October 31, 2023
Altcoin Cardano has been experiencing a positive trend in the crypto market, rallying alongside other cryptocurrencies. In the last 24 hours, the ADA price has increased by 2.47%, reaching $0.300, with a market cap of $10.5 billion.
On-chain data reveals that dormant Cardano coins have started moving, and ADA whales are accumulating once again. According to Santiment data, Cardano has achieved a significant milestone in dormant coin activity. The network recorded the highest movement of older wallets holding $ADA since April 2022, indicating a resurgence of coins re-entering circulation. Moreover, wallets containing 100,000 to 10 million $ADA are in the accumulation phase.
The recent ADA price rally is supported by strong Q3 numbers reported by the Cardano ecosystem. Cardano experienced a remarkable surge in its Decentralized Finance (DeFi) Total Value Locked (TVL) during Q3. This metric showed a substantial 198% quarter-over-quarter (QoQ) increase, propelling Cardano from its previous ranking of 34 to an impressive 15. This achievement marks one of the most substantial growth periods for Cardano this year.
The growth of Cardano is further highlighted by key metrics. Average Daily Active Addresses reached 41,137, and Average Daily Transactions totaled 60,356 for the quarter. Additionally, other important metrics, such as Average Daily DApp Transactions and Average Daily NFT Trading volume, displayed impressive figures of 49,388 and $0.6 million, respectively.
The protocol's stablecoin value also exhibited significant growth, with a remarkable 16% increase in the Quarter-on-Quarter (QoQ) comparison and an impressive 461% surge in the Year-to-Date (YTD) period. The report emphasized that the rise of stablecoins was initially driven by iUSD, but later, protocols like Wanchain introduced bridged versions of USDT and USDC, further contributing to this rally.
With the recent price surge, the ADA price has surpassed the 200-day EMA, around $0.298. This could potentially increase the buying pressure for the cryptocurrency in the future.
However, it is important to note that with a daily RSI reading of 78%, there is a clear sign of robust bullish momentum. Nevertheless, this could also indicate that the asset is approaching overbought conditions.
In summary, Cardano's recent performance has been impressive, with a positive price trend and significant growth in various metrics. The accumulation of ADA by whales and the surge in Q3 numbers demonstrate the increasing popularity and strength of the Cardano ecosystem. Investors should consider the potential buying pressure and monitor the RSI reading as the asset approaches overbought conditions.
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