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Cardano prospects: record metrics and developer activity

Cardano blockchain creator Charles Hoskinson has been arguing with his detractors on social media more often lately. But how is his Cardano project doing and what are the prospects for this cryptocurrency?
TVL Growth
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TVL is an acronym for “total value locked,” which means the total value locked. Simply put, the metric reflects how much cryptocurrency is blocked in smart contracts in a particular DeFi protocol;

According to portal DefiLlama, Cardano’s TVL reached its highest since early 2023 on June 5 at $222.8 million. As of January 1, 2023, the figure was almost 3.5 times lower at $64.84 million.. However, there is still a long way to go to the all-time high of $434.74 million set on March 28, 2022.

Source: defillama.com

Most Cardano coins (ADA) are blocked in protocols such as Minswap, Indigo and Liqwid. Over the past month, TVL of each of them increased by 31.31%, 38.12% and 90.68%, respectively.

While the number of ADA coins blocked in DeFi protocols is growing, compared to Cardano’s competitors it looks relatively modest. So, the TVL of Efirium is 276 times higher at $61.57 billion, while Avalanche’s figure is 8 times higher at $1.79 billion.

Thus, we can conclude that the overall popularity of Cardano is not at its best. It is clearly not yet possible to kill Etherium, and Charles Hoskinson’s project is also inferior to other competitors.

Technical analysis

May was the second consecutive month in which Cardano lost value. This time the decrease was 6.05%.. It should be noted that in May the fall, which began in mid-April, was stopped – from April 15 to May 11 the price of ADA fell by almost 24.5%.

The rebound in the second half of May coincided with increased activity on the Cardano network. So, from May 13 to June 1, according to Messari analysts, the number of active addresses on the platform more than doubled, from 41,962 to 88,141.

Source: messari.io

However, there is no reason for investors to be happy yet. Cardano is rather in sideways movement. In addition, the price failed to cross the 50-day moving average.

The current support is at $0.35, which we pushed up from in May.. Local resistance was the level of $0.386. It will be possible to talk about a bullish trend change after it overcomes the $0.463 level.

Source: tradingview.com

Cardano ranks seventh in market capitalization at just over $13 billion. And how is the platform doing on the fundamentals?

Cardano development

In terms of announced developments, Cardano is almost the best project. Company representatives publish weekly reports every Friday about what’s going on. The most recent one was presented to the public on June 2, 2023, and Cardano parent company IOHK reported results for May on May 31.

So, in the fifth month of 2023, one new project was launched and 14 more began development. Interestingly, the report of June 2 states two more projects that were launched. In addition, the number of native tokens issued on Cardano increased by 150,000 during May, and the number of transactions increased by 1.8 million.

Among the Cardano team’s major developments in May are:

  • Noda 8.0.0 release, which fixed some bugs and added new CLI commands and network configuration options;

  • Lace’s Lightweight Wallet platform has been updated to version 1.1.0, which adds several new features, such as new wallet recovery options and making balances in multiple fiat currencies available for review;

  • Marlowe is an open source toolkit that is designed to make it easier to test, develop and secure smart contracts on the Cardano blockchain;

  • update 0.10.0 was made, which launched the first node in the Hydra protocol that is compatible with the main network;

  • continued negotiations to improve Cardano’s decentralized control mechanism in Voltaire-era 1694;

  • The education team planned a course on the Haskell language.

Cardano’s development progress has not gone unnoticed by outside resources. Thus, analytics platform Santiment posted statistics showing that Cardano is the third most active on Github, ahead of Etherium and behind only Kusama and Polkadot.

Also ADA token is considered as one of the undervalued and believes in its growth as early as the summer of 2023. Thus, Cardano is showing quite good development results. Yes and TVL of the platform is growing, although still inferior to the main competitors. However, so far it is not reflected in the price of ADA.

This material and the information in it do not constitute personal or other investment advice. The opinions expressed herein are those of the author, research portals and experts and do not necessarily reflect the views of the company.