- Cardano experienced a rise in daily user activity.
- The ecosystem saw a couple of projects going down.
- Charles Hoskinson was not happy with the failed Cardano project.
What Caused This Spike?
The Cardano ecosystem is seeing an unusual spike in on-chain activity on the ecosystem for a month now. Daily user activity rose by around 90% recently. People believe the surge is caused by the selling pressure by investors on its native crypto, ADA. The Recent disappointing performances can lower the investor faith considerably.
Increasing developer activity might also push the on-chain activity on the ecosystem. Recently, Cardano saw a couple of projects going down from the network. Ardana, a stablecoin project, was halted due to funding and timeline issues, said the team on Twitter. They added that the code will remain open source for devs to work in future.
Charles Hoskinson, founder of Cardano, posted a YouTube video to express his disappointment regarding the failed Cardano project. He put the discontinued operations in the center, alleging that the project team did not live up to their word. He added that this was not any funding or platform issue, but a leadership issue.
ADA Price Analysis
ADA has created a bear trend throughout the year. Currently, the asset was trading at a market price of $0.31, a 1.7% increase in the past 24 hours. The digital asset managed to stay above $1 during the first quarter this year. It saw some massive sell-off during January 2022 which led the price to fall below a buck.
But it soon found the way up and held the position above $1 for a major period during February 2022. ADA price maintained $0.7 support and $1 resistance the following month and witnessed an increasing buying interest by the month’s end, helping asset’s value to breakout during April 2022.
This remains the final struggle for the asset for the year as it tumbled rapidly since April. Investors saw some potential and started accumulating the asset during mid-June but it did not help ADA price to reach the year’s high. The value has plunged by over 80% in contrast to the January levels for Cardano.
Recently, Ouroboros, Cardano’s PoS-based consensus algorithm, announced their new variant, Ouroboros Leios, which attracted a lot of users’ attention. The update can reportedly generate blocks every 20 seconds on the blockchain. Some community members think that this is the most promising Layer 1 upgrade to come. But let us not get our hopes high as it is still a CIP.
Crypto market was reviving steadily with Bitcoin up by 4.86% in a week and Ethereum by 10.85%. The total market cap increased by 1.96% in the last 24 hours to reach $835 Billion at the publication time.
Source: https://www.thecoinrepublic.com/2022/11/29/can-the-ouroboros-variant-pull-ada-price-back-to-this-years-peak/