There has been minimal buzz surrounding crypto projects since investors’ lack of confidence in the sector following the FTX crisis. Cardano [ADA] appeared to have become a safe bet. On November 13, ADA’s Daily Active Addresses (DAA) grew by 400%, according to the Cardano-aware update source.
BREAKING: Cardano $ADA new daily addresses increases 400% since FTX $FTT collapse.
— Adaverse News | Cardano and Ergo News (@AdaverseNews) November 13, 2022
The recent development might, however, still be linked to investors losing faith in centralized exchanges. Although the ecosystem wasn’t involved in providing exchange services, Cardano is still well-known for being a fully decentralized blockchain.
Thus, there has been an uptick in the number of unique addresses transacting on the Cardano chain. Similarly, deposits via the Cardano network on the said date were incredibly impressive.
Crest and troughs for ADA
Despite investors’ trust, the situation of the chain wasn’t all positive. According to Santiment, ADA’s development activity had slumped.
At press time, the on-chain analytic platform showed that development activity had decreased massively to 81.89. For context, it was as high as 189 on 2 November. This implied that the project’s commitment to improving the ecosystem or working on upgrades remained gloomy.
However, there was some respite in an area visibly impacted by the active address surge — the trading volume. After falling to 362.16 million earlier, ADA’s trading volume surged to 495.96 million, as seen from the image above. It implied that these active addresses have been involved in exchanging buy and sell orders on the network, heedless of whether they turned into gains or losses.
Additionally, none of these metrics proved that ADA could suddenly revert to bullish traits, as it lost 19% of its value in the last 24 hours. According to CoinMarketCap, ADA’s price initially grew from $0.312 to $0.329. However, it subsequently shredded off 1.39% in the last 24 hours. In considering the price-DAA divergence, the signals seemed to be in contrasting positions. With a -42.3% decrease, the price-DAA state indicated that the current ADA momentum did not signify a buy signal.
Similarly, the recent market tide has left many investors in losses. So, the price-DAA was neither in support of selling the asset for any unrealized profit. The trend prevailed in a state where investors might need to be cautious of volatility. Finally, investors expecting a significant uptick might need to lower their anticipation.