The Cardano network has seen a lack of on-chain activities in comparison to its competitors that offer smart contracts and web3 capabilities. To prevent further decline in the coming weeks, Cardano’s (ADA) price needs to bounce back from its current support level of around 37 cents.
Co-founder of Cardano (ADA), Charles Hoskinson, has praised the development team for ensuring a sustainable future amidst the increasing mainstream adoption of Web3 protocols and digital assets. In a recent post, Hoskinson mentioned that the Cardano network is beginning to show signs of improvement, driven by the Sundae DEX protocol.
Sundae v3 protocol recently reported processing approximately 9,264 orders in the 24 hours leading up to Sunday, indicating a rise in adoption. Data from Defillama showed that SundaeSwap v3 had a total value locked of around $8.79 million, more than double its v2 upgrade.
Since the Alonzo Hard Fork in 2021, the Cardano network has witnessed significant Web3 development activities, boosting on-chain transactions. The core developers of Cardano have been focusing on Ouroboros, a secure proof-of-stake protocol based on thorough research to enable the creation of decentralized networks.
Despite facing criticism for its slow development compared to competitors like Solana (SOL), Toncoin (TON), Tron (TRX), and BSC, Cardano is on track to implement major upgrades that will support the adoption of smart contracts and web3 functionalities.
The recent announcement by the US SEC dropping all investigations against Ethereum (ETH) has provided some relief to the Cardano ecosystem. The network has made progress towards achieving enhanced decentralization through various developments over the years.
With Cardano currently in the final phases of its roadmap development, named Basho for scaling and Voltaire for governance, the community is actively involved in governance discussions to ensure decentralization.
Despite a 3% drop in the past 24 hours, with Cardano trading around 37 cents on Monday, June 24, 2024, the ADA price has decreased by over 16% in the last two weeks. Technical analysis suggests a potential rebound for ADA, possibly surpassing $1, after a significant drop in price over the past few months.
However, a sustained drop below 35 cents could result in further price declines for ADA, prolonging the recovery process. The medium-term price movement of Cardano will be influenced by Bitcoin and Ethereum prices, which are closely tied to institutional investors and have a strong correlation with the stock market.