Journalist
Posted:
- ADA retested the key support level after giving up 2023 gains but struggled to secure bullish momentum.
- A look at what Cardano has been up to reveals a focus on development in key areas.
There was once a time when Cardano was one of the most popular blockchain networks, along with its own crypto, ADA. However, it has since been overshadowed by other networks that have become more popular.
But is the future of Cardano and ADA still as promising as once visualized?
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Cardano’s declining popularity suggested it has fallen out of favor with the market. This was probably because it was once described as an Ethereum [ETH] killer, but so far that goal has not come true. Cardano’s social dominance metric highlighted this as it has declined and is now at a six-month low.
Source: CryptoQuant
The low social dominance was consistent with the situation in ADA’s price action. The cryptocurrency has so far given up all the gains it made in early 2023. However, it has also found support at the same level as the lows in December 2022 and August 2023. ADA exchanged hands at $0.25 at the time of writing.
Source: TradingView
Moreover, ADA has managed to show some signs of accumulation at the current lows. However, that was not enough to support a strong bullish comeback. Despite these observations, Cardano continues to build and this was evident from the sharp increase in development activity over the past six months.
Source: Santiment
Can Cardano turn things around?
What is Cardano working towards? A recent analysis of the ADA whale highlighted some of the notable developments that have taken place in the Cardano ecosystem. These include Layer 1 and Layer 2 upgrades, Dapps, governance and NFT-related developments.
One of these developments was the launch of OptionFlow’s testnet. The latter is a decentralized options protocol launched on the Cardano blockchain.
2/We saw the launch of the @OptionFlowTeam testnet. Besides bonds, derivatives are another area where Cardano DeFi will shine
I haven’t seen this flexibility anywhere else: issue put or call options for a token x expiration x strike combination, then directly to the secondary market https://t.co/n1z7N2NUPe pic.twitter.com/B5T7npgotd
— ADA whale (@cardano_whale) September 28, 2023
ADA whale also revealed that another DeFi platform called Genius Yield recently launched the early stages of its testnet. The DeFi protocol features automated yield optimization, as well as a concentrated liquidity DEX.
A Cardano oracle feed called Orcfax is also in the works. Meanwhile, the NFT market appears to have fallen from favor. However, Cardano’s founders and developers are still confident that NFTs will make a strong comeback in the future.
Read Cardanos [ADA] Price forecast 2023-24
Based on the above findings, we can see that Cardano is developing on several fronts. This is part of the network’s efforts to tap into growth opportunities from multiple segments in the DeFi and blockchain space. In other words, Cardano’s best days could be ahead and the same could be true for ADA.