Cardano Staking Not Doing As Well As Expected? The migration from proof-of-work to proof-of-stake was in development for more than 5 years before Cardano enabled staking.
The mainnet launch is on the way but staking has already started on the testnet that was launched in July. The new data shows that the decline in Cardano activity is bad. Over the last week, transactions on the Cardano blockchain have moved within the 1,000 and 4,000 range for the first time in a long time. This is a significant drop since transactions reached an all-time high of 18,500 on the 30th of July 2020.
The surge in July was most likely as a direct result of the Shelly hardfork. The analysis shows that daily transactions have been declining steadily since 2018. The amount of daily trading volume moved below the $10k level. In May the daily volume for the Cardano ADA token reached a yearly high of $550,000.
It’s not clear why the on-chain activity is declining but it might be partly due to the general downtrend in the market. It’s too soon to know if the Shelley hardfork and the PoS protocol is being well received by the cryptocurrency community. It’s also possible that people are waiting for things to settle before they decide to join or invest in the network.
- On-chain Analysis Says Shows a Plummet in Activity on the Cardano Blockchain
- Cardano ADA is Bearish Against the USD but There is Hope for a Bullish Momentum
- A Rise Above the $0.1300 Level is Crucial if the Token is to Recover
The year 2020 has been a busy one for Cardano. If you’ve been paying attention to the progress of the blockchain, then you probably already know how far they have gone. The migration from proof-of-work to proof-of-stake is going smoothly but new data reveals a decline in activity on the Cardano blockchain. What does this mean? Are people losing interest in the Cardano blockchain amid the migration? Is proof-of-work a more attractive protocol than proof-of-stake? How long will it take for on-chain activity to increase?
A Rise Above the $0.1300 Level is Crucial if the Token is to Recover
At the time of writing, the price of the Cardano ADA token was $0.093416. This means that it is down by 1.32% against the USD and down by 0.33% against Bitcoin BTC. The trading volume over 24 hours was $689,652,796 and the market capitalization was $2,906,415,569. The token has been on a roller-coaster ride over the last few weeks.
A few days ago, the token moved above the $0.1000 level but it was unable to hold the line above this level. If Cardano ADA manages to move above this level, we would not mark the beginning of the bull run until it moves above the $0.1300 level.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
