Cardano’s (ADA) On-chain Volume Declines: Are Bulls Wrong?
Cardano (ADA) price has plummeted with the wider cryptocurrency market posting daily losses. The price of ADA stands at $0.4433, a 4% decline in the last 24 hours, signaling bearish pressure. This week’s drop in the asset follows a similar decrease in top assets as sentiments continue to plunge. While market liquidations have been sparked by macroeconomic factors and a tighter SEC regulatory stance, industry factors have also plunged Cardano’s momentum. Weekly and monthly flows for the asset are at 5% and 28% respectively. The plunging price of ADA is due to reduced transaction volume as well as decentralized finance (DeFi) activities. Cardano’s daily trading volume is down 0.50% to $275 million. Alongside trading volumes, on-chain activities have also slowed. Data from DeFiLlama show totals of $274 million in total value locked (TVL). This shows a 4.45% decline from previous levels from yesterday. Cardano volumes on DeFi protocols have a 22-% weekly change with most platforms recording losses. Minswap and Indigo are down 4% in volumes with the platform’s TVL failing to $68 million and $61.2 million.
This year, bulls projected record highs for Cardano on the back of price upticks recorded in Q1 coupled with partnerships and positive on-chain sentiments. This year, Charles Hoskinson, the co-founder of Cardano has hinted at potential partnerships including a deal with Bitcoin Cash.