Cardano, one of the top cryptocurrencies in terms of market cap, has seen a decrease in wallet activity amidst the global market recovery. This recent development has sparked speculation within the crypto community, as members are curious about the cause and its impact on the token’s price.
The global crypto market appears to be starting the new week on an upward trend. According to data from CoinMarketCap, the overall crypto market capitalization has grown by a noticeable 1.33% in the past day, reaching 2.38 trillion. As a result, most tokens in the market are trading in the green zone, as indicated by the crypto heat map. Additionally, the sentiment surrounding the crypto market seems positive, as shown by the crypto fear and greed index. However, Cardano (ADA) seems to be an exception.
Santiment, a cryptocurrency tracking intelligence tool, recently released fresh data on active wallet activities for various cryptocurrencies, including Bitcoin (BTC), Dogecoin (DOGE), and Cardano (ADA). According to the data, the total number of active Cardano (ADA) wallets has decreased by 0.13% in the last three months. This highlights the fact that ADA is one of the few networks experiencing a decline in wallet activities. On the other hand, Bitcoin, the largest cryptocurrency by market cap, has witnessed a significant increase in active wallets over the past 90 days. The provided data shows that the number of non-empty BTC wallets has grown by 2.6% during this time. The data also mentions Dogecoin (DOGE), the largest memecoin by market cap, revealing a staggering 13.8% surge in non-empty Dogecoin wallets in the last three months.
Source: X/ Santiment
Furthermore, Cardano has seen a significant dip in its price over the last month, causing concern among investors. According to data from CoinMarketCap, the price of Cardano (ADA) has plummeted by over 28% in the recorded time. Looking at the weekly chart, ADA has also experienced a 5.40% decline in value within the past seven days. At the time of writing, the coin is being traded at $0.46, representing a 1.59% increase in the last 24 hours.
The declining numbers could indicate an opportunity for undervaluation or serve as a cautionary sign of declining interest in Cardano. However, it is crucial to consider the bigger picture. The entire cryptocurrency market is currently shrouded in uncertainty, and fluctuations in user behavior are not uncommon. As projects adapt to changing market conditions, periods of decline and consolidation often precede periods of renewed development and a bull market.
With the recent upgrade to the Cardano network, which has bolstered its capacity, all eyes are now on the price reaction of the token. Investors are hopeful that it will bounce back and reach new highs in the coming months.
Tags:
Bitcoin (BTC)
Cardano (ADA)
Dogecoin
