Altcoins
Cardano Price ‘Seeing Maximum Downside’ as Altcoins Rebound
Cardano has risen after bottoming at $0.3174 earlier this month
Cardan (ADA) has rebounded 40% from its low this month, but remains 45% below its high this year. Despite being one of the largest cryptocurrencies, Cardano has faced severe pressure in recent months, with its market cap falling from over $90 billion in 2021 to $15.9 billion on Wednesday.
External data indicates that interest in Cardano among developers and investors has waned recently. According to DeFi Llama, the number of monthly developer commits has dropped from 3,380 in May to 3,300 in June, and is currently below 2,000 this month.
Additionally, the amount of money locked in Cardano’s DeFi applications has decreased from a record 633 million ADA in December 2023 to 538 million ADA on Wednesday. Its TVL of $247 million It is much smaller than newer blockchains like Base, Blast, Sui, Mode, and Aptos.
Unlike Solana, BNB Chain, and Ethereum, Cardano does not have a major meme coin or decentralized exchange (DEX). Minswap, its largest DEX, handled less than $1 million in transactions in the last 24 hours, while Solana’s Raydium processed $851 million.
Cardano also has a limited market share in the declining NFT market as managed $1.6 million worth of sales in the last 30 days. The number of Cardano addresses has dropped to less than 30k and the amount of stablecoins is less than $20 million.
Cardano sentiment is fading
Sentiment among traders has been on the decline recently. Cardano’s daily volume has remained below $500 million since July 5. In contrast, smaller meme coins like Pepe and Dogwifhat handle over $700 million per day. The same trend is observed in the futures market.
Santiment data shows that interest among traders has fallen to its lowest level in months. Most traders are primarily concerned about the coin’s poor performance and lack of developer activity.
🥳😱 Trader sentiment follows price action. With the emergence of XRP this week, bullish narratives have exploded. On the other end of the spectrum, Cardano is seeing its biggest bear market in over a year. Counter-trading the crowd consensus could prove profitable. photo.twitter.com/yin7ZeRYqC
— Santiment (@santimentfeed) July 17, 2024
Cardano also has one of the lowest staking yields on the market. StakingRewards data shows that it has a staking yield less than 3%.
Technically, Cardano remains below the 200-day moving average, which suggests that the ongoing recovery may be short-lived.
Cardano Price Chart
On a positive note, the crypto fear and greed index is about to flash green as hopes of a Federal Reserve rate cut rise. Therefore, ADA price is likely to rise if Bitcoin maintains its rally and surpasses the yearly high of $73,400.