- Cardano’s (ADA) network activities are booming as its total transactions cross 110 million, a move reportedly fueled by the rising DeFi activities, increasing use of smart contracts, etc.
- The price of ADA is, however, failing to react positively as it slumps below a crucial support level.
Cardano (ADA) has reached an incredible milestone, surpassing the 110 million level in total transactions according to the latest report by analytics and Decentralized Finance (DeFi) platform TapTools. In an X post, TapTools highlighted that this development underscores the significant surge in network activities and usage amidst the ongoing market struggles.
Technically, the network boom has been linked to recent partnerships, network changes, and the increasing use of Smart Contracts. As indicated in our previous news brief, Cardano has partnered with BitcoinOS to launch the Bitcoin bridging system to enhance security and efficient cross-chain transactions.
A few days later, Cardano announced the release of Node v.10.4.1, which was made up of Unspent Transaction Output – High Density (UTXO-HD), meant to boost the speed and the scalability of the blockchain, as also explained in our earlier news coverage.
Fascinatingly, its cumulative updates over the past 12 months have contributed to Cardano’s position above Ethereum in terms of the total number of core development commits. Based on the available data, Cardano has developer commits of 21258 across 550 core repositories. Comparatively, Ethereum has 20950 total commits.
Above all, Cardano has around 38 ongoing projects in the building process alongside 3888 public GitHub repositories. Meanwhile, the price of ADA continues to decline.
According to our market data, the asset has plunged below a crucial support level at $0.70, trading at $0.68 at press time. On its weekly and monthly price charts, ADA declined by 10% and 2%, respectively. Meanwhile, it is attempting to overturn the current trend on its daily price chart with a 0.90% gain.
Looking at the Relative Strength Index (RSI), ADA appears to have plunged into bearish territory with a reading of 42. This aligns with the MACD chart, which suggests ongoing concerns amongst traders. Contrary to this, the 24-hour trading volume of the asset has fairly appreciated by 9%, with $614 million changing hands.
As discussed in our last analysis, Cardano co-founder Charles Hoskinson believes that there could be a bullish reversal that could send the price all the way to $10. For this to happen, he highlighted that the price should first break multiple resistance levels to breach its first target at $3, and subsequently break the $5 level.
Similarly, analyst Jad Mubaslat (aka Deezy) has also predicted that the asset could surge by 1000% from the current level to hit $7. As featured in our recent news post, Kris Does Crypto thinks that the $5 level is more realistic and could be achieved with minimal effort. In the short term, ADA is expected to be 50% cheaper.
As discussed earlier, the DeFi sector of the Cardano ecosystem has been tipped to fuel its near and medium-term growth to $5 – $10. Interestingly, this implies that the market cap would have to be around $350 billion, a level far less than the valuation attained by Ethereum in the previous cycle.
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