Cardano Prospects: Record Metrics and Developer Activity

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Cardano blockchain creator CharlesHoskinson has recently begun to argue more often with his detractors on social networks. But how is his project Cardano doing and what are the prospects for this cryptocurrency?

TVL Growth

TVL is an abbreviation for the English "total"value locked”, which means the total locked value. Simply put, the metric reflects how much cryptocurrency is locked in smart contracts in a specific DeFi protocol. 

According to the portal DefiLlama, June 5 TVLCardano reached a maximum since the beginning of 2023 - $222.8 million. On January 1, 2023, the figure was almost 3.5 times less - $64.84 million. However, up to the historical maximum of $434.74 million, set on March 28, 2022, still far.

Source: defillama.com

Highest number of Cardano coins (ADA)blocked in protocols such as Minswap, Indigo and Liqwid. Over the past month, the TVL of each of them increased by 31.31%, 38.12% and 90.68%, respectively.

Despite the fact that the number of blockedDeFi protocols for ADA coins are growing; compared to its competitors, Cardano looks relatively modest. Thus, Ethereum’s TVL is 276 times higher and amounts to $61.57 billion, while Avalanche’s figure is 8 times higher – $1.79 billion.

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Thus, we can conclude that the totalCardano's popularity is not up to par. It’s clearly not possible to kill Ethereum yet, and Charles Hoskinson’s project is also inferior to other competitors.

Technical analysis

May was the second month in a row whenCardano was losing value. This time the decrease was 6.05%. Note that in May the fall that began in mid-April was stopped - from April 15 to May 11, the price of ADA fell by almost 24.5%.

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The rise in the second half of May coincided withincreased activity on the Cardano network. Thus, from May 13 to June 1, according to Messari analysts, the number of active addresses on the platform more than doubled - from 41,962 to 88,141.

Source: messari.io

However, there is no reason for investors to be happy yet. Cardano is rather in a sideways movement. In addition, the price was unable to overcome the 50-day moving average.

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The current support level is at$0.35, which we managed to push off from in May. Local resistance was the level of $0.386. Globally, it will be possible to talk about a change in the trend to a bullish one after overcoming the $0.463 mark.

Source: tradingview.com

In terms of market capitalization, Cardano ranks seventh with a figure slightly exceeding $13 billion. How is the platform doing with its fundamentals?

Cardano Development

In terms of announced developments, Cardano isalmost the best project. Company representatives publish weekly reports every Friday on what's going on. The last of these was presented to the public on June 2, 2023, and on May 31, Cardano's parent company IOHK presented results for May.

Thus, in the fifth month of 2023, onea new project and 14 more have begun to be developed. Interestingly, the report dated June 2 announced two more launched projects. Additionally, during the month of May, the number of native tokens issued on Cardano increased by 150,000, and the number of transactions increased by 1.8 million.

Among the main developments of the Cardano team in May, the following stand out:

release of node 8.0.0, which corrected some bugs and added new CLI commands and network configuration options;

Lace light wallet platform wasupdated to version 1.1.0, which added several new features, for example, new options for restoring a wallet appeared, and balances in several fiat currencies became available for review;

Marlowe is an open source toolkit designed to simplify the testing, development and security of smart contracts on the Cardano blockchain;

update 0.10.0 was made, as a result of which the first node in the Hydra protocol was launched, compatible with the main network;

Negotiations continued to improve the decentralized governance mechanism of Cardano in the era of Voltaire - 1694;

The education department team planned a Haskell language course.

There are no successes in Cardano developmentunnoticed and third-party resources. Thus, the analytical platform Santiment published statistics according to which Cardano took third place in terms of activity on Github, overtaking Ethereum and losing only to Kusama and Polkadot.

Also, the ADA token is considered one of the undervaluedand they believe in its growth in the summer of 2023. Thus, Cardano shows quite good results in the field of development. And the TVL of the platform is growing, although it is still inferior to its main competitors. However, this is not yet reflected in the price of ADA.

This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.

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