Cardano DEX Volumes Surge While Price Remains Bearish

Cardano’s decentralized exchange (DEX) volumes have seen a significant surge in recent days, reaching over $350 million in 24-hour trading volume. This increase in trading activity on the Cardano blockchain indicates a growing adoption of decentralized finance (DeFi) applications within the ecosystem.

Despite the rise in DEX volumes, the overall activity on the Cardano network has seen a decline. The number of daily active addresses on the network has dropped from 39,300 to 31,000, and the number of daily transactions has also decreased from 94,000 to 49,500. However, the price of ADA, Cardano’s native token, has shown a slight uptick, trading at $0.444 with a 1.89% increase in the last 24 hours.

On-chain data analysis reveals that the velocity of ADA trading has increased, indicating a higher frequency of trading activity. The MVRV ratio for ADA remains negative, suggesting that holders are currently unprofitable and may be holding onto their tokens in anticipation of future price growth.

Additionally, the Long/Short difference for ADA has declined, with new addresses holding more ADA than old addresses. This imbalance could potentially lead to increased selling pressure on ADA in the future, especially during periods of volatility and profitability.

Despite the mixed signals in trading volume and network activity, the bullish momentum around ADA seems to be increasing, as indicated by the rise in the Relative Strength Index. With holders potentially waiting for profitability before selling their holdings, ADA may have room to grow in the coming days.