Cardano （ADA） is experiencing a slowdown in growth during the current market cycle, struggling to attract new users as competitors like Ethereum and Solana gain ground. Despite maintaining its active user base, the network’s development activity and ADA’s price are on a downward trend.
Points
- Cardano’s growth in user adoption is lagging compared to competitors like Ethereum and Solana.
- Development activity on Cardano has decreased, signaling a potential loss of momentum.
- ADA’s price has dropped significantly, remaining nearly 90% below its all-time high.
- Despite challenges, Cardano maintains a stable transaction volume and strong support from long-term holders.
Cardano, once heralded as a major player in the blockchain space, is facing significant challenges in the current market cycle. According to data from IntoTheBlock, the growth of new users on the Cardano network has slowed considerably, even as its active user base remains relatively stable. This stagnation is particularly concerning as competitors like Ethereum and Solana continue to expand their user bases at a rapid pace.
One of the most troubling indicators for Cardano is the sharp decline in its development activity. August has seen a noticeable drop in the number of code commits on Cardano’s repositories, down 75% from earlier this year. In contrast, Ethereum has reported a 14% increase in development activity over the same period. This divergence highlights the growing gap between Cardano and its competitors in terms of innovation and network evolution.
Cardano’s inability to attract new users is reflected in its price performance as well. ADA, the native token of the Cardano network, has seen its price decline by 20% over the past 30 days, currently trading at around $0.3. This is a far cry from its all-time high of $3, representing a nearly 90% drop in value. The price decrease is compounded by the broader market’s downturn, but Cardano’s struggles are more pronounced given its previous position as a top contender in the crypto space.
Despite these challenges, Cardano continues to maintain a stable transaction count and a relatively high on-chain volume, with $7.2 billion in daily transactions. The network’s low Network Value to Transactions （NVT） ratio of 2.62 suggests that it is still efficiently processing transactions relative to its market cap. Additionally, long-term holders of ADA remain committed, with 40% of the total supply being held by these investors.
The Relative Strength Index （RSI） for ADA has recently stabilized at 40 after dipping into the oversold territory. This indicates that while the token is under pressure, there may be potential for a price reversal if bullish momentum returns. However, the path to recovery for Cardano is far from certain, and it will need to address its development slowdown and user growth issues to regain its footing in the competitive blockchain landscape.
解説
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Challenges in User Adoption: Cardano’s struggle to attract new users is a critical issue that could hinder its long-term growth. In a highly competitive environment, user adoption is a key metric that often correlates with network success. As more users flock to platforms like Ethereum and Solana, Cardano risks being left behind unless it can innovate and offer compelling reasons for new users to join its ecosystem.
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Decline in Development Activity: The significant drop in development activity on Cardano is another red flag. Development activity is a strong indicator of a network’s health and future potential, as it reflects ongoing innovation and improvements. The contrast between Cardano’s decline and Ethereum’s growth in this area could signal a shift in developer interest away from Cardano, which could have long-term implications for its competitiveness.
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Potential for Reversal: While the current outlook for Cardano is challenging, there are still areas of strength that could support a recovery. The network’s stable transaction volume and committed long-term holders provide a foundation that Cardano could build upon if it can reignite its development activity and attract new users. However, this will require strategic efforts to differentiate itself from more agile competitors and to regain its momentum in the blockchain space.