- ADA rose in price after the approval of the Bitcoin ETF.
- The Cardano ecosystem experienced growth, but there were some challenges.
Cardano [ADA] has recently emerged as a positive player in the cryptocurrency market, benefiting from the momentum generated by the adoption of Bitcoin’s spot ETF.
In the last 24 hours, ADA witnessed an impressive 13.31% increase, reaching a trading value of $0.5853. This increase was indicative of the positive sentiment surrounding ADA and its growth potential in the market.
ADA sees green
Source: Santiment
The increase in the price of ADA is accompanied by a notable increase in the total number of addresses with ADA. This uptick indicates growing interest and participation among investors and users, which can be seen as a positive signal for the cryptocurrency.
However, it is essential to note that despite the price increase and increased number of addresses, the speed of ADA trading activity has decreased. Investors should carefully consider this aspect when assessing the sustainability of ADA’s current momentum.
In addition to price movements, the Cardano ecosystem saw impressive developments, especially with the Mithril upgrade.
Since the launch of the mainnet in June, the network has operated consistently without interruption, thanks to the growing involvement of dedicated Stake Pool Operators.
This positive growth within the Cardano ecosystem, powered by Mithril, could increase the overall appeal and functionality of the network.
Since the launch of the mainnet in June, the #Mithril protocol has continued to function uninterrupted, thanks to the increasing participation of dedicated Stake Pool Operators (#SPOs).
Kudos to Mithril Pioneer SPOs for their continued support.
For more details about the Mithril… pic.twitter.com/LSjBkBKQID
— Input Output (@InputOutputHK) January 10, 2024
There are some problems ahead
While ADA’s recent performance has been promising, it is critical to examine certain indicators that may pose challenges.
While Cardano’s revenue saw robust growth, up 92.7% last month, there has been a steady decline in the number of core developers on the network.
This decline could raise concerns about the network’s future development and innovation potential, as a robust developer community is critical to the sustainable growth of any blockchain ecosystem.
Source: token terminal
Moreover, the Cardano NFT ecosystem also witnessed a decline in interest, which was reflected in the declining volume in recent weeks.
NFTs are an important part of the crypto landscape, and declining interest in Cardano’s NFT sector could negatively impact the network’s vibrancy and community engagement.
Source: opencnft
