Cardano User Activity Drops 42% But Development Activity Stays Strong
The Key Points in Brief
Last month, Cardano (ADA) recorded a significant decrease in user activity and development. Despite a decline in various areas, such as DeFi (Decentralized Finance) and NFT (Non-Fungible Tokens), development activity remains high compared to other blockchain projects. Here you will find the most important numbers and what they mean for Cardano.
Development Activity in Focus
According to data from Santiment, Cardano came in second place last month, with a total of 424 development activities, behind Optimism. This metric is crucial as it measures the number of unique contributions to development, the total number of a project’s events, and the number of unique GitHub activities. High development activity often indicates that the likelihood of an exit scam is low. For comparison: Optimism recorded a development activity of 467.
Decline in User Activity
On-chain data shows that user activity on Cardano has decreased over the past month. According to data from Artemis, the number of users who conducted at least one transaction dropped to 28,000 – a decrease of 42% compared to the 49,000 daily active users at the end of March. The number of daily transactions and the total fees on the platform have also significantly decreased.
DeFi and NFT Sectors Affected
The low network activity was also reflected in a steady decline in the Total Value Locked (TVL) in the DeFi sector and a low sales volume in the NFT market. According to DefiLlama, Cardano’s TVL dropped to $328 million after hitting a yearly high of $520 million in mid-March. The sales volume of NFTs fell by 39% last month, based on data from CryptoSlam.
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Our Assessment
Despite the decline in user activity and challenges in the DeFi and NFT areas, Cardano remains one of the leading blockchains in terms of development activity. This indicates a strong and committed developer community that may be able to advance the platform through innovative solutions and improvements. For Cardano investors and users, it is important to keep both the short-term challenges and long-term opportunities in mind.
Sources: Artemis, CryptoSlam, DefiLlama, Santiment
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