Alonzo has been live on Cardano’s network for about two weeks. The narrative leading up to the hard fork was highly conformist, with predictions that ADA’s price would skyrocket after its introduction.
The hard fork, on the other hand, turned out to be a ‘non-performer with little impact on the token’s price. In fact, ADA’s price dropped to as low as $1.98 in the days following its debut. As a result, one could say that ADA, like the rest of the market’s tokens, succumbed to the negative broader market trend
Apart from that, the deterioration of on-chain metrics has had a cascading effect on the price of the alt. So, unless and until the situation improves, a price trend reversal appears unlikely.
According to CardanoScan, the network’s transaction count has remained rather stable over the last few days, despite crossing 111k on September 17th. This clearly suggests that few people have been using Cardano’s network recently.
In recent months, the average transfer value has also been trending downwards. Notably, the same had a significant surge in the first few days of September before plummeting. For that matter, the fraction of active addresses has been decreasing. During the week of September 7 to 24, the same declined from 9.17 percent to 2.45 percent.
Users who have been active are, for the most part, just trying out and testing the network at this point. One could argue that the Cardano market is now devoid of any meaningful momentum.
Trend Reversal on the cards?
Cardano has a slew of launches planned for the fourth quarter. With the launch of Cardax DEX, users will be able to trade ADA for other native tokens. The exchange would also have its own utility token, called CDX. GREED will also be one of the first tokens to be released on the blockchain.
Several notable projects are planned to utilize Cardano ecosystem in the next weeks, ranging from Liquid, an open-source and non-custodial liquidity protocol, to SingularityNET, a platform that allows users to design and commercialize AI services at scale. In effect, the blockchain would be used by a new set of users.
However, a significant trend reversal appears improbable until and until Cardano adoption accelerates. In fact, it would only make logical sense to expect a direct influence on the altcoin’s price if the aforementioned future events genuinely contribute to the network’s growth.