Cardano: Will ADA react to the spike in development activity

ADA’s development activity and active development contributor count spiked last week.
The token was down by nearly 2%, but investor confidence in ADA remained high.

Cardano’s [ADA] development activity spiked sharply over the last seven days, reflecting developers’ efforts to improve the blockchain. Input Output Global also released its latest edition of Cardano’s weekly development report, shedding light on the work done by different teams over the last week. While development around the blockchain increased, ADA’s price dropped over the past few days.

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A closer look at Cardano’s development activity

As per Santiment’s data, Cardano’s development activity surged substantially over the last week. ADA’s active dev. contributors count also increased.

Source: Santiment

IOG’s latest report revealed what caused this surge in development activity last week. Cardano’s weekly development report mentioned that the majority of the Hydra and Mithril teams participated in a Cardano scaling workshop in Nantes, France.

The BASHO teams also resolved a bug that was causing hydra-node to crash when querying layer 1 and also worked on the refactoring and standardization of the errors in Mithril nodes.

Another week, another #Cardano development update, now live on #EssentialCardano. Check this week’s highlights and get the latest on core technology, wallets and services, smart contracts, and scaling and governance developments. https://t.co/7Zmx7WRWqF

— Input Output (@InputOutputHK) September 22, 2023

Last week in Voltaire, Intersect hosted a town hall, which faced some technical challenges that prohibited the planned GovTool demo.

On one hand, the Plutus tools team kept rewriting Marconi EpochState indexers with a simplified API. On the other hand, the Lace team made progress on the multi-delegation portfolio adjustments, fixed some issues related to unregistering a pool, worked on test coverage for Trezor support, and worked on UI/UX workflow for the DApp Store.

Apart from this, the report also mentioned ADA’s latest network statistics. For instance, ADA’s total transactions crossed 75.3 million, and its total number of native tokens reached 8.8 million.

Cardano investors are stressed

Though ADA’s development activity remained high, it failed to positively affect ADA’s price action. According to CoinMarketCap, ADA was down by nearly 2% over the last seven days.

At the time of writing, ADA was trading at $0.2456 with a market capitalization of over $8.6 billion. ADA also witnessed a drop in daily active addresses last week, which was concerning. Nonetheless, its velocity was high, meaning that ADA was used in transactions more often within a set time frame.

Source: Santiment

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

Though the current price trend was negative, the market’s confidence in ADA was high. According to LunarCrush, bearish sentiment around the token dropped by nearly 2% last week, while bullish sentiment increased by 6%.

Additionally, Coinglass’ data revealed that ADA’s demand in the derivatives market was high as its finding rate increased.