Cardano [ADA] TVL declines - will these developments turn the tide?

• Cardano published the latest edition of its weekly development report. 
• Total transactions increased, and ADA remained in demand in the futures market. 

Cardano’s [ADA] total value locked (TVL) was on a continued uptrend for several weeks as it spiked considerably. However, the hike seemed to have ended as the metrics registered a decline over the past few days. Though the decline can be attributed to ADA’s negative price actions, its TVL might soon again regain its upward momentum, and here’s why. 

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Read Cardano’s [ADA] Price Prediction 2023-24

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Development activity remains praiseworthy 

Cardano published its weekly development report on 3 March, which highlighted last week’s notable updates. The development in terms of network growth looked promising, and it can play a role in sustaining the token’s ongoing price pump in the coming days. 

The weekly #Cardano development update is now live on #EssentialCardano.

See the full report for complete details on what the IOG dev teams have been up to and get the latest on the development progress⤵️https://t.co/d928u4xFus

— Input Output (@InputOutputHK) March 3, 2023

The benchmarking runs and analysis for the new SECP primitives and the impending node v.1.35.6 release have been completed by the Cardano team. They also ran their initial UTXO-HD benchmarking tests and were still refining the setup at press time. 

Multiple teams, several updates

The Plutus team continued to improve the Plutus debugger and focused on increasing the script’s capacity by including Plutonomy optimizations, sums, and products. On the other hand, the Hydra team kept aligning the Hydra Head protocol logic implementation with the specification.

In addition, they finished implementing the minting strategy, defined message authentication with researchers, and planned further work for mainnet compatibility. Apart from this, Cardano’s Mithril team worked on implementing the era activation mechanism in their test networks and getting ready to upgrade the SPO-operated signer nodes.

How Cardano performed over the last week

The report also mentioned a few key metrics of the Cardano network. For instance, the total number of transactions increased by a notch and reached 62.2 million. The number of projects building on Cardano also increased from 1205 to 1209 last week, and the number of native tokens reached 7.87 million. 

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Realistic or not, here’s ADA market cap in BTC’s terms

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On-chain performance was decent 

Santiment’s chart revealed that ADA received a stable demand from the derivatives market, as its DyDx funding rate was consistently up. This was a positive development, despite the plummet in ADA’s price. Positive sentiments around ADA also spiked, reflecting investors’ confidence. However, ADA’s MVRV Ratio was concerning as it declined considerably last week, thanks to the price drop.

According to CoinMarketCap, ADA’s price increased by nearly 3% in the last 24 hours. At the time of writing, it was trading at $0.3409, with a market capitalization of more than $11 billion.