Activity on the Cardano network has been on the rise recently. This has come from a lot of developers moving to the network to launch their decentralized applications (DApps) on the blockchain. The rise in activity has also resulted in a direct surge in the price of its native digital asset, ADA.
Cardano Volume Surges
On Monday, it was recorded that Cardano had seen significantly more transaction volume than top competitor Ethereum. This was obviously a welcome development for the network which is still struggling to cement its place as a top decentralized finance (DeFi) contender. The rise in activity follows the implementation of the “Ghost Chain” which saw the network outperform Ethereum more than 3X in a 24-hour time period.
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Development on the network has also been a great edge for Cardano. There are currently more than 1,000 developments being carried out on the network, making it the most innovative blockchain in the space. Santiment’s data shows that development activity on the network has now reached a new all-time high.
? #Cardano is one of many #altcoins that have enjoyed a great start to the week, currently +13% in the past 24 hours. Development activity has hit #AllTimeHigh levels, as $ADA's team worked on innovating while prices were suppressed. ??https://t.co/kSqbhUZOe8 pic.twitter.com/XiFVl0NK2M
— Santiment (@santimentfeed) May 30, 2022
The crypto and blockchain space is constantly evolving and as such, Cardano always has some upgrade being carried out, the most recent of which is the Vasil Hard Fork scheduled to happen next month. More developers are now choosing to deploy on Cardano as a result of this.
Cardano’s DeFi TVL is also a testament to the innovation that is being carried out on the blockchain. Even though it is down significantly from its all-time high position, the TVL has grown more than 30% in the last 24 hours alone, putting it ahead of most networks in terms of growth.
ADA recovers to $0.63 | Source: ADAUSD on TradingView.com
Is ADA Benefitting?
The price of Cardano (ADA) has benefitted the most from the developments that are being carried out on the network. The price of the digital asset is up more than 29% in the last 24 hours, making it one of the biggest gainers of the day.
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Indicators also point to a bullish short-term for the digital asset. With the Vasil Hard Fork coming up, interest in the cryptocurrency in the rise, triggering accumulation trends among investors. The price of the digital asset is getting ready to retest the $0.67 resistance point. A successful break above this point will set ADA on a path towards $0.75.
As it is comfortably trading above its 20-day moving average, the recovery trend for ADA may not be close to over. The digital asset can very well balance above its 50-day moving average with more support coming in. However, there is significant resistance expected at the $0.7 which would take a rise in momentum to beat.
Featured image from Analystics Insight, chart from TradingView.com
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