- Cardano (ADA) price has retested the support level around 25 cents three times YTD.
- Cardano’s on-chain transaction volume has scaled over 1,700 percent YTD despite ADA’s suppressed market value.
One of the top smart contracts-oriented layer one (L1) blockchains, Cardano (ADA), could be on the verge of market reversal after being trapped in a bearish trend in 2022 and horizontal accumulation YTD. The altcoin is undeniably approaching a crucial decision zone that could either oversee a market reversal or a continued price correction.
The possibilities of a market reversal are, nonetheless, high based on on-chain activity that has significantly grown YTD. However, should Bitcoin price continue to fall in the coming months, Cardano (ADA) could not be spared as further bleeding could be recorded across the board.
Impressive Cardano (ADA) On-chain Activities
According to a Cardano (ADA) on-chain analysis conducted by market intelligence platform Santiment, the total transaction volume has risen by about 1,726 percent since late January. Additionally, the rate of Cardano’s discussion rate on social media platforms has been relatively higher compared to the beginning of the year, hence indicating a notable demand from crypto traders.
📈 .@Cardano is still seeing rising #onchain transaction volume despite its suppressed market value compared to its April local top. Utility plays an important role in any bounce, and this combined with adequate $ADA social dominance, is still promising. https://t.co/EbGxIN8wFd pic.twitter.com/Y9SRtbXLFq
— Santiment (@santimentfeed) September 4, 2023
According to market data provided by defillama, the Cardano network had a total value locked (TVL) of about $160 million on Monday, and over 35k daily users. Notably, the Cardano network had a total of $15.31 million in stablecoins market capitalization, with its algorithmic Djed stablecoins leading with about $10.81 million in TVL.
Despite the suppressed Cardano market value, more ADA have been staked YTD, compared to the same period last year. Some of the notable DeFi protocols on the Cardano network include Minswap with over $41 million in TVL, and Indigo with about $35 million.
The impressive Cardano on-chain network is largely attributed to the rising utility of its DeFi protocols. Moreover, the Cardano network supports key blockchain-oriented initiatives like NFT projects.
In 2021 Cardano quite literally was just a wallet. In 2023 I have email, social media, investments, music, art, mining revenue, books, movies, digital identity, activity points and revenue from real world assets all tied to it. Forget about price for a bit, utility has gone 100x
— ADA whale (@cardano_whale) September 4, 2023
Bigger Picture
The Cardano network has registered over 74.4 million on-chain transactions since its inception, at a blockchain size of about 134.81 GB. In the past 24 hours, the Cardano network recorded about 43,808 on-chain transitions after finalizing 4,178 blocks. According to the latest crypto data provided by Coingecko, the Cardano network had a total market capitalization of about $9 billion and an average 24-hour traded volume of approximately $100 million.
Meanwhile, the Cardano network has called on the community to participate in the ongoing project catalyst fund10 proposal, as it is expected to be closed on September 14. Several projects have presented their proposals for the voting process in a bid to obtain the community’s support in future developments.
Remember to vote for your favorite #ProjectCatalyst #Fund10 proposals before 11 am UTC on Sep 14!
🗳️ Voting window: Aug 31 – Sep 14
⚡ Results: ± Sep 21https://t.co/XIvqTyYvnn#Cardano @danny_cryptofay #CardanoCommunity pic.twitter.com/MBDqdYSaAk— Input Output (@InputOutputHK) September 3, 2023
The Cardano network’s DeFi developments are crucial for future growth prospects amid the mainstream adoption of digital assets and blockchain technology. Moreover, increased DeFi projects reciprocated to higher market value for the native token ADA.
