. Despite being a major player in the cryptocurrency world, Cardano has been facing immense pressure in recent months. External data reveals a concerning trend in the decrease of interest among developers and investors. The number of monthly developer commits has dropped from 3,380 in May to 3,300 in June, and currently sits at less than 2,000 in the current month. Additionally, the amount of funds locked in Cardano’s DeFi applications has fallen from a peak of 633 million ADA in December 2023 to 538 million ADA as of Wednesday.
Market Share and Competition
Compared to newer blockchain platforms like Base, Blast, Sui, Mode, and Aptos, Cardano’s TVL of $247 million appears significantly lower. Unlike other major players such as Solana, BNB Chain, and Ethereum, Cardano lacks a major meme coin or decentralized exchange (DEX). Its largest DEX, Minswap, has only processed less than $1 million in transactions in the last 24 hours, a stark contrast to Solana’s Raydium, which handled $851 million. Moreover, Cardano has minimal market share in the declining NFT market, with sales totaling only $1.6 million in the past 30 days.
The number of Cardano addresses has plummeted to less than 30k, reflecting a decrease in user activity. Additionally, the amount of stablecoins present in the Cardano ecosystem is less than $20 million, indicating a lack of confidence and utilization of the platform.
The daily trading volume of Cardano has remained stagnant below $500 million since July 5th, highlighting a lack of interest and activity in the coin. In contrast, smaller meme coins like Pepe and Dogwifhat are handling over $700 million in daily transactions. This downtrend is also mirrored in the futures market, with data revealing a decrease in interest among traders to the lowest levels seen in months. Traders are predominantly concerned about Cardano’s underperformance and lack of developer engagement.
Technical Analysis and Future Outlook
Cardano currently remains below its 200-day moving average, indicating that the recent price recovery may be short-lived. While the current sentiment is gloomy, there is a glimmer of hope as the crypto fear and greed index is on the verge of flashing green amidst expectations of a Federal Reserve rate cut. If Bitcoin continues its upward momentum and breaks its year-to-date high of $73,400, ADA’s price may see a positive trajectory.
Leave a Reply