Source: Immersion Imagery – Shutterstock
- In terms of developmental activity, Cardano is ahead of Polkadot and Ethereum, as the network initiated more than 570 projects in November.
- Despite the completion of its long-awaited Vasil upgrade, the network’s native token has been underwhelming in price action as the FTX debacle rages.
Cardano has been the star of the moment in the crypto performance metrics, and only a few industry analysts saw this coming. As revealed in the latest update from Santiment, ADA’s sudden rise above others has positioned the token as the most developed among other crypto assets.
Per data from the blockchain tracking platform, Santiment, Cardano is the most actively developed digital asset, with over 570 Cardano-built projects on GitHub over the past month. Accordingly, this number of projects on Cardano is 18 percent more than its closest rival, Polkadot. These Cardano-built projects are also 35 percent ahead of the second-largest cryptocurrency, Ethereum, which stands in the fifth spot in assets with significant upgrade implementations.
However, Ethereum leads the daily development activity with Cosmos in second place, followed by Cardano in third. GitHub data disclosed that the Cardano node regularly has the largest developer attention. The node is another aggregator for the whole of the Cardano system.
Sentiment data. Source: Twitter.
— Santiment (@santimentfeed) December 1, 2022
Impact on ADA’s Price
The expectation is that Cardano’s development activity will raise the price of its native token, ADA. However, the reverse is the case, as the asset failed to react positively to the rising number of development activities. Over the past few weeks, the price of ADA has declined despite not being heavily affected by the FTX debacle.
ADA is tumbling even against Bitcoin, which had its fair share of market turmoils. Even though ADA hasn’t reacted positively to the rising level of development activities on the Cardano network, these activities can be another boost for future market successes.
Still, in a bear period like the ongoing one, ADA’s price drop doesn’t matter much. What matters in this scenario is what has been developed during the dip in anticipation of a future bull trend.
What is Next for Cardano?
Even before the collapse of FTX, Cardano’s governance token has seen increasing instability as investors await the possible outcome of its Vasil upgrade. Fast forward many weeks, the crash of the FTX ecosystem and its accompanied contagion have left investors looking away from investing in ADA. Nonetheless, Cardano developers continue to work on improving the network’s utility.
However, no matter the developments and improvements in the network, the current bear market has significantly hindered it from reaching its full potential. ADA has lost about 85 percent of its value as the market correction continues, with industry experts stating that it is unlikely to rise soon. As a result, investors on the Cardano network looking for short-term gains may be forced to consider other alternatives even as the asset promises future growth.
Nevertheless, despite the completion of its long-awaited Vasil upgrade, the network’s native token has been underwhelming in price action as the FTX debacle rages. The next few weeks will determine how far the token can reverse its downward trend.