Cardano Is Seeing Strong Fundamental Growth Despite ADA’s Disappointing Price Performance
The Cardano network has reported a significant increase in daily address activity that has reached 90% after the number of delegated wallets on the network reached the massive milestone of 1.2 million. addresses,
Unfortunately, Cardano is notorious for its fundamental growth while the price of its underlying asset, ADA, remains stable. However, the activity of holders on the network is often directly related to the price performance of assets.
Meanwhile in Cardanoland https://t.co/YazNexsgKd— Charles Hawkinson (@IOHK_Charles) November 24, 2022
In the past seven days, Cardano has increased its value by more than 2.8%, despite the gloomy state of the cryptocurrency market. The main reason behind the positive price performance could be the growth of fundamental metrics on the network.
In general, Cardano is trending bearish from 2021. The main reason behind this is usually linked to the large percentage of retail holders of ADA and the lack of institutional exposure, which usually acts as the main driver for digital assets.
The spike in 24-hour address activity could also be the result of selling pressure reflected in the past two red days for ADA in the market. Whenever large holders are ready to take profits or limit their exposure to an asset, they move large amounts of tokens or coins from their cold and hot wallets to exchanges, driving network activity to local highs. reaches.
The positive reason behind the sudden increase in activity can be linked to the increased activity of blockchain developers, which is a strong fundamental boost for any network or blockchain-based project. Thankfully, Cardano is one of the most active developer crypto projects in the industry, which is the main reason why one of the oldest networks on the market is still blooming.