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Cardano weathered the turbulent April storm, marked by market turbulence and regulatory issues, and came out with a glimmer of growth. Despite the obstacles, the native cryptocurrency of the blockchain platform, ADA, has managed to hold its ground and even make notable progress along the way.
The recently released Cardano monthly report for April has shed some light on some intriguing developments regarding network activity. The update offers information on various aspects of Cardano’s performance throughout April, providing a comprehensive overview of the platform’s progress.
Here’s what happened to Cardano:
Network Activity Shows Positive Growth Despite Challenges
Cardano’s latest monthly report for April shows that the network saw a significant spike in transactional activity with a 2.49% increase to 65.6M transactions and a 1.19% increase in the number of wallets.
The report shows that simple transactions make up the majority, accounting for 49% of total transactions, while smart contract transactions grew by 30%, with metadata accounting for the rest. The report suggests that the growing usefulness of Cardano is driving significant growth.
#cardano On-chain Stats 🚀
Let’s keep growing #CardanoCommunity! 💪 pic.twitter.com/6Ct5iGW67k
— Cardano Foundation (@Cardano_CF) May 1, 2023
However, despite the positive activity on the network, the price of ADA has declined over the past 24 hours, trading at $0.3875, a 0.34% drop. The cryptocurrency’s bearish momentum continued, dropping 2.43% over the past seven days.
It remains to be seen how the increase in Cardano network activity will affect the price of ADA in the long term.
ADA positive 1st half of April followed by market decline
Meanwhile, in addition to the rise in network activity, Cardano’s monthly report also noted impressive ADA results in the first two weeks of April with a price increase of 23%. However, then the cryptocurrency experienced a significant decline, losing almost all the gains made.
The total market capitalization of ADA is $13 billion on the daily chart of TradingView.com.
Despite this, Cardano’s total locked-in value (TVL) has increased significantly, rising from a low of $138.61 million in early April to a high of $171.3 million. TVL did experience a drop in the second half of the month, settling at $152.90 million, but remained above its April low. His current TVL is $149.72 million.
Investors should be on the lookout for the potential for a sustained decline if the support level turns weak. An unstable support level could lead to a retest of the $0.35-$0.36 medium-term support range.
At the time of writing, the RSI ADA is below average and the MFI has shown signs of outflow, pointing to a possible further decline in the short term.
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