Cardano has experienced a notable recovery, rebounding by 40% from its lowest point of $0.3174 this month. However, it remains 45% below its highest point this year. Despite being a major player in the cryptocurrency space, Cardano has faced significant pressure recently, with its market cap decreasing from over $90 billion in 2021 to $15.9 billion as of Wednesday.

Developer and Investor Activity

Recent data indicates a decline in Cardano’s interest among developers and investors. According to industry metrics, the number of monthly developer commits has dropped from 3,380 in May to 3,300 in June, and currently stands at less than 2,000 this month.

Additionally, the amount of money locked in Cardano’s DeFi applications has decreased from a record high of 633 million ADA in December 2023 to 538 million ADA recently. Its TVL (Total Value Locked) of $247 million is significantly smaller compared to newer blockchains like Base, Blast, Sui, Mode, and Aptos.

Market Comparison

Unlike Solana, BNB Chain, and Ethereum, Cardano lacks a major meme coin or decentralized exchange (DEX). Minswap, its largest DEX, handled less than $1 million in transactions in the past 24 hours, whereas Solana’s Raydium processed $851 million.

Cardano’s market share in the declining NFT market is also limited, with sales worth $1.6 million in the last 30 days. The number of active Cardano addresses has dropped to less than 30,000, and the amount of stablecoins is less than $20 million.

Trader Sentiment

Trader sentiment towards Cardano has been waning recently. The daily trading volume of Cardano has remained below $500 million since July 5th. In contrast, smaller meme coins like Pepe and Dogwifhat are handling over $700 million daily. This trend is also observed in the futures market.

Data indicates that interest among traders has dropped to the lowest level in months. Many traders are concerned about the coin’s underperformance and the lack of developer activity.

Trader sentiment is following the price action. With XRP making an emergence this week, bullish narratives have erupted. On the other end of the spectrum, Cardano is seeing the most bearishness in over a year. Counter-trading the crowd’s consensus could prove profitable.

Staking Yields and Technical Analysis

Cardano also has one of the lowest staking yields in the market, with a yield of less than 3% according to recent data. Technically, Cardano remains below the 200-day moving average, suggesting that the ongoing recovery might be short-lived.

On a positive note, the crypto fear and greed index is about to flash green as hopes of a Federal Reserve rate cut rise. Therefore, the ADA price will likely increase if Bitcoin sustains its rally and crosses the year-to-date high of $73,400.

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