• Cardano’s development activity surges, with new features and bug fixes rolled out.
  • ADA price rally stalls, but strong development efforts suggest long-term potential.

Cardano, the proof-of-stake blockchain known for its meticulous development process, has seen a significant rise in activity over the past week. This positive news comes even as the price of its native token, ADA, experiences a slight pullback.

Active Development Bodes Well for Cardano’s Future

Data from Sentiment reveals a sharp increase in Cardano’s development activity after a brief dip. Additionally, the number of developers contributing to the project remains high. These are generally considered positive signs, as they indicate ongoing efforts to improve the blockchain’s functionality and scalability.

Input Output Global (IOG), the company behind Cardano, recently released its weekly development report. The report highlights several key developments, including:

  • Lace v.1.11: This update to Lace, a Cardano wallet, introduces improved NFT functionality, allowing users to set a custom avatar for their favorite NFTs.
  • Mithril Update: The Mithril team, focused on scaling solutions for Cardano, released distribution 2418.1. This update aims to prevent memory fragmentation within the network.
  • Cardano Blockchain Growth: The report also showcases Cardano’s network growth, with the total number of native tokens surpassing 10 million and the total number of transactions exceeding 90 million.

ADA Price Faces Short-Term Correction

While development activity flourishes, ADA’s price rally seems to be taking a breather. After a 4% rise over the previous week, the token’s value dipped by 1.7% in the last 24 hours. At the time of writing, ADA trades around $0.4676 with a market capitalization exceeding $16.6 billion.

Several on-chain metrics might explain this price correction. The NVT ratio, which indicates potential overvaluation, has risen recently. Additionally, a decline in ADA’s weighted sentiment suggests growing bearish sentiment in the market. The MVRV ratio, another indicator of overvaluation, also dipped on May 19th.

Looking Ahead: Development Over Price

While ADA’s price might be experiencing a short-term correction, Cardano’s active development is a positive sign for the project’s long-term potential. Continued development efforts focused on functionality, scalability, and user experience could lay the groundwork for future price appreciation.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.