A video posted by Altcoin Daily on YouTube addressed some of the issues that Cardano has been facing. According to the crypto analyst who made the presentation, Cardano and its token ADA have been having a hard time, with ADA dropping out of the top 10 cryptocurrencies by market cap to the 12th position.
Despite this setback, the project, which has been around since 2017, continues to show signs of life and development.
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Some Metrics That Show the Strength of Cardano
According to the analyst, some information suggests Cardano may not be dead. Let’s consider some of them below.
Positive ADA Holding Behavior
One significant metric that shows Cardano’s resilience is the strong hodling behavior of its community. 72% of ADA holders have been holding their tokens for a year or longer, with an additional 25% holding between 1 and 12 months.
This demonstrates the project’s “stickiness” among investors, even though 74% of holders are currently in the red.
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Strong Onchain Activties
On-chain activity for Cardano remains robust, with 7.2 billion in daily volume.
The low network value to transaction ratio of 2.62 suggests that ADA may be undervalued at present. Recent developments, such as partnerships in Dubai and the introduction of the Hydra layer 2 scaling solution, are reflections of the project’s ongoing progress and real-world applications.
Upcoming Chang Hard Fork
The analyst also sees the upcoming Chang hard fork scheduled for September 1 as a potential make-or-break moment for Cardano.
This upgrade will usher in the Voltaire era, introducing community-run governance, voting, and Treasury management. With a 1.5 billion ADA treasury at stake, token holders will soon have the ability to influence the project’s direction through decentralized voting.
While the hard fork has generated some positive enthusiasm, reflected in a recent 12-15% price increase and heightened trading volume, it remains uncertain whether these governance features will have a lasting impact on ADA’s price.
The token currently trades at nearly 39 cents, with a market cap of 13.676 billion. As Cardano approaches this crucial milestone, the crypto community is hopeful to see if the Chang hard fork can rejuvenate the project and potentially restore ADA to its former top 10 status.
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