Can DEX Boom Save Cardano? ADA Seek Recovery As Trading Rises

Cardano (ADA), a smart contract platform, is struggling. DEX volumes have increased in the DeFi sector, while Cardano's Total Value Locked (TVL) has dropped, raising worries about its ecosystem.

DeFi And NFT Market Drop

Artemis, a renowned blockchain analytics source, reports that Cardano's TVL has dropped from $430 million to $230 million despite the crypto industry's DEX volume spike. This shows little interest in Cardano-based dApps, which might hurt its long-term growth.

The Cardano NFT space has also suffered. Over the last month, floor price and trade volume for popular NFT collections have plummeted. This declining interest in Cardano NFTs might hurt market confidence and ADA prices.

The technical prognosis for ADA is negative. Price has been falling for weeks, making lower lows and lower highs. Additionally, technical indicators like the RSI and CMF are showing falling positive momentum and money flow into ADA.

Cardano's future is threatened by forces beyond pricing and DeFi issues. ADA velocity, which indicates token exchange frequency, has dropped, indicating decreasing trading activity. The MVRV ratio, which measures token holders' profitability, has also decreased, indicating that most ADA addresses are underwater.

The Cardano Price Forecast

Cardano is a major blockchain participant, but recent events show its problems. The combination of falling price, diminishing DeFi and NFT activity, and bad on-chain indicators predicts additional decline.

The ADA market valuation is $16 billion. TradingView.com chart

By June 30, 2024, Cardano is likely to grow roughly 5% to $0.47. To predict asset movement, technical indications and market sentiment must be considered.

Crypto bearishness may be impacted by market movements, news, or technical analysis. The Fear & Greed Index is 73, suggesting market Greed. This means investors may be more risk-taking or speculative, which might affect Cardano's price.

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