ADA is falling in the downtrend, although Cardano reaches 20 million transactions – When will dApp come?
Cardano has just reached a major milestone in the completion of its 20 millionth transaction. What is even more impressive is that this process has taken place without any downtime in its 4-year history.
Despite this accomplishment, confidence in ADA has declined in recent weeks as the price struggles to gain ground.
Since implementing smart contracts in the Alonzo upgrade on September 12th, ADA has been in a downtrend with little sign of resistance from the bulls.
Last weekend, the price hit a 16-week low at $ 1.42 and rebounded strongly. Since then, ADA has traded in a narrow range of $ 1.54 to $ 1.63.
4-Hour ADA Price Chart | Source: Tradingview
Some attribute the bad price action to the lack of dApps (decentralized applications), particularly the difficulty of using the Haskell programming language. But is that true?
Cardano criticized for inadequacies in the use of Haskell
One post Recently, u / mask45 on Reddit pointed out the dearth of dApps on Cardano since Alonzo launched 11 weeks ago.
The most recommended comment is that Haskell is the main reason for this. Unlike Ethereum’s Solidity, users concluded that it was difficult to code in Haskell and that it was unpopular with developers.
But then Cardano supporters dismissed the above claim as an FUD. For example a post on Reddit points out Runtime Verification, and IELE can help developers build on Cardano without having to use Haskell.
IOHK developers describe IELE as a virtual machine for executing smart contracts, but with a strict standard for formal verification and security that is well known on Cardano (and Haskell).
“IELE (named after a fairy-like creature in Romanian mythology) is a virtual machine that executes intelligent contracts and also provides human-readable language for blockchain developers.”
In addition, TIOBE Software recently launched reviews Haskell is the 40th most popular programming language, while Solidity ranks 93rd.
Hoskinson responds to criticism about the lack of dApps
Last week, Cardano founder Charles Hoskinson updated the dApp situation, saying that IOHK is currently working to resolve the issues related to the Plutus Application Backend (PAB).
“As many of you know, PAB is already on the test network (test network) and people are currently using PAB to create their dApps.”
This process involves solving technical problems with the dApp developer in order to refine the features and functions.
He added that many Cardano-dApps are being developed and he would not be surprised if they were released “soon”.
Since the fundamentals like network reliability are still working fine, the dApp situation will require more patience.
What about the ADA prices?
ADA price is down 2.4% in the past 24 hours and nearly 8% in the week after rising slightly yesterday.
General market sentiment doesn’t have to turn up at the time of going to press. The ADA funding rate curves on most exchanges are below. When the funding rate drops below zero and turns negative, it means that the short side is demanding more leverage than the long side.
In general, traders only execute high leverage trades when they are certain of the outcome of the upcoming trading sessions. So if more traders enter the bearish zone, these curves will most likely enter the negative zone. Accordingly, ADA’s meager profits will be wiped out.
Financing rate history of ADA | The source: CoinGlass
Additionally, ADA’s Open Interest (OI) has neither increased nor decreased in the past few days. Overall, it’s around the $ 600 million mark. In essence, this means that the ADA market is not lacking in speculative interest.
ADA Futures Open Interest | The source: CoinGlass
The long / short ratio has continued to be lower in recent trading sessions, suggesting that interest is trending down rather than up. In other words, the number of recently placed short orders is higher than that of long orders.
In fact, more long contracts were liquidated than short contracts.
Total liquidation | The source: CoinGlass
All of the above trends taken together show the general bearish sentiment among ADA traders. In fact, at this stage ADA tends to go down rather than go up. Hence, long traders need to be more cautious than ever.
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According to AZCoin News