Can Cardano bulls prop up ADA’s rally
- ADA surged in terms of price after the Bitcoin ETF approval.
- Cardano’s ecosystem saw growth, but there were some challenges.
Cardano [ADA] recently emerged as a positive performer in the cryptocurrency market, riding the momentum generated by the approval of Bitcoin’s spot ETF.
In the last 24 hours, ADA witnessed an impressive surge of 13.31%, reaching a trading value of $0.5853. This surge was indicative of the positive sentiment surrounding ADA and its potential for growth in the market.
ADA sees green
The surge in ADA’s price is accompanied by a noteworthy increase in the overall number of addresses holding ADA. This uptick suggests growing interest and participation among investors and users, which can be seen as a positive signal for the cryptocurrency.
However, it’s essential to note that despite the surge in price and increased addresses, the velocity of ADA’s trading activity has experienced a decline. Investors should carefully consider this aspect when evaluating the sustainability of ADA’s current momentum.
Beyond price movements, Cardano’s ecosystem saw impressive developments, particularly with its Mithril upgrade.
Since launching its mainnet in June, the network has consistently operated without interruptions, courtesy of the growing engagement from dedicated Stake Pool Operators.
This positive growth within the Cardano ecosystem, driven by Mithril, could enhance the overall appeal and functionality of the network.
🙏 Kudos to Mithril pioneer SPOs for their unwavering support.
👉 For more details on the Mithril… pic.twitter.com/LSjBkBKQID
— Input Output (@InputOutputHK) January 10, 2024
Some troubles ahead
While ADA’s recent performance was promising, it’s crucial to examine certain indicators that might pose challenges.
Although Cardano’s revenue experienced robust growth, soaring by 92.7% in the last month, there was a steady decline in core developers on the network.
This decline could raise concerns about the network’s future development and innovation potential, as a robust developer community is vital for the sustained growth of any blockchain ecosystem.
Moreover, the Cardano NFT ecosystem also witnessed a decline in interest, reflected in decreasing volume over recent weeks.
NFTs have been a significant part of the crypto landscape, and a waning interest in Cardano’s NFT sector could impact the network’s vibrancy and community engagement negatively.