Thursday, April 18, 2024

Cardano price decline linked to high number of inactive ecosystem projects (report).

The price of Cardano dropped again on Monday. The price of ADA fell by almost 3% the previous day. According to Alpha Quest research published recently, the system is among the top 10 blockchains that store dead coins.

If an asset has little liquidity, an inactive or deleted X account, a broken website, or is removed from the CoinMarketCap aggregator, the researchers classify it as a dead coin.

The Cardano ecosystem is a dead coin cemetery

Ethereum, the second-largest asset by market value, is a rival to the Cardano blockchain. Even with all of Cardano’s technological advancements and upgrades, the protocol still has one of the highest rates of dead coins.

The Cardano ecosystem has over 74% of projects that are dead coins, which is concerning for smart contract technology. With a large proportion of dead coins on their blockchains, the Cardano and Terra ecosystems stand out as exceptions.

Cardano prices drop

The price of ADA fell by almost 7% in the previous week. The asset is presently losing value as its rivals, such as Ethereum, advance and reward investors.

Cardano’s price is probably going to drop to $0.54, which is the 50% Fibonacci retracement of the rise to the cryptocurrency’s 2024 high.

The Awesome Oscillator (AO) and the Moving Average Convergence Divergence indicator (MACD) both display red bars, indicating that another correction to the cryptocurrency is probable.

A daily candlestick closure above the 23.6% Fibonacci retracement at $0.59 could disprove the pessimistic theory regarding the price of Cardano.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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