Cardano (ADA) Network Activity Plunges 73% in Q4 2024, Raising Concerns About Its Long-Term Viability

Despite this, bullish indicators suggest a potential price breakout, fueling debate on ADA's trajectory. By Messari.

NAIROBI (CoinChapter.com) – Cardano (ADA) faced a steep decline in network activity, raising concerns about its long-term viability. However, bullish indicators suggested a potential price breakout, fueling discussion on ADA’s trajectory.

As reported by Messari, Cardano experienced a sharp downturn in daily transactions, averaging 71,500 transactions per day and 42,900 daily active addresses. This marked a 73% drop in decentralized application (DApp) activity compared to Q4 2023.

In contrast, Solana recorded 22 million daily DApp transactions in the same period, and Ethereum saw $552 million in quarterly fees. Cardano’s transaction fees totaled just $1.8 million, highlighting its struggle to maintain market relevance.

In terms of developer activity, Electric Capital ranked Cardano 12th with 449 developers actively contributing to the blockchain. While this placed it among notable blockchains, it trailed leading platforms like Ethereum.

Despite low network activity, ADA outperformed major cryptocurrencies with a 102.82% gain over the last six months, as noted by TapTools. Bitcoin saw a 39.98% rise, and Binance Coin gained 10.53%. Meanwhile, Ethereum experienced a 19.80% decline.

Technical analysts were focused on ADA’s support levels. LaCryptoLycus, a trader on X, observed a double bottom pattern forming on the weekly timeframe. Maintaining support above $0.70 could push ADA past $1.00, but a breakdown could see it retest $0.50–$0.40.

Moreover, social media sentiment towards ADA reached its most bullish level in over four months, driven by the SEC recognizing Cardano’s smart contract use case for government services.

However, critics raised concerns over the alleged control of Cardano by three entities: the Cardano Foundation, Input Output Global (IOG), and Emurgo. Charles Hoskinson, Cardano’s founder, dismissed these claims, stating that misinformation about Cardano’s governance continues despite factual corrections.

“It takes millions of dollars and years to correct the effort,” Hoskinson said in response to the claims.

Market analysts differed in their opinions on Cardano ADA’s price outlook. Some predicted a potential bullish target of $2.95, considering the recent strong price performance and technical breakout. However, others expected a broader trading range of $0.67 to $2.21 for ADA in the coming months.

At present, ADA is trading at $0.6932, showing a decline of 3% in the last 24 hours, with a market capitalization of $24.44 billion.

The next key resistance level is at $0.80, and a break below $0.705 could confirm a deeper correction. If network activity remains low, it may be difficult for ADA to sustain long-term price gains.