cardano

Despite Cardano’s (ADA) price declining, the network is witnessing a surge in activity. The number of daily active addresses recently surpassed 50,000, showcasing strong engagement even during a market downturn.

ADA Network Sees Increased Activity

According to data from on-chain analytics firm Santiment, Cardano’s daily active addresses hit 50,828 earlier this week. Cryptocurrency analyst Ali Martinez shared this data on X, highlighting the growing interest in the network.

Interestingly, Cardano whales have been accumulating large amounts of ADA. Reports indicate that over 100 million ADA tokens were acquired in just two days last week.

ADA Price Performance

Currently, Cardano is trading around $0.99, following a 12% drop over the past week. This decline comes after an impressive 200% surge that began in November. While the recent correction has affected short-term sentiment, the long-term outlook remains optimistic due to increased network activity and ongoing developments.

Cardano’s Upcoming Upgrades

Cardano is undergoing significant upgrades, with the recent Plomin hard fork bringing several improvements. This upgrade builds on the Chang hard fork introduced in September and enhances the network’s governance capabilities.

Through Plomin, ADA holders can now actively participate in the protocol’s future by delegating their voting power to Delegated Representatives (DReps) or becoming DReps themselves.

Beyond governance, the hard fork also introduces technical advancements. The inclusion of new Plutus primitives enhances smart contract functionality and offers better support for Stake Pool Operators, further strengthening the network.

Conclusion

Despite the recent price decline, Cardano’s growing user activity and upcoming enhancements signal strong potential for future growth. As whales continue accumulating ADA and major upgrades roll out, the long-term outlook remains promising.

Cardano (ADA) has faced significant price volatility recently, keeping it below the critical $1.00 support level. Broader market signals remain neutral to bearish, stifling upward momentum. However, ADA’s long-term holders (LTHs) are playing a key role in stabilizing the price, preventing deeper losses.

Long-Term Holders Support ADA

Cardano’s Price DAA (Daily Active Addresses) Divergence indicator has consistently flashed sell signals in recent days. This trend reflects decreasing investor activity and a lack of meaningful price growth, weakening bullish sentiment.

The current market environment has made investors cautious, with limited buying activity from both retail and institutional players. On a macro level, Cardano’s MVRV (Market Value to Realized Value) Long/Short Difference stands at a highly positive 45%. This suggests long-term holders are enjoying substantial profits and are less likely to sell during periods of uncertainty.

These resilient holders are mitigating the impact of potential sell-offs, providing ADA with a crucial support system. Their steadfastness reinforces confidence that ADA’s price could recover if broader market conditions improve.

Cardano Price Outlook: Consolidation Ahead

As of now, Cardano is trading at $0.91, below the $1.00 mark. Reclaiming $1.00 as a support level is essential but challenging, given the bearish sentiment and reduced market participation.

If current market conditions persist, ADA will likely continue consolidating within the $0.85 to $1.00 range. Historically, this zone has acted as a buffer, allowing investors to stabilize during uncertain periods.

Should bullish momentum return, Cardano could break past the $1.00 resistance level. Establishing $1.00 as firm support would negate the bearish outlook and pave the way for a potential rally to $1.23, signaling renewed investor confidence in ADA’s growth prospects.

Cardano has achieved a significant milestone with the approval of its Constitution, marking a turning point for its governance and growth. During the Cardano Constitutional Conference held in Argentina and Kenya on December 5-6, developers, investors, and ADA stakeholders came together to shape the network’s future.

Cardano’s New Constitution: A Step Forward

An impressive 95% of delegates (60 out of 63) voted in favor of the Constitution. This foundational document will guide the blockchain’s governance, scaling, and technical advancements. Its provisions include sustainable growth strategies, robust decision-making frameworks, and enhanced Treasury management.

Cardano founder Charles Hoskinson described this approval as the culmination of years of work. He highlighted the Constitution’s role in making the network smarter, more resilient, and better equipped to scale.

“Voltaire is so incredibly important. What you did here makes us more capable… Those flags represent millions of people who could join our ecosystem,” said Hoskinson during the event.

https://twitter.com/IOHK_Charles/status/1865447143949193466

Key Highlights of the Constitution

The Constitution aims to strengthen Cardano’s ecosystem by:

• Enabling sustainable growth and decentralization.
• Establishing Treasury policies for better asset management.
• Outlining the creation of legal entities to combat malicious actors.

The Constitution reflects Cardano’s broader vision under the Voltaire era, focusing on community-driven governance and decentralization.

On-Chain Endorsement Next Month

Although approved, the Constitution will move on-chain next month for further review and endorsement by decentralized representatives (DReps). Currently, there are about 800 DReps in Cardano’s ecosystem, with more than half actively contributing.

Cardano’s Rapid Growth

This milestone comes amid Cardano’s impressive growth:

• Transactions: Over 100 million total transactions have been recorded, with 2.65 million new transactions in November alone.
• Projects: Cardano now hosts 1,979 projects, adding 603 new initiatives last month.
• DeFi Surge: Total Value Locked (TVL) in Cardano’s DeFi ecosystem skyrocketed from $228 million in early November to $686 million.
• ADA Price Growth: Cardano’s native token, ADA, has surged 184% in the past 30 days, reaching $1.20—three times its previous value.

What’s Next for Cardano?

The Constitution’s approval sets the stage for even greater achievements. With its focus on decentralization, governance, and innovation, Cardano is poised to solidify its position as a leader in the blockchain space. Investors and developers alike are watching closely as this community-driven network continues to evolve.