Black_background_logo_BitcoinWorld-removebg-preview
Blockchain News

Market Bottom? Cardano ($ADA) Trading Volume, Active Addresses and Social Dominance Reach 2023 Highs as Price Falls

Cardano (ADA), a prominent smart contract platform, experienced a decline in its price, reaching a low of $0.23, following lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against major exchanges, Binance and Coinbase. Despite this setback, recent data suggests that Cardano’s adoption and market indicators are showing signs of growth, offering valuable insights into the potential bottom for the cryptocurrency.

Price Recovery and Adoption Metrics:

Cardano’s price has recovered to $0.275 at the time of writing. However, on-chain analytics firm Santiment reveals that several key metrics indicate the growing adoption of Cardano and may indicate the price bottom. Notably, Cardano’s trading volume has reached new heights, highlighting increased activity on the network and active engagement from traders. Conversely, low trading volume could suggest a lack of investor interest or stagnation in the market.

Active Addresses and Trading Volume:

Cardano’s daily active addresses have also witnessed a year-to-date high. This metric measures the number of unique addresses actively involved in transaction activity on the Cardano blockchain. Considering the trading volume and active addresses, one can obtain a more accurate representation of market activity. While large network transactions alone may create an impression of high market activity, the daily active addresses metric helps reveal the number of users involved. A significant increase in both metrics during the price drop suggests substantial interest in purchasing Cardano at the lower price point, potentially indicating a market bottom.

Social Dominance:

Furthermore, Cardano’s social dominance has surged. This metric quantifies the level of social media discussions, specifically mentioning the smart contract platform. Increased social dominance suggests a growing interest and awareness of Cardano among cryptocurrency enthusiasts and investors.

Interpreting the Metrics:

These metrics provide a perspective on the market dynamics during Cardano’s price decline. They indicate a rise in both the number of users and the total transaction amounts during the price drop, suggesting significant interest in purchasing the asset at the lower price point. However, it’s important to note that these data points are not definitive and should be considered alongside other market factors.

Impact of SEC Lawsuits:

In light of the SEC’s actions against crypto exchanges like Binance and Coinbase, popular trading platform Robinhood is reportedly reevaluating its support for various cryptocurrencies, including ADA and SOL. The regulatory landscape and increased scrutiny from authorities may impact the overall sentiment and adoption of cryptocurrencies.

While Cardano’s price experienced a decline due to the SEC lawsuits, several adoption metrics indicate growing interest and activity on the network. The increase in trading volume, active addresses, and social dominance during the price drop suggests significant interest from investors. However, it’s crucial to consider these metrics alongside other factors influencing the market. As the regulatory landscape evolves, the future trajectory of Cardano and other cryptocurrencies remains subject to various quantifiable and non-quantifiable factors.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.