Cardano (ADA) continues to dominate as the foremost blockchain protocol in terms of development activity, witnessing a significant surge in GitHub commits compared to Ethereum. Analyst Ali Martinez predicts that ADA will go through a consolidation phase before experiencing a breakout, potentially driving its price to $5 by the end of 2024.
Cardano, a proof-of-stake (PoS) layer-1 (L1) blockchain protocol, has maintained its leading position in development activity, surpassing Ethereum and other top layer-1 blockchain networks. According to data from crypto analytics platform IntoTheBlock (ITB), Cardano’s GitHub Commits totaled 978,780 between March 11 and 17, surpassing Ethereum’s 407,170 during the same period.
Cardano leads in developer activity among the top L1 protocols, consistently delivering the highest number of weekly commits. Other prominent L1 protocols like Avalanche, Litecoin, and Tron also received notable developer commits but fell behind Cardano. Market experts suggest that developer activity reflects the protocol’s potential, indicating the likelihood of new decentralized applications (dApps) being launched and updates to existing ones, thereby strengthening the resilience of the protocols.
Cardano continues to make new developments to accelerate the growth of its ecosystem. Recently, Cardano introduced its inaugural fiat-backed stablecoin, USDM, created by Mehen Finance. USDM incorporates a crucial mechanism to prevent over-issuance and is monitored by Charli3, a decentralized oracle tailored for the Cardano network. Additionally, Cardano founder Charles Hoskinson hinted at an upcoming integration with Firefly, created by Hyperledger Labs, which streamlines the creation of decentralized blockchain applications and bridges the gap between fundamental blockchain functions and sophisticated business processes.
Despite a 9% decline in Cardano’s price over the past 24 hours, analyst Ali Martinez highlights a historical trend that suggests Cardano’s current price trajectory resembles a consolidation phase before a significant breakout observed during the previous market cycle. Martinez predicts that Cardano will likely consolidate between $0.55 and $0.8 in the near term, followed by a substantial breakout pushing its value to around $1.7. After reaching this milestone, another consolidation phase is expected before a more bullish breakout, potentially driving ADA’s price to $5 by the end of 2024.
Furthermore, CoinGlass data reveals an impressive 83% surge in derivatives trading volume for Cardano (ADA), reaching $1.61 billion. This surge reflects the increased interest in the token among cryptocurrency traders. However, ADA holders faced challenges as over $4.79 million worth of open positions in ADA were liquidated within the past 24 hours. Surprisingly, the majority of these liquidations were long positions, suggesting a surge in buying activity, while short positions accounted for only $244,490.