Will Cardano’s DEX volumes be enough for ADA’s growth?

  • Cardano DEX volumes surged as interest in the network grew.
  • However, development activity on the network fell.

Cardano [ADA] witnessed a massive surge in price over the last few months. At the same time, Cardano’s DEX volumes grew as well.

At the time of writing, the trading volume on the Cardano network had surpassed the 130 million ADA mark.

Source: X

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At the same time, Cardano’s TVL (total value locked) had witnessed significant growth.

The growing liquidity, reflected in rising DEX volumes, enhances the efficiency of transactions and creates a favorable environment for traders.

Source: Artemis

As a result of these factors, there has been a notable uptick in fees generated on the network, which experienced a growth of 20.7% over the last month.

In terms of development activity, however, there was a significant decline observed.

A decline in development

AMBCrypto’s analysis of Token Terminal’s data revealed that code commits made by the developers on the Cardano network had fallen by 32.0% during the period.

This could potentially affect the network’s ability to adapt to evolving technological requirements and industry standards.

A reduction in code commits might impact the overall security and stability of the Cardano blockchain.

Regular updates and bug fixes, often addressed through continuous code development, are essential for maintaining a secure and resilient network.

A drop in developer contributions may result in delayed responses to security vulnerabilities and increased exposure to potential risks.

Moreover, a less dynamic development environment could affect Cardano’s competitive positioning in the broader blockchain space.

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Other projects with more active development might gain an edge in terms of introducing novel features, attracting users, and fostering partnerships.

Source: token terminal

At press time, ADA was trading at $0.7415, with its price having grown by 1.5% in the last 24 hours.

Source: Santiment

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