Cardano's development update looks bullish, but can it save ADA from bears?

Cardano’s weekly development report revealed bullish stats for long-term holders.
On the other hand, ADA had a tough week as its price declined by nearly 10%.

Cardano’s [ADA] development activity was on a decline after the Valentine upgrade was pushed earlier this month.

However, the situation seems to have changed in the recent past as Santiment’s chart revealed that Cardano’s development activity metric took an upward path after 23 February. Thanks to the efforts put in by the Cardano ecosystem over the last few days.

Source: Santiment

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

What are the reasons for the uptick?

Well, Cardano recently published the latest edition of its weekly development report, which highlighted the notable updates that happened in its ecosystem in the last seven 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/rlJMyLWXYX

— Input Output (@InputOutputHK) February 24, 2023

As per the report, Cardano’s networking team fixed some issues in the peer-to-peer (P2P) code.

The team also finished the Eclipse evasion design phase, which is essential for Ouroboros Genesis protocol functionality.

To clear the air, the Eclipse evasion implementation is intended to provide an eclipse evasion scheme, which is important for the safety of Genesis.

Apart from this, the team also released an updated set of network packages to be integrated with the Cardano-node master branch.

Moreover, the consensus team examined the system-level benchmark results for UTXO HD, which revealed a substantial performance regression.

While the Daedalus team worked on LedgerJS package updates to ensure efficient support for hardware wallets, the Adrestia team kept working on extending the multi-signature feature with delegation functionality in the Cardano wallet.

The report also mentioned the updated statistics of Cardano. The network’s total native tokens exceeded 7.8 million and the total projects launched on Cardano reached 117.

Moreover, it was revealed that the total number of transactions in the Cardano network touched the 61.8 million mark.

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Did ADA benefit?

While development activity was up, ADA’s performance on the price front was not promising. As per CoinMarketCap, ADA’s price declined by more than 9% in the last seven days.

At press time, it was trading at $0.3636 with a market capitalization of over $12.6 billion.

In fact, ADA’s MVRV ratio went down considerably in the last few days, thanks to the price plummet.

Moreover, its daily active addresses, after spiking on 20 February also tumbled. Thus, suggesting a lower number of users on the network.

However, despite the price drop, ADA’s demand in the derivatives market remained consistent as its DyDx funding rate was relatively high.

Positive sentiments around ADA strengthened quite a few times last week, reflecting investors’ faith in the token.

Source: Santiment

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