Are Cardano and ADA Losing Popularity Based on Fee Trends?

The daily network fees for Cardano's ADA have reached a low for the year so far, as the usage of Layer 1 blockchain decreases, according to data from Artemis. This decrease has been observed on a daily basis.

On April 15th, the amount of fees paid by Cardano users was $9,000, which is a decrease of over 90% from the $17,000 recorded on January 1st.

The data from Artemis revealed that Cardano experienced its highest daily transaction fees of $24,000 on March 11th and has since been on a downward trend.

Source: Artemis

The decrease in user activity on the network is the primary reason for the decline in daily transaction fees on Cardano.

According to data on the blockchain, the number of unique wallet addresses engaging with Cardano reached a yearly high of 71,300 on March 6th before beginning to decrease.

As of 14th April, Cardano's daily active address count has dropped by 47% to 38,000.

According to the data from Artemis, there has been a 47% decline in the number of transactions completed on Cardano daily, which is in correlation with the decrease in daily active addresses on the chain. This decline has been observed in the past month.

The DeFi and NFT ecosystems are facing difficulties

The decrease in user engagement on Cardano over the last couple of weeks has had an impact on its DeFi and NFT ecosystems.

According to the statistics provided by DefiLlama, the TVL (total value of assets locked) in Cardano's DeFi protocols has dropped to its lowest point in three months. As of now, the TVL stands at $306 million.

On March 15th, the TVL of the network reached a peak of $456 million for the year and has since decreased by 33%.

In terms of its NFT industry, Cardano has experienced a comparable decrease.

According to CryptoSlam, there has been a 39% decrease in NFT sales volume on the network in the past month, and a 46% decrease in the total number of completed NFT sales transactions.

The demand for ADA is low as well

ADA, the native coin of the network, has also been affected by the drop. Currently trading at $0.45, the value of the coin has declined by 21% over the past week.

According to the daily chart, the altcoin's main momentum indicators displayed a considerable decrease. As of now, its Relative Strength Index (RSI) stands at 29.51, indicating an oversold condition.

View the 2024-25 prediction for the price of Cardano's ADA.

Similarly, the Money Flow Index (MFI) of the organization showed a downward trend at 41.94.

Original Source: ADA/USDT on TradingView

Based on these values, it can be observed that the selling activity exceeded the accumulation of coins as indicated by these indicators.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice.