Cardano
Cardano (ADA) Surged 25% Last Time This Pattern Played Out
Cardano remains one of most heartily pressured assets on market, but it might also mean that rebound is nearing
Technical and on-chain indicators remain two main tools for analyzing and predicting movements on the cryptocurrency market, but besides them, investors often use sentiment-based indicators that can help to determine when the asset is overbought or oversold and when is the time to get out.
The sentiment indicator developed by santiment on-chain analysis platform shows that Cardano’s price action caused the biggest drop in sentiment toward the eighth-biggest asset in the world by the market capitalization.
Such strong negativity toward Cardano was seen back in January and caused the spike in volatility that resulted in a 24% price increase in five days. It then dragged the sentiment around the coin back to the positivity zone.
What might cause another Cardano rebound?
The fundamental factor that comes into play is the Vasil Hard fork, which brings new functions and possibilities to developers who are creating projects and solutions on Cardano or moving them from chains like Solidity or Ethereum.
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The rising number of new projects will attract new users and increase the usability of the platform, hence its revenue, which directly affects the price of ADA on the market.
A secondary factor is that Cardano is one of the most technically oversold assets on the cryptocurrency market. Such a large selling pressure does not make sense compared to the fundamental growth of the project.
One could tie the main reason behind the abnormal price performance to the large number of small holders that constantly create pressure on the price of ADA whenever it manages to enter a recovery rally and gain some momentum. But with the help of new inflows and funds redistribution, ADA might show us another recovery attempt in 2022.
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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