Altcoin
What Cardano’s 400% surge in addresses says about the sentiment of ADA investors
Posted:
editors
- Cardano’s active addresses climbed 4x despite declining market confidence
- Regardless of the spike, most parts of the ADA ecosystem remained in in the lurch, leaving ADA with less likeliness of exiting the bearish region
Since the investors’ loss of confidence in the market after the FTX crash, there has been little buzz surrounding crypto projects. However, Cardano [ADA] seemed to have become a safe bet. According to the Cardano-attentive update provider, ADA’s Daily Active Addresses (DAA) increased by 400% on 13 November.
BREAKING: Cardano $ADA new daily addresses increases 400% since FTX $FTT collapse.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) November 13, 2022
Read Cardano’s [ADA] price prediction 2023-2024
The recent development might, however, still be linked to investors losing faith in centralized exchanges. Although the ecosystem wasn’t involved in providing exchange services, Cardano is still well-known for being a fully decentralized blockchain.
Thus, there has been an uptick in the number of unique addresses transacting on the Cardano chain. Similarly, deposits via the Cardano network on the said date were incredibly impressive.
Crest and troughs for ADA
Despite investors’ trust, the situation of the chain wasn’t all positive. According to Santiment, ADA’s development activity had slumped.
At press time, the on-chain analytic platform showed that development activity had decreased massively to 81.89. For context, it was as high as 189 on 2 November. This implied that the project’s commitment to improving the ecosystem or working on upgrades remained gloomy.
Source: Santiment
However, there was some respite in an area visibly impacted by the active address surge — the trading volume. After falling to 362.16 million earlier, ADA’s trading volume surged to 495.96 million, as seen from the image above. It implied that these active addresses have been involved in exchanging buy and sell orders on the network, heedless of whether they turned into gains or losses.
Additionally, none of these metrics proved that ADA could suddenly revert to bullish traits, as it lost 19% of its value in the last 24 hours. According to CoinMarketCap, ADA’s price initially grew from $0.312 to $0.329. However, it subsequently shredded off 1.39% in the last 24 hours. In considering the price-DAA divergence, the signals seemed to be in contrasting positions. With a -42.3% decrease, the price-DAA state indicated that the current ADA momentum did not signify a buy signal.
Similarly, the recent market tide has left many investors in losses. So, the price-DAA was neither in support of selling the asset for any unrealized profit. The trend prevailed in a state where investors might need to be cautious of volatility. Finally, investors expecting a significant uptick might need to lower their anticipation.
Source: Santiment
