- The issues raised caused a rise in negative sentiment.
- Developers seem to be coming to the project’s rescue.
Cardano [ADA] has been garnering a lot of attention in recent times but for the wrong reasons. According to AMBCrypto’s assessment of the market, conversations around the projects have surged.
However, most of them centered around Cardano’s cons. As a result, the broader sentiment around ADA was bearish. Based on our findings, the Cardano community was not happy with developments on the network.
Is this a red flag?
This might sound surprising to those who have followed our previous articles. But it is true, that development activity has been declining on the network. At press time, on-chain data showed that the metric was 77.69.
In December 2023, this same metric peaked at 128. AMBCrypto also found that the decline has triggered concerns about the project.
From our investigation, some concerns ranged from Cardano’s governance model to ADA’s adoption.
Some argued that Cardano’governance model was too centralized. Others mentioned that the project’s inability to deliver on some of its promises was hindering ADA’s adoption.
As a result of this, the Weighted Sentiment dropped to the negative region.
Source: Santiment
Furthermore, we checked if the issues raised about ADA’s adoption were valid. One of the ways we did this was by looking at the activity on the network.
First, we evaluated the 24-hour active addresses. According to Santiment’s data, the active addresses on Cardano were 32,100.
Compared to what the metric was on the 21st of March, this number was extremely low.
Active addresses track the number of participants making successful transactions on a network. Hence, the decrease implied that users who flocked in ADA’s direction a few days back were no more present.
However, it seems that the project might soon experience positive changes. This prediction was based on the Development Activity Contributors Count.
Developers are coming back
On the 24th of March, this metric was at a low point. But at press time, the number had increased. This suggested that code commits deployed to Cardano were increasing.
If this metric continues to increase, then developments on the network might revisit previous highs. Moreover, market participants might change their view from bearish to bullish.
Source: Santiment
However, the return of developers alone might not be enough to change participants’ perspectives. ADA’s price is another area that market players might be looking to.
Realistic or not, here’s ADA’s market cap in DOGE’s terms
As of this writing, ADA had lost the eighth position in terms of market cap to Dogecoin [DOGE]. Also, the price of the cryptocurrency had decreased by 5.18% in the last seven days.
If ADA recovers, then the project can restore confidence to its community. On the other hand, a further decline might intensify the skepticism.