Cardano Faces Price Decline Amid Reducing Network Activity and Diminished User Engagement
The post Cardano Faces Price Decline Amid Reducing Network Activity and Diminished User Engagement appeared on BitcoinEthereumNews.com.
Cardano (ADA) is facing significant downward pressure as network growth declines and user engagement diminishes, resulting in a notable price drop this week. The price of ADA has decreased by 7.4% over the past 72 hours, trading at $0.338 as of October 25, effectively wiping out gains made earlier in the week. “The decline in ADA’s price reflects shifting investor sentiment and a broader bearish trend among many altcoins,” market analysts warn. Cardano struggles with a 7.4% price drop amid reducing user engagement, highlighting the altcoin’s recent challenges and bearish market trends. Network Activity and Its Impact on ADA Prices The recent performance of Cardano (ADA) has raised concerns among investors. The cryptocurrency has experienced a significant downturn in user engagement, evident from the decrease in active addresses on the Cardano network. The number of active addresses has plummeted from 71,270 on March 6 to just 25,680, according to data from IntoTheBlock. Declining Total Value Locked (TVL) on Cardano In conjunction with falling user engagement, the total value locked (TVL) on Cardano is witnessing a downward trajectory. As per DefiLlama, TVL has decreased over 55%, from approximately $480.72 million in March to about $214.8 million currently. This trend signals that fewer users are interacting with the ecosystem, negatively affecting the demand for ADA tokens. ADA’s Underperformance Compared to Bitcoin ADA’s struggles have not occurred in isolation, as it continues to underperform compared to Bitcoin (BTC). Year-to-date, BTC has surged approximately 52%, while ADA has declined by 43%. This stark contrast has led to a growing mismatch in the ADA/BTC trading ratio, which has dropped to a near-all-time low of $0.00000503 on October 25, reflecting eroding investor confidence in ADA. Market Sentiment and Bearish Trends The prevailing market sentiment has added to Cardano’s challenges. With many altcoins under pressure, ADA’s recent…
Filed under: News - @ October 25, 2024 3:21 pm