Investor interest falls while ADA perform the best?

While Cardano (ADA) was one of the best performers in the top 10 by market capitalization last month, the metrics have instead seen a decline in investor interest. The indication is that Cardano's trading volume is down 13.65% over the past 24 hours, while its derivatives trading volume is back to May levels. At the time of writing, Cardano best weekly and monthly performance rankings are in the top 10 of market capitalization. Since the end of March, Cardano (ADA) began to recover from "Black Thursday" faster than all other cryptocurrencies. Shelley's announcement that testnets successfully confirmed that the requirements for mainnet deployment have been met, has created a lot of hype for Cardano in recent weeks and has had a noticeably positive impact on prices.

ADA is priced at $0.081 with gains of 1.03% in the last 24 hours. In the weekly and monthly charts, Cardano shows a plus of 5.01% and 49.35% respectively. In the top 10, only Ethereum approaches Cardano with a double-digit yield in the monthly chart of 17.32%. By comparison, the fourth largest cryptocurrency by market capitalization, XRP, presents losses of 4.50% and Bitcoin SV has losses of 8.02 in the same period.

Along with the above, data from Coinalyze shows that the trading volume of Cardano futures has been declining since the beginning of June. In that period, ADA has remained stagnant in the range of $0.078 to $0.082. As it was rejected before breaking through the significant $0.083 resistance, investors seem to have lost interest causing the drop in trading volume mentioned above and the drop in the futures trading volume.

In line with this, the number of active Cardano addresses has also shown a significant drop. As with the indicators mentioned above, the beginning of June seems to have been the turning point that changed investors’ bullish sentiment. From that date, the number of active Cardano addresses dropped from 18,000 to just over 8,000. On the other hand, the number of new daily Cardano addresses fell from about 9,000 to about 5,000.

As can be seen in the graph below, the drop in the number of new and active addresses occurred despite the stability in ADA’s price. Furthermore, in the last 7 days active addresses have shown a drop of 26.09% and new addresses a drop of 26.27%. However, investor interest and hype may return when Shelley is released. The release of Shelley is set in almost one week, on June 29th.

Author : Reynaldo