Cardano’s Fundamental Growth Is Finally Reflecting in the Coin’s Market Performance
Cardano Network’s Coin ADA is currently breaking above the 50-day average resistance line for the first time in two months, which could indicate that traders are targeting a recovery in the asset’s price in the future, according to TradingView.
According to the chart provided, ADA reached $0.97, which is a price level above the mentioned resistance. Cardano last successfully broke the resistance in mid-January, but unfortunately it bounced back below the resistance line shortly after.
ADA held above resistance for over 180 days, which indicates that Cardano does not have enough buying power to reverse the trend. After reaching an all-time high back in August, a competitor to Ethereum failed to enter another uptrend or consolidation.
cardano fundamental development
The reason behind the vigorous growth of Cardano’s underlying assets is linked to both an increase in the number of projects on the network and an increase in the total value of funds locked in various smart contracts on the network.
As previously reported by U.Today, both adjusted transaction volume and TVL on Cardano broke records, outpacing both Bitcoin and Ethereum on the network, and the value of funds locked in Cardano-powered DeFi projects reached $270 million. .
The spike in TVL was mostly due to the release of new projects on the network such as Minswap, which became SundaeSwap’s main competitor. Overall, TVL accounts for almost 99% of the projects.
Back in the summer, Cardano introduced smart contracts powered by the network, which is why ADA grew to $3.2 in just a few months. The next major update to the network will bring the long-awaited coin burn mechanism.