Cardano Wallet Activity Declines Amid Market Recovery
Cardano, one of the leading cryptocurrencies in terms of market cap, has witnessed a decline in wallet activity amidst the ongoing global market recovery. This latest development has sparked speculation within the crypto community, as members ponder the potential cause and its impact on the token’s price.
The global crypto market seems poised to begin the new week on an upward trajectory. According to data from CoinMarketCap, the overall crypto market capitalization has experienced a noticeable 1.33% growth in the past day, reaching 2.38 trillion. As a result, the majority of tokens in the market are trading in the green zone, as indicated by the crypto heat map. Furthermore, the sentiment surrounding the crypto market appears positive, as evidenced by the crypto fear and greed index. However, things don’t seem to be going as smoothly for Cardano (ADA).
The number of active Cardano (ADA) wallets has seen a decline of 0.13% over the past three months, according to recent data released by Santiment, a cryptocurrency tracking intelligence tool. This data emphasizes that ADA is one of the few networks experiencing a drop in wallet activities. In contrast, Bitcoin, the largest cryptocurrency by market cap, has seen a significant increase in active wallets over the last 90 days. The provided data shows that the number of non-empty BTC wallets has grown by 2.6% during this time. The data also mentions Dogecoin (DOGE), the largest memecoin by market cap, revealing a staggering 13.8% increase in non-empty Dogecoin wallets over the past three months.
Source: X/ Santiment
Furthermore, Cardano has experienced a significant dip in the last month, not just in terms of wallet activities but also in its token price, causing concern among investors. According to data from CoinMarketCap, the price of Cardano (ADA) has decreased by over 28% within the recorded time frame. Looking at the weekly chart, ADA has also declined by 5.40% in value over the past seven days. As of now, the coin is being traded at $0.46, reflecting a 1.59% increase in the last 24 hours.
These declining numbers could indicate either an undervaluation opportunity or serve as a cautionary sign of waning interest in Cardano. However, it is crucial to consider the bigger picture. The entire cryptocurrency market is currently shrouded in uncertainty, and fluctuations in user behavior are not uncommon. As projects adapt to changing market conditions, periods of decline and consolidation often precede periods of renewed development and a bull market.
With the recent upgrade to the Cardano network, which has enhanced its capacity, all eyes are now on the token’s price reaction, with hopes that it will rebound and reach new highs in the coming months.
Tags:
Bitcoin (BTC)
Cardano (ADA)
Dogecoin
