Bitcoin recently went down and couldn’t hold up above $ 32,000. Similarly, ETH is down almost 11% in just one week. With the market leaders steadily declining, Cardano’s sustained sideways movement (ADA) surprised some analysts even in these turbulent times.
ADA has managed to spark investor optimism with constant upgrades and news of institutional interest. In fact, following the announcement of its addition to Grayscale’s portfolio, the price rose 5%. In addition, the successful implementation of the Alonzo White Fork also lays the foundation for other upcoming developments in this area. But is that enough to keep the fifth largest cryptocurrency price moving?
In short, having a strong networked ecosystem gives investors confidence and lately Cardano has done reasonably well in this regard. Asset price has held up well despite the nearly 50% decline in BTC, and part of that can be attributed to the continued increase in active holding pools on Cardano.
According to the analyst Benjamin Cowen, the reason ADA “holds up so well” is because increased stakes have reduced selling pressure so much that people won’t stop even if the price falls. Following Cardano’s staking growth, he said:
“I’ve always said that ADA is my main hedge against Ethereum, not that ADA will overcome it, but I foresee some high gas tariff issues in 2017 and I know people will look for other solutions.”
Interestingly, the number of active stake pools is in a steady upward trend despite the slight decrease in ADA price over the past 3 months. One of the other reasons ADA is holding could be because 70-80% of total circulating supply is being staked out. Cowen also points out the same thing:
“People don’t take off their ADA and instead hold on or bet more, which reduces the pressure to sell.”
Number of active stake pools | Source: Cardano waves
In terms of development, in addition to the ongoing ecosystem-oriented updates, the Cardano star nodes have also risen on Github and reached their peak in July with around 1731 stars.
Star node Cardano on Github | Source: Cardano waves
Therefore, ADA’s development activities and the number of contributors to the development activities are not materially affected by price. In addition, it is another indication of the strength and reliability of the network in space. Even with ADA’s price dropping nearly 13% in the last 7 days, hovering around $ 1.20, the numbers of ADA development activity and development contributors remain positive.
ADA price (green), development activity (yellow), number of development workers (purple) | Source: Sanbase
Finally, the analyst also draws an interesting comparison between the validation in the Cardano network compared to other blockchains and highlights the simpler authentication and authorization process on Cardano. Additionally, Cardano encourages people to run their own validators, and validator staking is a free marketing method.
In contrast, many other networks that limit the number of validators tend to centralize and lose this intrinsic free marketing ability.
It’s no surprise that the eToro trading platform recently Disclosure ADA overtakes Bitcoin and becomes the most widely held cryptocurrency in the second quarter.
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page trang
Alexey Pertsev, a developer of the coin-mixing protocol Tornado Cash, has sent shockwaves through the…
Justin Ðrake, a prominent figure within the Ethereum Foundation, revealed that three staff members have…
The debate over cryptocurrency regulation in India has reached a critical juncture as the Securities…
Many investors are eyeing smaller cryptocurrencies for their potentially high returns. This article explores a…
RCO Finance (RCOF) actively uses AI to promote the wider acceptance of cryptocurrencies within mainstream…
London authorities detain pump.fun attacker, possibly identified as Jarett Reginald Dunn.
This website uses cookies.