One of the hardest things to explain in the cryptocurrency market is the plummeting price of a token despite steady increments in the number of wallets holding the token.
According to the latest data from Cardano Blockchain Insights, the number of wallets on the Cardano Blockchain holding its native token, ADA grew by over 70,000 in the last 30 days. This showed that an average of 2,000 wallets were created on the Cardano Network over the course of the last 30 days.
However, over this period, the price of the token suffered a significant decimation even in the face of the Vasil Hard Fork scheduled for 29 June 2022.
“What else should we know about the last 30 days?”, you might ask. Well, find your answers below.
No rest for ADA holders
The last 30 days have been marked by a significant decline in the price per ADA token. Standing at $0.5245 at the time of writing, the token shed over 40% of its price within the 30-day window period.
Despite recording a steady increment in the number of wallets holding the token, the decimation that plagued the cryptocurrency market over the last couple of months has made it significantly difficult for ADA to display any growth on a price front.
Source: CoinMarketCap
Within the same period, the market capitalization of the token plummeted even further. At over $30 billion 30 days ago, the market cap for ADA declined by 43% to leave it at $17.24 billion at the time of press.
Source: CoinMarketCap
The 12 May “Phenomenon”
Over the course of the last 30 days, on-chain data showed that the ADA token recorded significant strides on 12 May.
With the number of unique addresses transacting the ADA token on a daily basis pegged at 118.93k on 11 May, 12 May ushered in a spike. The daily active addresses transacting the token spiked by 31% on 12 May. However, the index for this metric has since taken on a downtrend. At 26.5k at the time of press, the daily addresses transacting the ADA token declined by over 80%.
Source: Santiment
Also, over the course of the last 30 days, 12 May was marked by a spike in trading volume for the Cardano native token. With a high of 2.79 billion recorded in trading volume, it has since suffered a 97% decline, pegging it the trading volume at 651.31 million at the time of press.
Source: Santiment
The whales were also seen to have made some movements on 12 May. For transactions over $1 million, ADA recorded a high of 311 transactions on 12 May.
This was, however, followed by a steady decline that pegged this whale transactions count at 32 at the time of writing. Similarly, for transactions over $100k, a high of 2,397 transactions were recorded on 12 May, whereas the number stood at 145 at press time, indicating a downward trend.
Source: Santiment
With the Vasil Hard Fork in view and as the ADA token continues to enjoy different utility across the board, a price retracement might be in the token’s nearest future.