Cardano: Decoding the NFT, DeFi factor in ADA's journey

Cardano: Decoding the NFT, DeFi factor in ADA’s journey

8 October 2022

in Meta News

Reading Time: 5 mins read

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’s Price 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

More reasons to worry

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: Santiment

But that’s not all, the crypto community’s sentiment towards Cardano also didn’t seem positive. Over the past month, the weighted sentiment against Cardano was mostly negative and had been declining since 20 September.

This decline could imply that traders were not looking favorably upon ADA, at the time of writing.