Cardano: Sinking development activity, price dips and more

• Cardano’s total number of transactions exceeded 70 million, while native tokens reached 8.51 million.
• ADA was down by over 3% in the last 24 hours, but a key metric suggested a trend reversal.

On-chain metrics revealed that Cardano [ADA] witnessed a substantial decline in development activity last week. However, Cardano’s weekly development report told a different story. While this happened, ADA’s price action continued to support the bears. However, a look at the derivatives market suggested that the scenario might soon turn in the bulls’ favor. 

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This is what Cardano’s last week looked like

As per Santiment’s chart, ADA’s development activity dropped considerably over the last week. This is a negative signal for a blockchain, as it means fewer efforts were made by developers to improve the network. 

Source: Santiment

However, Cardano’s weekly development report told a different story, as it mentioned the work done by all of its different teams last week along with updated network stats. As per the report, the Hydra team implemented end-to-end functionality for external commits, and tested it on the preview environment. The Mithril team created a new distribution pre-release, 2327.0-pre, and initiated testing of the new production signer deployment model with the pioneer SPOs.

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— Input Output (@InputOutputHK) July 9, 2023

On the other hand, the Voltaire team continued conversations on CIP-1694 to establish an initial Minimum Viable Governance (MVG) framework. To clear the air, this framework is crucial for the advancement of participatory governance within the Cardano ecosystem.

Apart from these developments, the weekly report also mentioned updated statistics on the Cardano blockchain. As per the report, the blockchain’s total number of transactions reached 70.6 million. Not only that, but the number of native tokens exceeded 8.5 million. It was also mentioned that to date, 134 projects have been launched on Cardano, while over 1,200 are being built on the blockchain. 

ADA continues to struggle

Though the development seemed robust, it could not lend a helping hand to ADA’s price performance. According to CoinMarketCap, ADA was down by more than 1.4% and 3.5% in the last 24 hours and in the previous week, respectively. At the time of writing, ADA was trading at $0.2825 with a market capitalization of over $9.8 billion. 

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Over the last week, ADA’s 1-week price volatility has also fallen sharply. Interestingly, despite the price decline, the token’s social dominance and transaction volume remained relatively high. ADA’s velocity also increased, meaning that ADA was used in transactions more often within a set time frame.

Investors might have a reason to rejoice as a major metric gave hope for a price uptick in the coming days. As per Coinglass, ADA’s open interest declined sharply. A drop in the metric usually meant that the on-going price trend can come to an end soon. 

Source: Santiment