- Cardano will test its node, according to the founder. stake pool.
- Some holders have retired ADA and taken self-custody, while other liquidated.
The 12th March is a day of celebration. Cardano’s [ADA] Charles Hoskinson, the founder of the Hyperfledge Firefly project announced on X that they would be testing it out. Hyperfledge Firefly was developed as an open-source project.source The node is designed to scale the blockchain.
Hoskinson said, however, that the test is not a guarantee Cardano will adopt the Supernode. He said that the project will test the compatibility of the Stake Pool Operator, which runs the nodes in the network.
Cardano scaling could enable additional off-chain transaction and boost user demand. The project, however, hasn’t been able reach its desired level over time. It has affected ADA as well, the native token.
ADA has traction issues
AMBCrypto, for example, evaluated ADA on-chain data Using Santiment. The total number of ADA owners has decreased from 4,49 million to 4,46 millions in just 30 days.
The price trend could explain a decline of this magnitude. ADA’s price increased 42.39% in the last month.
It is possible that some investors have taken profits, which would explain the decrease in holders. The decrease could also be because some investors are no longer investing. trust In the long term potential.
Cardano’s scaling plans could draw more investors to its token. However, that might not be enough to convince the market to join the ADA cohort.
AMBCrypto noted that development activity was declining. By December 2023 this metric would be 96.11. Nevertheless, the press-time data put it at 57.11.
In the end, there is hope for everyone who believes in this project
Data showed that the sentiment of market participants was a good indicator. bullish bias Declining. As of press time the weighted sentiment was about to drop into the negative area.
In this case, the bearish perception would be confirmed. Demand and price could drop further if there is a bearish market for the Cardano native coin.
The Mean Coin Age was another metric which suggested a positive long-term outlook for ADA. This metric indicates the relative activity of HODLers compared to short-term accounts that are looking for quick profits.
MCA spikes would indicate a possible surge in token sales. But the MCA of 90 days is not a good indicator. plunged.
The decline is a sign that long-term token holders have been accumulating the coins and retiring them to a cold wallet.
Click Here to Read Cardano’s [ADA] Price Prediction 2024-2025
The chances of them being sold may have been reduced if the tokens were in their own custody. ADA is not going to increase its price over night.
Price drops may occur if token holders later decide to exchange their tokens. On the other hand, an increase in cold storage could increase the chance of an exponential growth.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com