Cardano spikes 90% and ecosystem explodes – Will it drive ADA price to $5?

  • Cardano has recorded a significant rise in its ecosystem development.
  • ADA is suited to make a rally in the near future owing to these developments.

The Cardano (ADA) network has reported an impressive 90 percent jump in daily active address activity. Cardano founder Charles Hoskinson confirmed the news by quoting a tweet posted by the ADA-focused handle, Adverse News. According to reports, the number of delegated wallets on the blockchain rose to 1.2 million.

Cardano blockchain data has shown a consistent rise in on-chain action for about a month. The network has recorded a steady increase across several different parameters, including total value locked (TVL), new daily wallet creations, payment transactions, and wallet delegators.

Interestingly, the spike in on-chain activity has not reflected positively on ADA’s price. In the last 7 days, ADA’s price has dropped 5 percent, according to data from CoinMarketCap. As of press time, Cardano is trading at $0.3141. However, the token’s 24-hour analysis shows that bulls are in control and pushing the ADA/USD pair into an upward trend. Although bulls successfully pushed ADA to $0.3173 yesterday, their support eventually weakened.

Could it be selling pressure?

Cardano may be enjoying increased on-chain activity due to selling pressure spurred by ADA’s disappointing performance. Speculations suggest that the increased on-chain activity might be traders trying to reduce their exposure to a failing market or simply taking profits to prevent loss. Traders moving tokens, especially large traders, tend to directly affect network activity.

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Another theory besides selling pressure is developer activity. Currently, the market is experiencing increased activity among blockchain developers, with Cardano as one of the most active projects in the industry.

Although Cardano recorded a nearly 100 percent jump, several other blockchains are also in the same league. According to market tracker Nansen, the Optimism, Fantom, and Arbitrum networks are three of the top 10 blockchains with more active addresses over the last week. However, all three lag behind the daily 1.2 million active addresses recorded on the BNB Chain in the same period.

Cardano projects are halting

Cardano-focused Twitter account recently posted that two projects – Orbis and Ardana – are being discontinued. According to an official Ardana tweet, the decision is necessary due to uncertainty surrounding “funding and project timeline.” In a follow-up tweet, the project also noted it is stopping work on its dUSD stablecoin:

Development on Cardano has been difficult with a lot of funding going into tooling, infrastructure and security. This alongside the uncertainty around development completion has led to the best course of action being halting development of dUSD.” 

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Earlier this year, Ardana had announced its products were ready but believed Cardano was not the best network to launch. Ardana said the problem is that Cardano’s underlying network is not the best for “any protocol dealing with liquidations,” adding that launching would risk user funds. Regardless of the official halt, Ardana will leave its project open-source with the hope that a different team will pick up where it left off.

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