Cardano price notes further decline, report reveals 74% of ADA ecosystem coins are dead
- Cardano ecosystem ranks high in protocols that host dead coin projects, according to recent report by Alpha Quest.
- Over 74% of projects in the ADA ecosystem are considered dead because of low liquidity, down website, deleted or inactive X accounts.
- ADA price declined nearly 7% in the past week, nearly 3% on the day.
Cardano price continued its decline on Monday. ADA price dropped nearly 3% in the past 24 hours. In a recent report by Alpha Quest, the protocol ranks in the top 10 blockchains that host dead coins.
The researchers consider an asset a dead coin if it has low liquidity, a deleted or inactive X account, down website or is delisted from aggregator CoinMarketCap.
Also read: Altcoins facing a risk of correction after massive rally: Cardano, Chiliz, Fetch.AI, Lido, The Graph
Cardano ecosystem is a dead coin cemetery
Cardano blockchain competes with the second largest asset by market capitalization, Ethereum. Despite the technical developments and updates in Cardano, the protocol emerged as a chain with one of the highest percentages of dead coins.
Over 74% of the projects in the Cardano ecosystem qualify as dead coins and this number is alarming for a smart contract protocol. Cardano and Terra ecosystems stand out as the outliers with a high percentage of dead coins on their blockchains.
Cardano price declines
ADA price dropped nearly 7% in the past week. The asset is currently in a state of decline as its competitors, like Ethereum, make strides and offer gains to holders.
Cardano price is likely to decline to support at $0.54, the 50% Fibonacci retracement of its rally to its 2024 high.
The red bars on the Moving Average Convergence Divergence indicator (MACD) and the Awesome Oscillator (AO) signal that the altcoin is likely to suffer further correction.
ADA/USDT 1-day chart
A daily candlestick close above the 23.6% Fibonacci retracement at $0.59 could invalidate the bearish thesis for Cardano price.
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.
