Cardano, a once-promising cryptocurrency, has seen a significant decline in developer interest and activity in recent months. The number of monthly developer commits has dropped from 3,380 in May to less than 2,000 this month. This decrease in developer activity has led to a reduction in the amount of money locked in Cardano’s DeFi applications, from a high of 633 million ADA to 538 million ADA. Additionally, Cardano lacks major meme coins or decentralized exchanges (DEX), further impacting its market share and appeal to investors.
The daily trading volume of Cardano has remained below $500 million since July 5th, a significant decrease compared to other cryptocurrencies like Solana and BNB Chain. Furthermore, Cardano’s market share in the NFT market has also declined, with sales worth only $1.6 million in the last 30 days. The number of Cardano addresses has dropped to less than 30k, indicating a lack of new investors entering the market.
Sentiment among traders has been falling recently, with many expressing concerns about Cardano’s underperformance and lack of developer activity. The futures market data shows a decrease in interest among traders, with most traders worried about the future of Cardano. Additionally, Cardano has one of the lowest staking yields in the market, with a staking yield of less than 3%, making it less attractive to investors looking for staking rewards.
Technically, Cardano remains below the 200-day moving average, indicating that the ongoing recovery may be short-lived. Despite these challenges, there is some hope for Cardano as the crypto fear and greed index is about to flash green. Hopes of a Federal Reserve rate cut may boost ADA price if Bitcoin sustains its rally and crosses the year-to-date high of $73,400. However, Cardano will need to address its issues with developer activity and market share to regain its position in the cryptocurrency market.
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