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How Cardano’s August growth did little to nothing to rescue ADA

A number of impressive upgrades and developments happened on Cardano last month. Unfortunately, this progress has not halted ADA’s underwhelming condition.

Published

1 year ago

on

  • Transactions on the Cardano blockchain and many tokens were minted on the network.
  • ADA’s momentum remained downward, the same as its TVL.

For most of August, Cardano [ADA] made progress across different channels, Input Output revealed. Usually, InputOuput, the development arm of the Cardano ecosystem gives updates on the project on a weekly and monthly basis.

Read Cardano’s [ADA] Price Prediction 2023-2024

According to the report posted on social media platform X (previously Twitter), the number of projects already built on Cardano reached 138. About 1,277 projects were in the building phase.

With two projects launched in August, Cardano seems committed to keeping its position as one of the top projects as per

development activity.

More builders on the chain

Besides new developments, there were a number of updates on already existing projects. For example, Input Output noted that the Hydra team released version 0.12.0 as an update to v8.1.2 to improve network resilience and enhance developmental commits.

For context, Hydra is a layer-two scaling solution for the Cardano blockchain that aims to increase the transaction processing capacity of the network by allowing openness between participants for off-chain transactions.

In another part of the report, Input Output made mention of the token policies and tokens minted on the Cardano blockchain. The blockchain infrastructure firm said, 

“The number of token policies increased by 850, and the number of native tokens minted on Cardano increased by 140k.”

However, the hike in tokens created on the blockchain failed to leave a positive impact on ADA. At press time, the value of ADA was $0.25— a 13.08% decrease in the last seven days. The token’s trading volume in the last 24 hours was around $101 million, which was also a decrease.

ADA may continue to fall

Typically, decreasing prices on dwindling volume implies increasing downward momentum. Therefore, it is unlikely for ADA to recover in the short term. And an array of token minting may not be the saving grace.

Source: Santiment

On another positive side, the number of transactions increased by 1.6 million in August. An increase in transactions of this height means that a lot of asset exchange occurred on the blockchain.

However, the hike in transactions did not translate to a rise in Total Value Locked (TVL). By definition, the TVL is the measure of the total digital assets staked on a protocol. Whenever the TVL increases, it means a protocol has become more trustworthy. 

Realistic or not, here’s ADA’s market cap in ETH terms

But when the TVL decreases, it implies that investors are refraining from depositing more liquidity into the said protocol. 

At the time of writing, Cardano’s TVL was $155.27 million which was an 11.48% decrease in the last 30 days. The decrease meant that fewer assets were locked in Cardano when compared to the value in July.

Source: DefiLlama

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