In recent days, the number of daily active addresses on the Cardano blockchain has fallen to its lowest in a year.
Cardano blockchain starts losing active addresses
This is revealed by Santiment, which also points out that Cardano’s sentiment on social media has fallen to 4-month lows, and that if ADA’s price rises again it is expected that FOMO will quickly return as well.
📉 On this #bearmarket slide, #Cardano is seeing the least amount of unique addresses interacting on its network in a year. On top of this, sentiment on social platforms has fallen to a 4-month low. When $ADA spikes again, #FOMO should return quickly. https://t.co/u3oD2XkFGI pic.twitter.com/wz3XWR9gtC
— Santiment (@santimentfeed) June 27, 2022
Right now the price of ADA is below $0.5, after rising almost as high as $1.6 in January. Even though it is only 2% lower than a month ago, it is still 64% lower than a year ago, and especially 85% lower than the September 2021 highs.
It is worth noting that 2021 began with a price of $0.18, thus much lower than the current one. However, the previous cycle’s peak in January 2018 was $1, so the current price is less than half that of the previous cycle’s peak.
It is now more than two and a half months since it has only been going down, so it would not be at all impossible to imagine a rebound sooner or later.
Already in the past, when it had started to rise it had done so strongly, and very quickly, like during the first five months of last year when it did an incredible +1100%. Since then the price has shrunk by three-quarters, but still staying profitable by more than 150% since late 2020.
In addition, some good news has started to spread, which could also move the price, although this is by no means a given.
Cardano blockchain updates from IOG
A few days ago, IOG announced a milestone in the development of the project, namely the new release of node 1.35.0.
Today, we’re pleased to report that the IOG team has successfully tagged and released #Cardano node 1.35.0 which we can confirm will be the final candidate for the mainnet Vasil release.👌
— Input Output (@InputOutputHK) June 25, 2022
This release is the final candidate for the new Vasil upgrade of the Cardano mainnet.
This news was able to bring the price back up, from $0.46 to $0.52, but in the following days the price has since returned below $0.5.
Vasil is a highly anticipated mainnet upgrade because it will strengthen Cardano’s capacity and performance. Indeed, since the Vasil upgrade is part of the last phase of the project’s development, Cardano is set to operate at full capacity soon.
When it is launched, if it produces a strong demand for ADA to use the new tools that will be developed on this blockchain, it could cause an increase in the market value of this cryptocurrency. So far, there are still very few tools active and used en masse on Cardano. Suffice it to say that, according to DeFiLlama‘s data, it ranks 27th overall among blockchains with the highest TVL (Total Value Locked) on DeFi platforms, behind Celo, Fusion, Moonbeam and Heco.
Hence, in theory, the prerequisites for a further boom are there, although the future actually remains uncertain because it all depends on how much this network will really be used in the future.