- Cardano’s TVL gained upward momentum since the start of 2023.
- The blockchain’s development activity was high, but ADA’s price remained slow-moving.
The crypto market did not witness much volatility last week as the price action of most coins was muted. However, a border look at the market condition gave a better understanding of how cryptos such as Cardano [ADA] have been performing in 2023. While the blockchain excelled in a few aspects, its performance in others was not up to par.
Read Cardano’s [ADA] Price Prediction 2023-24
A look at Cardano in 2023
Cardano Daily’s tweet posted on 14 August, pointed out that the market remained in place after fluctuating for a week, though there appeared to be some slight movement. But upon taking a look at the market since the beginning of 2023, things looked much different.
Bitcoin [BTC] showed a 77% increase in its price whereas ADA only showed 20% growth in its value year to date.
After a week of fluctuation, the market stood still where it was. There seems like slight movement in the market. $BTC still showed 77% performance whereas $ADA only showed 20% growth YTD.#apr #performance pic.twitter.com/MG7LGs0Qa9
— Cardano Daily (@cardano_daily) August 14, 2023
Though ADA did not manage to push its value to the extent that BTC did, the blockchain excelled in a few areas. For instance, the blockchain’s performance in the DeFi space has been laudable. Cardano’s TVL has been on the rise since the beginning of this year.
TVL is the total value of all assets deposited in a DeFi protocol that are generating economic activity. Therefore, a hike in the metric suggested an increase in the network’s value. Additionally, its DEX volume also remained relatively stable throughout the past few months.
Not only that, but the blockchain’s development activity also remained pretty high. This also reflected on the ground as Cardano a few weeks ago pushed its Mithril mainnet upgrade.
To clear the air, the Mithril upgrade reduced the time required for nodes to sync with the blockchain. The latest update was aimed at improving the blockchain’s scalability under its BASHO Era.
Cardano must improve in these specifics
While the blockchain registered growth in the aforementioned areas, Cardano’s network activity has declined over the last few weeks.
This was evident from the drop in its daily active addresses since the beginning of July. The decline in active addresses also took a toll on the blockchain’s daily transactions, which allowed the same trend.
ADA’s performance on the social front was also not at par. LunarCrush’s data revealed that after spiking in June, ADA’s social engagement started to drop. The same remained true for the token’s social mentions.
Additionally, investors’ confidence in the token also declined as bullish sentiment plummeted by over 77%.
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On top of that Cardano investors might have to wait longer to enjoy profits. This seemed likely, as ADA’s open interest was relatively high.
High open interest generally indicates that the on-going price trend might continue. According to CoinMarketCap, ADA was down by 1.17% in the last seven days. At press time, it was trading at $0.2892 with a market capitalization of over $10 billion.