Bitcoin and the broader crypto market came under strong selling pressure soon after the US SEC rejected all seven spot Bitcoin ETF applications last Thursday. However, Cardano (ADA) is showing improved on-chain activity.
Despite the suppressed market conditions, Cardano has reported in on-chain transaction volumes in comparison to the local top in April. Since late January, the weekly on-chain transaction volumes for ADA have surged by 1,700%. Also, the current discussion rates around ADA show that the trader interest remains intact.
Utility plays a crucial role in any potential rebound, and when coupled with substantial social dominance of $ADA, it continues to hold promise, reported Santiment.
On the other hand, Cardano’s DeFi ecosystem is also showing signs of strength this year. Its smart contracts ecosystem boasts more than $15 million in stablecoins with over $35,000 daily active addresses on its DeFi protocols.
Data from Defilama indicates that the Cardano network currently boasts a total value locked (TVL) of approximately $160.36 million, marking a significant uptick since January 2023.
Cardano (ADA) Price Prediction
Throughout this year of 2023, Cardano’s ADA price has been oscillating in the range of $0.25 to $0.40. As of now, ADA is trading towards the lower end of the range at 25 cents. Cardano’s price has undergone a third test of a critical support zone this year. In contrast to the cryptocurrency bear market of the previous year, Cardano’s price has seen reduced losses, hinting at the possibility of a sustained recovery that might lead the digital asset to revisit its all-time high (ATH) of roughly $3.
Nonetheless, should Cardano’s bullish momentum falter in safeguarding the 25 cents support zone, cryptocurrency experts anticipate the price may potentially decline further, possibly reaching around 18 cents in the upcoming weeks.
Cardano’s smart contract ecosystem is flourishing, experiencing robust growth in Total Value Locked (TVL) and on-chain activity. Although short-term price challenges persist, the network’s utility and continued trader interest paint a promising outlook, potentially including a resurgence to its previous All-Time High (ATH).
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.