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What Cardano’s 400% surge in addresses says about the sentiment of ADA investors 



Cardano news, price, and active addresses
Source: StockAI

  • 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.

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.

Cardano volume and development activity

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.

Cardano price action and daily active addresses

Source: Santiment

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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