The token Cardano (ADA) has been facing a roller-coaster ride in the cryptocurrency market despite its recent progress in the DeFi (Decentralized Finance) sector. The coin witnessed a remarkable surge of over 32%, reaching $0.37, after Ripple’s triumph over the United States SEC, instilling optimism among investors.
Despite the initial bullish victory, Cardano’s success was short-lived as the bears fought back, attempting to regain control of the situation. The bulls have fiercely defended the crucial support zone between $0.32 and $0.315. However, the broader crypto market’s downturn, especially with Bitcoin plummeting toward $29,000, prompted the bears to push ADA’s price lower.
While ADA experienced a significant drop in value over the last three months, Cardano’s DeFi activities have risen. The Total Value Locked (TVL) on the network surged by 28% during this period, with a year-to-date increase of over triple the value. Higher TVL indicates greater liquidity and potential for adoption, bringing optimism for the future of Cardano in the DeFi space.
Furthermore, amidst the challenging price action, Cardano’s transaction volumes soared to new heights, reaching a 3-month peak of 12.16 billion ADA on July 20. This indicates growing demand for the native cryptocurrency on the network and may signal positive performance in the coming months.
While ADA’s short-term market sentiment remains neutral, whales, who hold large amounts of ADA, have been consolidating their positions. As product launches and re-listings on top exchanges are anticipated, Cardano’s transaction volumes could reach new peaks, potentially leading to bullish momentum.
Cardano currently trades at $0.303, a drop of slightly over 3% in the past day. As the eighth largest coin by market cap, ADA has a live market cap of $10.6 billion and a 24-hour trading volume of around $238 million at press time.
Upcoming Mithril Launch Holds Promise for Cardano (ADA)
In the midst of the price volatility, Cardano’s development arm, Input Output Global (IOG), revealed an upcoming major milestone: the launch of Mithril. Mithril is expected to revolutionize the network’s efficiency and security significantly.
By accelerating the process of starting a full Cardano node while ensuring lightweight client ease, Mithril aims to boost the network’s speed, efficiency, and safety.
The launch of Mithril has been long-awaited since IOHK introduced its comprehensive roadmap for the upgrade in August 2022. This advancement holds immense potential, empowering developers to deploy lightweight clients and mobile applications, streamline sidechain operations, and utilize stake-based voting applications and governance solutions.