Cardano: Examining the ‘Hydra’ factor in ADA’s price increase

Cardano has seen a significant increase in development activity over the last seven days. However, its volume and velocity have both decreased. Furthermore, despite Cardano’s success in the NFT sector, its weighted sentiment has suffered.

Cardano, which was initially accused of delaying software updates, is now making significant strides in its development activity. Hydra received a new update following the successful launch of the Vasil hardfork, Cardano’s Layer 2 solution.


Hail Hydra

On 27 October, the team working on Hydra issued an upgrade fixing bugs and updating its UI.

Consequently, as can be seen from the image below, Cardano’s development activity grew tremendously over the past week. This hints at the fact that further updates and upgrades can be anticipated.

Besides, the number of daily active addresses on the Cardano network also spiked. It increased steadily over the last week, and at press time, it stood at 67,000.

Source: Santiment

However, its velocity declined in the last seven days. Thus, indicating that the frequency at which ADA was being moved amongst different addresses had declined.

In fact, Cardano’s volume too took a hit over the past few days. The volume went from 1.5 billion all the way to 604 million, at press time.

During the same duration, Cardano’s weighted sentiment dwindled. Evidently, the overall sentiment of the crypto community toward Cardano was negative.

Source: Santiment

Despite the negative sentiment against ADA, Cardano showed impressive results when it came to the market of NFTs.

According to  Stocktwits NFT, a data platform for NFTs, Cardano outperformed Polygon in terms of trading volume in the last 24 hours. In a tweet posted on 27 October, it was stated by Stocktwits NFT that Cardano’s NFTs registered for $890 thousand in terms of NFT volume.

Well, ADA’s price too was in a recovery mode. At the time of writing, it was changing hands at $0.406 after an increase of 17.57% over the past seven days.

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