Cardano outpaces Polkadot and Kusama in development activity, ADA price at crucial level
- Cardano blockchain ranked first in terms of development activity compared to rivals Polkadot, Kusama and Chainlink.
- Over the past 30 days, Cardano noted the highest Github development performance among peers, while the altcoin’s price struggled to recover from a slump.
- ADA price is below its three long-term EMAs, and the altcoin has wiped out all gains since mid-July 2023.
Cardano, one of the largest competitors of the Ethereum network, has ranked first in terms of Github commits that track development activity across blockchains. Over the past month, ADA’s development activity picked up pace, despite the decline in the altcoin’s price.
ADA price is $0.2615 at the time of writing. The altcoin is currently trading below its three long-term Exponential Moving Averages (EMAs) with no significant signs of recovery.
Also read: CAKE increasing social dominance after token burn unlikely to catalyze price recovery
Cardano outperforms competitors in development activity
Based on data from crypto intelligence tracker Santiment, Polkadot and Kusama blockchains has recorded the highest level of development activity in months. Over the past thirty days, Cardano outperformed Polkadot, Kusama, Chainlink and other rival blockchains and ranked first in development activity on Github.
While ADA price slumped and is in a downward trend, developers are consistently building. Cardano has averaged more than 500 daily submissions from developers on Github over teh past 30 days. Higher development, however, has failed to catalyze a recovery in the asset’s price.
Cardano ranks first in development activity, as recorded by Santiment
While development activity does not typically have a correlation with asset prices, it relates to the adoption and utility of the asset in the long term. Cardano’s rising development activity could, therefore, be correlated to higher adoption of the altcoin in the future. Projects are more likely to choose the Cardano blockchain for deployment of their smart contracts in response to fast-paced development on the chain.
ADA price is in a downward trend that started in mid-July 2023. After a peak of $0.3788, ADA price has been in a consistent decline, dropping to the August 17 low of $0.2383. At the time of writing, the altcoin has recovered to $0.2613, with no significant signs of recovery.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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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.
