Cardano [ADA], the eighth-largest cryptocurrency, has showcased some vital signs of life in the past two weeks. Kudos to the developments across the network that really triggered investors’ confidence. However, that being said, the network’s native token, ADA, didn’t quite show the same enthusiasm.
At press time, ADA was trading around the $0.46 mark after recording a 1.5% hike. Needless to say, the network needs more push to really carry the token across the $0.5 milestone.
Can this help?
Cardano’s long-awaited Vasil upgrade, which aims to improve the network’s scalability and performance, had “successfully” gone through the testnet. Soon, other developments raised a green flag to highlight the success.
The eighth-largest blockchain in the world, enjoyed high activity from developers. According to data harvested from Santiment, Cardano registered the highest level of daily developer activity on a week-to-week basis.
Considering the graph given below, Cardano continues to lead the way in the development activity as compared to other tokens within the crypto space.
Source: Santiment
But there’s more to come in the pipeline as stated in a 5 July interview with Duncan Couttus, Cardano’s Principal Technical Architect:
“There are a lot of things that I’m excited about in the coming months for Cardano. We have many new technical developments in the pipeline. Some of them are happening sooner than others, but all of them will have big impacts on our community.”
Needless to say, such narratives could boost morale of the ADA holders. This could help the token surge post the $1 mark. In fact, Cardano’s price potentially could surge to $2.9 by September, before plunging to end the year trading at around $1.11. Here’s a graph that highlights the said prediction:
Source: Cardano Blockchain Insights
The $1.11 mark would be worth noting as it would signal a 140% rise from ADA’s current $0.46 price tag.
What about ADA’s short run?
Cardano’s native token rarely has had any significant jump this year. Even now, the price continues to consolidate under the $0.50 mark. This could be a worrying sign both for the developers working on the network as well as the ADA holders.
In addition, the 30-day trading returns or MVRV ratio have faded to a low level. At the time of writing, ADA’s MVRV (30 days) ratio stood at -2.66% as per Santiment.
? The average trader over the past 30 days has rebounded to a -3.5% return for $BTC, +1.9% for $ETH, +4.0% for $BNB, and -2.9% for $ADA. Generally, there is less risk being invested in assets where trader returns are still in the negative. https://t.co/EXp92WuNlZ pic.twitter.com/VZT1EByVxi
— Santiment (@santimentfeed) July 7, 2022
Can this help ADA showcase a price bounce in the future? Indeed, yes. But for now, the current scenario signifies low self-esteem for ADA traders/investors.
