Cardano’s development activity has been on the rise lately. Per the latest data, the network managed to surpass all of its competitors in June and rose to the top. Notably, this comes at a time when the network’s much anticipated Vasil hardfork is round the corner.
The afore-highlighted feat is definitely a huge positive for Cardano. However, the state of its on-chain metrics seems to be going downhill at the moment. Per data from analytics platform Santiment, Cardano is seeing “the least” amount of unique addresses interacting on its network in a year.
Users interact with one another via addresses on the blockchain. So, daily active addresses essentially gauge how active a given blockchain is on a daily basis. Now, when compared to last November’s highs of 300k, this metric’s reading has currently been oscillating around 53k.
A rise in this metric during positive-sentiment dominant phases is usually a good sign. On the other hand, the converse holds true when the number drops and the sentiment is negative.
Now, as can be seen from above, the weighted sentiment associated with Cardano, on social platforms, has fallen to a 4-month low. This metric had been oscillating in the negative territory since the end of April. However, the intensity of bearishness has inclined of late, with the indicator posing a reading of -0.57.
ADA Price Implication
Positive metrics usually rub off positively on the underlying price of assets. With the current landscape remaining humdrum, ADA’s price has also been moving horizontally. Since mid-June, Cardano has been consolidating in a narrow band between $0.43 to $0.53.
Trade volumes remain to be low, re-emphasizing the lack of community interest. Alongside, the Relative Strength Index has also been revolving in the neutral zone, bringing to light deficit momentum in the market.
So, unless the state of the metrics improves and buying pressure is induced, ADA would continue consolidating.
