Latest reports disclose that Cardano (ADA) made a 54 percent surge in its 24-hour trading volume. 
Analysts, however, question the reason for such a sharp surge, linking it to the increasing selling pressure rather than buying interest. 

Cardano (ADA) makes an incredible turn to drive its derivative and spot market to $1 billion after recording a whopping surge of 54 percent in trading volume. According to reports, this constitutes 5.88% of the total market cap of $18,109,521,029. In the past 24 hours, ADA has surged by 4.3% in addition to a 4% weekly run, trading at $0.510835. 

The sharp surge in its trading volume has called for an examination of its price behavior over the past couple of months. According to analysts, ADA had staged a continuous decline since mid-December until the current mini rally. In the current cycle, there is no visible support level, indicating a potential decline into the $0.38 price zone in a downward movement that could rub off 22% of its value.

Interestingly, the considerable surge in trading volume has become a big surprise as the required metrics do not support such a move. According to some analysts, this move is largely attributed to the increasing selling activities rather than the positive change in buying interest among Cardano investors and traders. 

It is interesting to note that the current run cut across almost the entire crypto sector as Bitcoin makes a 3.6% surge in the last 24 hours. Solana has within the same period added 5% to its value, with the likes of Ethereum, Dogecoin, Polkadot, etc making a positive run. 

Analyst Speak on Cardano (ADA) Use Cases 

Cardano’s long-term bullish potential has been confirmed by several analysts and Influencers including Cheeky Crypto. According to him, Cardano has several relevant use cases that can propel its price. He also admitted that the project has over the years rebuilt confidence by ensuring that technology that secures transactions is encouraged. The analyst pointed to Cardano’s effort to offer financial services to about 1.7 billion unbanked individuals across the globe.

He further mentioned that Cardano has through the use of a layer-two scaling solution, Hydra, improved the transaction throughput. The Hydra team recently started its yearly roadmapping sessions to release a breaking API change to remove the JSON encoding of transactions. 

In its weekly development report on February 2, Cardano disclosed that 157 projects have been launched on the network with 1322 projects building. Also, 83.2 million transactions have been recorded on the network. The report also mentioned the plan of Cardano’s education team to start a Cardano developer training course in collaboration with the Africa Blockchain Center (ABC). The Mithril team is, on the other hand, working on a new data type to certify Cardano transactions within its network. 

They completed the signature of the transactions set and implemented the aggregator route, responsible for generating proofs of membership for a list of Cardano transactions. Additionally, they finalized the manual workflow to test the NPM client package in the CI and enhanced the resilience of computing the list of immutable files in a Cardano node database. The team also expanded the coverage of end-to-end tests in the CI to accommodate multiple versions of the Cardano node and various hard fork scenarios.

 

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Filed under: Bitcoin - @ February 9, 2024 5:17 am