Cardano: Decoding the NFT, DeFi factor in ADA’s journey
Cardano [ADA] was one of the few cryptocurrencies that were extremely affected by the bear market of Q2 and Q3. In fact, the price of ADA has witnessed a massive depreciation over the past month. Furthermore, despite the market’s bearish conditions, Cardano’s team has been trying to garner interest from the NFT communities.
However, Cardano’s efforts didn’t bear any fruit as the blockchain couldn’t generate much in terms of NFT sales.
Here’s AMBCrypto’sPrice Prediction for Cardano for 2022-2023
As can be seen from the image below, the NFT sales for Cardano were pretty much flat throughout the past 30 days, except for 28 September.
The NFT sales on this day witnessed a huge spike. The spike could thus be attributed to the excitement over the launch of a Cardano NFT gaming project.
Source: Santiment
The declining NFT growth wasn’t the only reason for Cardano’s troubles. Another factor that posed a threat to the growth of ADA could be its declining DeFi activity.
Over the past month, ADA’s total volume locked (TVL) witnessed a massive depreciation in its value. At press time, its TVL was at $75.66 million and had decreased by 0.70% in the last 24 hours.
Source: DefiLlama
To improve its chances of a revival, the Cardano team will have to work on its growth in both the NFT and the DeFi space. However, a positive future for Cardano seems far-fetched at the moment as the bearish indicators outweigh the bullish ones.
For instance, the Market Value to Realized Value (MVRV) ratio was on a downward trend since 18 September. This could make investors skeptical about investing in ADA.
Meanwhile, the developer activity was also seen to be declining since 28 September indicating that there was a reduction in Cardano’s GitHub activity.
Source:
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