Cardano, one of the top blockchain platforms, is bucking broader market trends with an increase in its on-chain transaction volume, despite a suppressed market value in relation to its April highs, according to recent data provided by Santiment.
The data from cryptocurrency tracking site CoinGecko shows Cardano's current price at $0.257058, up 0.7% in USD and 0.4% against Bitcoin.
The platform holds a market capitalization of just over $9 billion, with a 24-hour trading volume of nearly $97 million.
Yet, what's catching the eye of industry analysts is the consistent rise in on-chain transactions, signifying utility and demand beyond speculative trading.
Utility is often a driving factor behind a cryptocurrency's value, providing a measure of its real-world application and long-term sustainability. Despite the subdued market performance, the elevated on-chain activity for Cardano suggests a robust network that is being actively utilized. This could potentially set the stage for an eventual market rebound, especially when coupled with what the Santiment observers term as "adequate social dominance," or the general sentiment and discussion surrounding a particular asset in online forums and social media channels.
However, it is worth noting that the cryptocurrency market is notoriously volatile and often influenced by a host of factors ranging from regulatory news to macroeconomic indicators. Therefore rising on-chain transactions, which could signal strong utility, don't necessarily guarantee an immediate price increase. A lack of new money entering the market could keep prices from bouncing back in the short term.
According to U.Today’s analysis, the price outlook for ADA is bearish since the token has failed to gain ground above resistance at $0.257.