Altcoin

Can Cardano’s development activity play a key role in ADA’s survival

Published

2 years ago

December 3, 2022

Saman Waris

Source: Pexels

Cardano outperformed other crypto currencies in development activity
Its NFT floor prices grew while volume declined

On 2 December, 2022, Santiment revealed that Cardano [ADA] topped the list of development activity over the last 30 days. ETH, thus, out-performed currencies like Polkadot [DOT] and Ethereum [ETH]. This spike in development suggested that there may be more updates and upgrades making their way to the Cardano ecosystem.

?‍? #Cardano is head and shoulders above all other #crypto assets on development activity. Our #github tracking data filters out routine updates like #Slack updates.

For more on @santimentfeed's methodology for tracking development activity, read here: https://t.co/vWQCE4a1nv pic.twitter.com/4KQaCUi1ts

— Santiment (@santimentfeed) December 1, 2022

Read Cardano’s [ADA] Price Prediction 2022-2023

Besides improvements in development activity, Cardano also witnessed some growth in the NFT space. According to a tweet by Stocktwits NFTs, multiple Cardano NFT floor prices reached their all-time high over the last few weeks.

Awesome data and a few quick takeways?

✅ @book_io the quickest to top gainer has the best "normie"/onboarding utility
✅ @MallardOrder has become one of the loudest communities on ADA
✅ @WildTangz one of the most active builders

Highlighting variety in ADA NFTs https://t.co/CdKqM1HP19

— Stocktwits NFTs (@StocktwitsNFTs) December 1, 2022

Not all roses for Cardano

Cardano, despite its growing floor prices, witnessed a decline in NFT volume. According to data provided by opencnft, Cardano’s NFT volume plummeted by 50.93% and the number of NFTs sold had fallen by 19.35% in the past 30 days.

Source: opencnft

In terms of DeFi, Cardano’s total value locked (TVL) witnessed an uptick after 22 November. As of 2 December, the Cardano’s TVL was at $58.62 million, and witnessed a decline by 1.37% between 1 and 2 December.

Additionally, Cardano’s dApps continued to witness a decline in activity. According to DappRadar’s data, dApps on the Cardano network such as Miniswap and SundaeSwap observed a slump in terms of unique active users. Unique active users for Miniswap dwindled by 20.68% in the last seven days. For SundaeSwap, the number of active users fell by 12% during the same period.

Source: DefiLlama

Cardano on other fronts…

Coming to on-chain metrics, Cardano’s volume depreciated immensely over the last month.

Since 2 November, Cardano’s volume fell from 464 million to 204 million in 30 days. Its Market Value to Realized Value (MVRV) long/short difference was in the negative as well.

This implied that short-term holders could exit their positions and still be profitable. However, long-term holders would have to wait out the bear market before seeing any signs of profit.