Cardano

DeFi

Impact

April

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/cardano-sees-decline-in-network-activity-and-fee-reductions" rel="noopener noreferrer nofollow">Cardano Sees Decline in Network Activity and Fee Reductions</a><br></p>
<p style="text-align: justify">Recent data highlights a significant decrease in activity within the <a href="https://en.bitcoinhaber.net/cardanos-pivotal-moment-price-surge-and-key-challenges-ahead" rel="noopener noreferrer nofollow">Cardano</a> blockchain, marked by reduced daily transaction fees and fewer active users. Reports from Artemis reveal that the total daily fees on the Cardano network dropped significantly to $9,000 on April 15, from $17,000 at the beginning of the year. This decline mirrors a broader decrease in network interactions and the resultant impact on decentralized finance (DeFi) and non-fungible token (<a href="https://en.bitcoinhaber.net/shifting-tides-in-the-crypto-world-bitcoins-etf-countdown-and-nft-market-dynamics" rel="noopener noreferrer nofollow">NFT</a>) sectors hosted on the platform.</p>
<h2 id="user-engagement-and-transaction-fees">User Engagement and Transaction Fees</h2>
<p style="text-align: justify">The data shows a noticeable decline in daily transaction fees, correlating with reduced user engagement. Artemis recorded a peak in daily fees at $24,000 on March 11, which has since trended downwards. The decrease in network engagement is further evidenced by the reduction in daily active wallet addresses. From a high of 71,300 active addresses on March 6, the number plummeted to 38,000 by mid-April, representing a 47% fall.</p>
<h2 id="impact-on-defi-and-nft-markets">Impact on DeFi and NFT Markets</h2>
<p style="text-align: justify">The diminishing activity on the Cardano blockchain has had a noticeable impact on its DeFi and NFT ecosystems. As per DefiLlama, the total value locked in DeFi protocols on Cardano has dropped to its three-month low of $306 million. Additionally, the NFT market on Cardano has experienced a downturn, with a 39% reduction in NFT sales volume and a 46% drop in transaction count last month.</p>
<h2 id="market-valuation-and-trading-indicators">Market Valuation and Trading Indicators</h2>
<p style="text-align: justify">The market valuation of Cardano’s native token, <a href="https://en.bitcoinhaber.net/cardanos-price-could-surge-as-indicators-suggest-potential-growth" rel="noopener noreferrer nofollow">ADA</a>, has also suffered, with its trading price decreasing by 21% over the past week to $0.45. Technical indicators like the relative strength index (RSI) suggest an oversold status at 29.51, indicating that the sell-off rate has surpassed buying activity in the recent period.</p>
<h3 id="points-to-take-into-account">Points to Take into Account</h3>
<ul>
 <li>The reduction in transaction fees correlates with diminished user engagement and lower network activity.</li>
 <li>Significant impacts observed in DeFi and NFT sectors indicate broader economic effects within the blockchain ecosystem.</li>
 <li>Current trading values and momentum indicators may suggest potential market positioning for investors.</li>
</ul>
<p style="text-align: justify">The recent data reflects challenges and shifts within the Cardano ecosystem, impacting users and investors alike. Understanding these trends is crucial for participants and stakeholders in the blockchain and cryptocurrency sectors.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/cardano-sees-decline-in-network-activity-and-fee-reductions" rel="noopener noreferrer nofollow">Cardano Sees Decline in Network Activity and Fee Reductions</a></h5>

Cardano Sees Decline in Network Activity and Fee Reductions

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