How Cardano keeps dominating Ethereum despite price decline
Cardano’s weekly development report pointed out the work done by the blockchain’s teams over the last seven days while ADA remained under the bears’ influence.
- Cardano’s development activity was substantially higher compared to Ethereum.
- ADA’s price dropped by 6% last week, but there was a possibility of a trend reversal.
Cardano [ADA] has outperformed the king of altcoins, Ethereum [ETH], by a huge margin in terms of development activity. In fact, data suggested that ADA’s development activity consistently remained three times higher than Ethereum.
Read Cardano’s [ADA] Price Prediction 2023-24
This metric has been reflected in the blockchain’s efforts to push out new updates over the last few months, the latest being the Mithril mainnet upgrade.
When comparing @Cardano's dev activity to @Ethereum, the dedication of @IOHK_Charles @InputOutputHK's team shines through. #Cardano's Github repository boasts 3x the development activity of #Ethereum. pic.twitter.com/mIiqKVrDa7
— Ali Charts (@alicharts) August 4, 2023
Cardano’s development activity remains high
It was interesting to note that Cardano’s development activity rose substantially over the last month. Its development activity contributor count also remained high.
A major reason for this uptrend can be attributed to the recent Mithril mainnet launch, which aimed to reduce the time required for nodes to sync with the blockchain.
After the mainnet update was pushed, Cardano’s multiple teams continued to work on other projects, which were highlighted in the blockchain’s latest edition of its weekly development report.
As per the report, Mithril mainnet has been consistently producing new certificates and snapshots. The Mithril team also worked on upgrading the Cardano node to v.8.1.2, fixing the release-preprod network that stopped producing certificates.
This week’s #Cardano development update is live on #EssentialCardano!
Read the report to learn about the latest on core technology, wallets and services, smart contracts, scaling, governance, #ProjectCatalyst, and #Cardano education. https://t.co/6DOQ2DXVMQ pic.twitter.com/P2MUJNmOMi
— Input Output Group (@IOGroup) August 4, 2023
Apart from the BASHO team, the Plutus core team worked on adding decentralized governance support, as defined in CIP-1694, to Plutus v3. The Lace team continued the implementation of Posthog analytics and dedicated efforts to add Trezor support and implement the multi-delegation feature.
The report also mentioned updated statistics of the Cardano blockchain. The blockchain’s total transactions reached 72.7 million, while its native tokens exceeded 8.6 million.
Moreover, the number of projects building on ADA reached 1,271, while the number of projects launched touched 136.
ADA investors aren’t content
While development activity remained high, the native token’s price action turned bearish. As per CoinMarketCap, ADA’s price declined by more than 6% over the last week. At press time, it was trading at $0.2915 with a market capitalization of over $10 billion.
The price drop caused its MVRV Ratio to plummet. Additionally, negative sentiment around Cardano also remained relatively high. However, the whales continued to show interest in ADA, as evident from its high whale transaction count.
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The good news was that the bearish price trend might come to an end in the coming days. This possibility was pointed out by Coinglass. According to the chart, Cardano’s Open Interest was declining.
A drop in the metric usually means that the on-going market trend might change, giving hope for a price uptick.
