Cardano’s (ADA) On-chain Volume Declines: Are Bulls Wrong?
Cardano (ADA) price has plummeted with the wider cryptocurrency market posting daily losses. The price of ADA stands at $0.4433, a 4% decline in the last 24 hours, signaling bearish pressure. This week’s drop in the asset follows a similar decrease in top assets as sentiments continue to plunge.
While market liquidations have been sparked by macroeconomic factors and a tighter SEC regulatory stance, industry factors have also plunged Cardano’s momentum. Weekly and monthly flows for the asset are at 5% and 28% respectively.
On-chain Factors Hinder Cardano
The plunging price of ADA is due to reduced transaction volume as well as decentralized finance (DeFi) activities. Cardano’s daily trading volume is down 0.50% to $275 million. Alongside trading volumes, on-chain activities have also slowed. Data from DeFiLlama show totals of $274 million in total value locked (TVL).
This shows a 4.45% decline from previous levels from yesterday. Cardano volumes on DeFi protocols have a 22-% weekly change with most platforms recording losses. Minswap and Indigo are down 4% in volumes with the platform’s TVL failing to $68 million and $61.2 million.
Last month Cardano also reported reduced on-chain factors inspired by total crypto liquidations. Other assets like Bitcoin (BTC) and Ethereum (ETH) have also seen weakened volumes in the last 24 hours. Both assets are down 1.6% and 2% respectively with monthly losses extending to double digits. These exits have also affected the memecoin ecosystem in the same period.
Are Bulls Wrong?
This year, bulls projected record highs for Cardano on the back of price upticks recorded in Q1 coupled with partnerships and positive on-chain sentiments. This year, Charles Hoskinson, the co-founder of Cardano has hinted at potential partnerships including a deal with Bitcoin Cash.
“Would you like to see Bitcoin Cash become a Cardano Partnerchain upgraded with Useful Proof of Work Leios, NiPoPoWs, and Ergo tech, thus being the fastest and most useful proof of work chain ever built?”
Despite outflows, bulls still maintain strong momentum based on expected interest rate cuts and the forthcoming US elections.
Also Read: Top Celebrities Who Don’t Support Crypto Market
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure
- SEC to Decide on Six Spot XRP ETF Applications in October
- Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
