Cardano Faces Decline in Wallet Activity Amid Market Recovery

Cardano, one of the largest cryptocurrencies by market cap, has experienced a drop in wallet activity amid the ongoing global market recovery. The recent update has sparked speculation across the crypto community, with members wondering about the apparent cause and its effect on the token’s price.

The global crypto market looks like it will begin the new week in an upward trend. According to data from CoinMarketCap, the general crypto market capitalization has grown by a noticeable 1.33% over the last day to 2.38 trillion. As such, the majority of the tokens in the market are trading in the green zone as depicted by the crypto heat map. Additionally, the sentiment surrounding the crypto market looks positive as shown in the crypto fear and greed index. However, all doesn’t seem to be going well with Cardano (ADA).

Cardano Active Wallets Drops

Santiment, a cryptocurrency tracking intelligence tool, recently released fresh data showing active wallet activities across several cryptocurrencies like Bitcoin (BTC), Dogecoin (DOGE), and Cardano (ADA). According to the data, the total amount of active Cardano (ADA) wallets has dropped by 0.13% over the last three months stressing that ADA is one of the few networks to see an active drop in wallet activities.

Conversely, Bitcoin, the largest cryptocurrency by market cap, has seen a significant increase in active wallets within the last 90 days. Per the provided data, the number of non-empty BTC wallets has grown by 2.6% within the time. Also, the largest memecoin by market cap, Dogecoin (DOGE) was mentioned. Santiment data revealed that the non-empty Dogecoin wallets have skyrocketed by 13.8% in the last three months.

Cardano Sees Significant Dip Over the Last Month

Meanwhile, the Cardano active wallet activities are not the only thing to take a hit. Over the last 30 days, the price of the token has dropped significantly, creating worry among investors. According to data from CoinMarketCap, the Cardano (ADA) price has dropped by over 28% within the recorded time. Looking at the weekly chart, ADA has also declined by 5.40% of its value within the last seven days. At the time of writing, the coin is changing hands at $0.46, representing a 1.59% increase in the last 24 hours.

The declining numbers could indicate an undervaluation opportunity or serve as a caution signifying a decline in interest in Cardano. But it is crucial to take the whole picture into account. Uncertainty presently surrounds the entire cryptocurrency market, and variations in user behavior are not unusual. As projects adapt to shifting market conditions, periods of decline and consolidation sometimes precede periods of renewed development and bull market.

With the recent Cardano network upgrade that helped boost the capacity of the network, all eyes are glued to the price reaction of the token, hoping that it will bounce back to reach certain highs in the coming months.