Will Cardano’s development activity be ADA’s saving grace?

• Cardano stood out from the market with its robust development activity.
• While ADA’s development surged, declining fees presented challenges for the protocol’s sustainability.

Amidst the resurgence triggered by Grayscale’s recent legal triumph, Cardano [ADA], along with several altcoins, found itself lagging behind the broader market upswing.

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

Development on the rise

However, a noteworthy shift was underway in Cardano’s development landscape, as it outpaced notable cryptocurrencies like Hedera [HBAR], Chainlink [LINK], and Cosmos [ATOM].

This heightened activity suggested a commitment to innovation and potential enhancements in the network’s capabilities.

In terms of recent activity on the Cardano network, a notable spike was witnessed in daily interactions and transaction volumes. This spike indicated growing user engagement and interest in the protocol.

Source: Artemis

Despite the overall positive trend, the decentralized exchange (DEX) volumes on Cardano have shown a decline over the past month. However, the total value locked (TVL) within the DEX ecosystem has continued to grow, indicating ongoing interest in Cardano’s DeFi sector.

Source: Artemis

While development and activity thrived, there’s been a noteworthy decrease in the fees generated on the protocol. Over the last month, fee earnings saw a 33% decline, according to Token Terminal.

A lot at stake

In the realm of staking, Cardano has been witnessing a steady increase in the number of ADA holders participating as stakers. However, it’s crucial to note that the reward ratio for ADA stakers has experienced a decline.

This adjustment could influence staking behavior and the overall staking landscape.

Source: Staking Rewards

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Shifting our focus to price and trading dynamics, Cardano’s price experienced a dip, settling at $0.263. Simultaneously, the trading volume exhibited a significant spike, reaching a substantial 237.35 million.

Source: Santiment

Delving into trader sentiment, a remarkable trend emerges. Short positions have surged to 52.13%, signifying a prevailing bearish sentiment among traders. This sentiment could be driven by a multitude of factors, including market developments and technical analysis.

Source: Coinglass