Crypto Community Estimates Cardano ($ADA) Price Drop in April Despite Growing Adoption and Whale Accumulation
The cryptocurrency community expects the price of smart contract platform Cardano ($ADA) to drop during the month of April, even as adoption continues to grow and whales accumulate the network’s native token.
According to over 800 users on CoinMarketCap’s cryptocurrency price estimates, respondents on average predicted that ADA would end the month of April trading at $0.37 per token, down about 7% from the token’s current price of around $0.3989.
The cryptocurrency community seems to be getting more bearish as time goes on, predicting a near 11% drop in May, to $0.355. It is important to point out that the predictions of the cryptocurrency community may not come to life at all.
According to the platform, the community’s historical accuracy is just over 59% with recent data showing it was around 80% in January and February 2023 after being at 6.8% in December. In March, it was 96.5%.
The negative outlook comes even at a time when Cardano is seeing an increase in buying activity from large investors, colloquially referred to as whales. These major token holders have added a total of 150 million tokens in the past month.
According to data shared by cryptoanalyst Ali Martinez of IntoTheBlock, a blockchain analytics platform, Cardanohval with between 1 million and 10 million ADA has been on a buying spree, raising over $57 million of the smart contract platform’s initial token in just a few weeks.
As CryptoGlobe reported, data from Input Output Global (IOG), responsible for Cardano’s research and development, has revealed that the network has been widely adopted by developers, as it now has over 1,200 projects being developed on top of it.
Over 8 million native assets have been minted on top of the Cardano blockchain, nearly doubling the May 2022 figure of 5 million. The Cardano network, it is worth noting, began accepting these assets on March 1, 2021.
According to data from pool.pm, there are now 8.03 million native assets on Cardano distributed across over 70,900 policies. Minting policies, according to Cardano’s documentation, are a “set of rules that govern the minting and burning of assets covered by this policy.”
Native tokens themselves are custom assets that can be interacted with “right out of the box – without the use of smart contracts.” The network’s documentation notes that native assets “can practically be treated as ada in all respects because the functionality is already built in.”
Meanwhile, as CryptoGlobe reported, the total value locked on Cardano’s decentralized finance (DeFi) ecosystem has recently hit a new all-time high of 382.8 million $ADA tokens, worth over $138.77 million at the time of writing. The total value locked on Cardano rose this year.
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