Cardano development activity could help the Ethereum killer navigate crypto winter
- Cardano ranks first among top blockchain protocols in 2022 in terms of development activity.
- The Ethereum killer outperformed Polkadot, Cosmos, Elrond, Optimism and others to top the development activity chart.
- Total value locked on the Cardano network has declined consistently throughout crypto winter.
Cardano, a smart contract network considered an Ethereum alternative, witnessed the highest development activity when compared to other altcoins in the crypto ecosystem. Spike in development activity could fuel a bullish sentiment among ADA holders as the altcoin struggles to wipe out losses from crypto winter.
Also read: XRP price forecast 2023
Cardano development activity leaves competitors to bite the dust
Cardano is a smart contract blockchain network developed by blockchain engineering firm Input Output Global and headed by Charles Hoskinson. Throughout 2022, Cardano ecosystem topped the charts in developmental activity on its blockchain.
Based on data from crypto intelligence tracker Santiment, the Ethereum alternative ranks first in the list of top 10 networks by development activity.
Top 2022 #blockchain protocols by development activity:
— Santiment (@santimentfeed) December 29, 2022
1) #Cardano $ADA
2) #Polkadot $DOT
3) #Cosmos $ATOM
4) #Ethereum $ETH
5) #InternetComputer $ICP
6) #Elrond $EGLD
7) #Flow $FLOW
8) #Optimism $OP
9) #Aptos $APT
10) #Polygon $MATIC
Read our take: https://t.co/fYiOz86GWK
When the assets ranked in the top 10 list are ranked by their Return on Investment (ROI) since it’s token sale in USD terms, it is as follows.
ICP – 1.01
FLOW – 6.84
DOT – 14.9
EGLD – 51.0
ATOM – 93.5
ADA – 102
MATIC – 301
ETH – 385
Cardano ranks eighth in the list with an ROI of 102. It’s important to note that despite hitting developmental milestones and the massive ROI for holders the altcoin lags behind in total value locked. This metric is the DeFi equivalent of total market capitalisation.
Cardano lags behind in Total Value Locked
Based on data from DeFi tracker DappRadar, multiple decentralised applications in the network were unable to invite users to their platforms. Cardano’a popular frappe Miniswap and SundaeSwap lost 10% and 16.42% of active wallet addresses respectively.
Declining dApp activity has hampered Cardano’s total value locked.
DefiLlama, a DeFi data aggregator revealed that Cardano’s TVL had declined significantly. Within the last few months of 2022, the overall TVL generated by Cardano fell from $58 million to $50 million.
It remains to be seen whether fast paced development activity on the Cardano network will help the Ethereum killer wipe out losses from crypto winter. Cardano price is largely unchanged over the past 24 hours.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
