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Cardano’s native token yesterday nosedived to a multi-month low below $0.66 as the correction deepened. Market data reveals that since the start of April, ADA has shed nearly half of its value and is, at present, extending this slump. While the last couple of hours have been less harsh on the general market, ADA/USD is still swinging between the $0.68 to $0.69 range –78% off its all-time high – across many exchanges.
Following the first drop below $1.00 this year in the last week of February, ADA/USD flashed signals of an uptrend towards $1.50. The token gained over 40%, rising from $0.79 on March 13 to $1.21 on April 4 but found itself descending again. A brief rally between May 3 and May 5 faded as bulls lost their grip leaving the ADA market red.
Though the 30-day trading chart shows an almost consistent drop in the value of the token, there is still a case for jumping into the ADA market. Current prices are appealing and could be rewarding to new holders, given that a bounce back from the current support is not entirely out of the question.
It is worth pointing out that the crash in ADA prices is a reflection of the overall market sentiment as opposed to an issue only affecting the Cardano network. Should Bitcoin climb from the current lows, it will potentially inspire a recovery among other altcoins, including Cardano (ADA). The recent as well as upcoming developments in the Cardano ecosystem are also promising and could provide further upside momentum to the token’s price.
An uptick in large-holder accounts
Supply distribution data from analytics platform Santiment paints an interesting picture. Over the last three days, accounts with more than 1 million ADA have swelled. Contrastingly, those with 100,000 to 1 million ADA coins have seen declining figures. Two plausible explanations are accumulation by the whale class or growing inflows in exchange wallets.
Cardano smart contracts rose by over 300 in April
Outside the market, Cardano has continued advancing in anticipation of its June 29 Vasil hard fork combinator (HFC) event. The latter is expected to enhance the experience offered by smart contracts on the network. Towards that milestone, the number of smart contracts on the network has been growing in recent days
In the 30 days between April 1 and April 30, the number of smart contracts on Plutus increased from 2,272 to 2,610, Cardano Blockchain Insights data shows. This translates to an average increase of around 11 new Plutus scripts each day in that period. The biggest change came in the first half of the month – 270 additional scripts between April 1 and April 15 compared to only 68 across the rest of the month.
The steady growth has continued in May with rapid increase being observed in the first week. Plutus scripts have increased from 2,625 on May 4 to 2,691 as of Monday.
Throughout April, several other Cardano metrics were positive. The number of projects building on the network increased by about 400, with Input Output Global (IOG) reporting that there were more than 900 projects as of April 18. There were 102,000 wallets added to the network in that month, after reaching 3 million token wallets in February.
The count of projects building on the network is looking up, with a total count of 933 as of Friday last week. NFT projects stood at 5,511, and there were 4.6 million native tokens on the Cardano blockchain.
The most recent development update provided by the Cardano team detailed that node – ledger, consensus, node API & CLI – and Plutus development teams have been working on the road to Vasil. Pipelining, expected to ship with the upgrade, underwent benchmark testing.
To learn more about Cardano visit our Investing in Cardano guide.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.