Cardano [ADA] investors finally enjoyed a day of relief after enduring a protracted time in the red. At the time of writing, the native token of the Proof-of-Stake (PoS) blockchain has increased by 9.14% in the previous 24 hours. Only Ripple [XRP] exceeded it in terms of market capitalization among the top ten cryptocurrencies.
Although ADA beat the bears, the escape was not without support from activity on its network. Input Output, the project’s development arm, tweeted about the Cardano Mainnet’s Dynamic peer-to-peer (P2P) rollout.
The Charles Hoskinson-led initiative, according to its 16 March explanation of the P2P function, was a further boost to the network’s performance and decentralization. The blog article also stated that the Dynamic P2P would reduce communication delays and strengthen the network against outages.
Meanwhile, the Cardano community has begun testing the feature, which necessitates a node update to 1.35.6. Because of the presence of the node, Cardano users can conduct P2P transactions without the need for a development network protocol.
The project’s development activity, on the other hand, remained constant at 81.17. The statistic follows a project’s public GitHub repositories while gauging developer commitment.
Nonetheless, Cardano’s relatively unchanging position did not imply that it was in worse shape, as ProofofGitHub ranked it just second to Polkadot [DOT].
Additionally, ADA whales appear to have influenced the token’s price movement. This was due to Santiment data showing an increase in transactions in the $100,000 level since March 19. In fact, this statistic reached a monthly high of 433 on March 21, although falling to 219 at press time.
The whale activity indicates a surge in interest in the token. This, in turn, causes buying pressure, which is finally reflected in the token value.
At the time of publication, ADA was trading at $0.372, a level it has been unable to attain since March 14. Following the price increase, the ADA 30-day Market Value to Realized Value (MVRV) ratio followed suit.
The metric serves as a major signal for traders to identify whether an asset is undervalued or overvalued. Furthermore, it displays the gain rate reported over a given time period.
As a result, the MVRV ratio rising to 3.605% suggested that a significant percentage of investors who had accumulated in the previous 30 days were now profiting.