Altcoins
Cardano price ‘sees biggest drop’ as altcoins rebound
Cardano has been rising since hitting a low of $0.3174 earlier this month
Cardan (ADA) has rebounded 40% from its low this month, but remains 45% below its high this year. Despite being one of the largest cryptocurrencies, Cardano has faced intense pressure in recent months, with its market cap falling from over $90 billion in 2021 to $15.9 billion on Wednesday.
External data indicates that developer and investor interest in Cardano has been declining recently. According to DeFi Llama, the number of monthly developer commitments has dropped from 3,380 in May to 3,300 in June, and currently stands at less than 2,000 this month.
Additionally, the amount of money locked in Cardano’s DeFi applications dropped from a record 633 million ADA in December 2023 to 538 million ADA on Wednesday. TVL of $247 million is much smaller compared to newer blockchains like Base, Blast, Sui, Mode, and Aptos.
Unlike Solana, BNB Chain, and Ethereum, Cardano does not have a major meme coin or decentralized exchange (DEX). Minswap, its largest DEX, processed less than $1 million in transactions in the past 24 hours, while Solana’s Raydium processed $851 million.
Cardano also has limited market share in the declining NFT market as it manipulated sales worth $1.6 million in the last 30 days. The number of Cardano addresses has fallen to less than 30,000 and the number of stablecoins is below $20 million.
Cardano sentiment fades
Trader sentiment has been on the decline lately. Cardano’s daily volume has remained below $500 million since July 5. In contrast, smaller coins like Pepe and Dogwifhat are handling over $700 million per day. The same trend is being observed in the futures market.
Data from Santiment shows that trader interest has fallen to its lowest level in months. Most traders are mostly concerned about the underperformance of the coin and the lack of developer activity.
🥳😱 Trader sentiment follows price action. With XRP surging this week, bullish narratives have emerged. On the other end of the spectrum, Cardano is seeing its biggest decline in over a year. Trading against the crowd consensus could prove profitable. pic.twitter.com/yin7ZeRYqC
— Santiment (@santimentfeed) July 17, 2024
Cardano also has one of the lowest staking yields on the market. Data from StakingRewards shows that it has a Staking Performance less than 3%.
Technically, Cardano remains below the 200-day moving average, suggesting that the ongoing rally may be short-lived.
Cardano Price Chart
On a positive note, the Crypto Fear and Greed Index is set to turn green as hopes of a Federal Reserve rate cut increase. Therefore, ADA price will likely rise if Bitcoin maintains its rally and breaks the year-to-date high of $73,400.