The Cardano network continues to celebrate new technical milestones, recently surpassing 90 million transactions. However, this fundamental optimism is not reflected in the price of its native token, ADA, which shows signs of weakness. Recent data from the on-chain analysis platform IntoTheBlock reveals a concerning divergence. This situation highlights the disconnect between the blockchain‘s activity and the asset’s market value.
The Cardano network growth is tangible according to the latest network reports. The platform has processed over 90.3 million transactions since its inception, a figure that demonstrates consistent user activity. Furthermore, the native token ecosystem continues to expand. Nearly 10 million native tokens have been issued using 174,200 different minting policies. Plutus V1 and V2 smart contracts are also seeing an increase. The network now supports thousands of scripts, strengthening its infrastructure for decentralized applications.
The decentralized finance (DeFi) sector on Cardano also shows vitality. The Total Value Locked (TVL), although modest compared to leaders like Ethereum, has maintained a positive trend in 2024. This consolidated TVL suggests increased trust and utility within Cardano’s DeFi ecosystem. These figures, taken together, paint a picture of a healthy and actively expanding network.
These milestones are not just numbers; they demonstrate the robustness and steady adoption of Cardano’s technology. The ability to efficiently process millions of transactions is crucial for its long-term vision. For years, Cardano faced criticism for its slow development and academic approach. However, current figures suggest that the network’s infrastructure is finally maturing.
This progress is fundamental for competing in the saturated smart contract space. A higher number of transactions and native tokens indicates a more active developer ecosystem. This is vital for attracting projects and users, which, theoretically, should drive demand for the ADA token. The network is proving that its architecture can handle a growing workload.
If the network is growing, why isn’t ADA’s price responding?
This is where the notable disconnection arises. On-chain analysis from IntoTheBlock paints a bleak picture for investors. The data indicates that ADA’s price is underperforming compared to its main competitors. Although the network thrives, the token struggles to gain bullish traction.
A key metric, the MVRV (Market Value to Realized Value), supports this view. Cardano’s MVRV ratio has shown negative readings, suggesting the asset is potentially undervalued or in a capitulation phase. Even worse, the data on holder profitability is alarming. IntoTheBlock reports that over 80% of ADA holders are currently “out of the money” (at a loss).
This situation creates significant selling pressure. Every time the price attempts to rise, it meets resistance from investors looking to exit at their break-even point. The lack of new buyers and pressure from existing holders create a difficult ceiling for the ADA price to break.
Cardano finds itself at a very clear technical and financial crossroads. While the Cardano network growth provides a solid foundation for the future, short-term price action remains decidedly bearish. The current narrative is one of strong fundamental development versus negative market sentiment.
Investors and developers are watching closely. The question is whether ecosystem development can finally boost market confidence and attract new capital. The evolution of on-chain metrics, combined with network updates, will be key. They will determine if ADA can reverse this negative trend or if it will remain disconnected from its own network’s achievements.
