Cardano ‘overtakes’ Ethereum – Here’s why it matters to ADA holders

• Cardano witnesses a surge in development activity and outperforms Ethereum.
• Despite this, the activity on the network remains the same.

Development activity on Cardano [ADA] has seen a notable surge over the last few months. With multiple upgrades on the way for Cardano, the developers are getting busy and pushing large amounts of code.

According to recent data, due to this surge in development activity, Cardano surpassed ETH in developer activity on GitHub.

Developments on the rise

While this is a positive indicator of a busy development team pushing out frequent updates, it’s crucial to analyze the potential impact on Cardano’s standing.

On the positive side, this activity could translate into increased functionality and innovation for the platform. New features and functionalities could make Cardano more robust and versatile, attracting users and developers seeking advanced capabilities.

Additionally, surpassing Ethereum in development activity generates buzz and positions Cardano as a serious contender, potentially boosting investor confidence and the price of ADA.

However, a focus solely on development velocity can be a double-edged sword. Rapid development can lead to rushed code with bugs or security vulnerabilities.

It’s important to see if Cardano can maintain a balance between churning out code and thorough testing to ensure quality. Furthermore, an overemphasis on development can sometimes neglect user adoption.

Cardano needs to ensure the new features being built are relevant to user needs and actively promote their ecosystem to attract a user base.

Despite the rise in development activity on the Carano network, the overall active addresses on the protocol interacting within the Cardano ecosystem remained the same.

Source: Artemis

State of DeFi

In terms of the DeFi sector, there was a slight drop observed in terms of TVL(Total Value Locked) and DEX(Decentralized Exchange) volumes. This could be due to a temporary shift in focus towards non-DeFi features, users waiting for DeFi-enhancing upgrades, or simply increased competition.

Read Cardano’s [ADA] Price Prediction 2023-24

If DeFi metrics don’t recover or user interest wanes, it could lead to a decline in ADA price as well. However, if upcoming upgrades significantly improve Cardano’s DeFi capabilities and attract users back in, the sentiment around ADA could see a boost.

Source: Artemis

At press time, ADA was trading at $0.6328 and had grown by 3.60% in the last 24 hours, after falling from the $0.804 level in the last few days.

Source: Trading View