• Cardano price pulled back to trade at $0.421 after marking a seven-month high.
  • Quarter on quarter, Cardano’s DeFi presence has grown by 172%, boasting a TVL of $138 million.
  • ADA holders seem to have regained confidence in the altcoin, with transaction volume noting a 650% increase in three months.

Cardano price observed a rather spectacular Q1 this year as, along with the token, the blockchain also noted growth on all fronts. This triggered an optimistic outlook in the investors that had been missing since the lackluster Alonzo upgrade of August 2021.

Cardano price rise brings back investors’ confidence

In three and a half months, Cardano price has managed to chart more than 85% in gains before slipping by 7% over the last four days. Trading at $0.423, ADA has surpassed the likes of Dogecoin and Polygon in terms of market capitalization to take back the spot of the seventh biggest crypto asset. 

ADA/USD 1-day chart

ADA/USD 1-day chart

Its performance in the Decentralized Finance (DeFi) space also seems to be improving. The quarter-on-quarter total value locked (TVL) across Cardano’s 19 protocols has increased by a stellar 172% from $50 million to $138 million.

However, despite this development, Cardano still has not established itself in the ever-growing DeFi space, in which its competitors, such as Arbitrum, have already gained domination.

Regardless, the network has regained a crucial element that would be critical to its consistent growth hereon, the user base. ADA holders, who have been skeptical in their behavior for almost a year and a half now, are returning to their bullish state, evidence of which can be found in their participation.

On-chain transaction volume, which had been dipping since April 2021, began increasing again as the year started. In the span of three months, the volume has shot up from $2 billion on average to $15.6 billion at its peak this week. This signifies a 650% increase over the first quarter.

Cardano transaction volume

Cardano transaction volume

Furthermore, ADA whales have also refrained from selling since the beginning of the year, which has been one of the biggest driving factors in Cardano price rally. Although heavy accumulation would have supported a larger rise, the lack of selling at the hands of cohorts holding between 100,000 to 10 million ADA, has kept investors’ faith intact for recovery.

Cardano whale activity

Cardano whale activity

This newfound confidence was visible in the overall discussions surrounding Cardano as well, given its social presence shot up by 300% in the last three months. Even though most of the growth came towards the end of March, this is the most demand ADA has seen since April 2022. At the moment, Cardano is part of every three queries out of 100 regarding crypto, which was the blockchain’s average back in July 2021.

Cardano social presence

Cardano social presence

If ADA holders can sustain this optimistic attitude throughout the second quarter as well, Cardano price could chart some more gains potentially feeding further into Cardano enthusiasts' impossible dreams of a $1 trillion market capitalization.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP