Will Cardano development activity help ADA weather the crypto winter?

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Cardano ranked number one in development activity. However, its dApp business declined, along with its TVL and revenue.

Santiment, a leading crypto analytics firm, announced on December 30 that Cardano [ADA]has outperformed other major cryptocurrencies in terms of development activity.

Top 2022 #blockchain protocols by development activity:

1) #Cardano $ADA2) #Polkadot $DOT3) #Cosmos $ATOM4) #Ethereum $ETH5) #InternetComputer $ICP6) #Elrond $EGLD7) #Flow $FLOW8) #Optimism $OP9) #Aptos $APT10) #Polygon $ MATIC

Read our take: https://t.co/fYiOz86GWK

— Santiment (@santimentfeed) December 29, 2022

Read Cardano [ADA] Price Prediction2023-24

Domination in development

Cryptocurrencies such as Polkadot [DOT] and ATOM, known for their growing ecosystem and development activity, could not compete with Cardano this time. It just meant that the Cardano team developers had made more significant contributions to the network’s GitHub.

Upgrades such as the Vasil Hardfork and the developments done on the Daedalus Wallet could be one of the reasons for the increase in the development activity metric.

Source: Santiment

Well, despite the growing development activity on the Cardanos network, its ecosystem has not seen any growth.

Cardano is witnessing a drop in activity

According to data provided by DappRadar, several dApps on the Cardano network failed to invite users to their platforms. Popular dApps such as Miniswap and SundaeSwap saw a drop of 10.03% and 16.42% respectively, in terms of unique active wallets.

In fact, the volume of Miniswaps and the number of transactions have also dropped. Over the past month, Miniswap volume has decreased by 27.06% and the number of transactions has dropped by 12.32%.

Source: RadarDapp

The drop in dApp activity has impacted Cardanos TVL. Based on the data collected by DefiLlama, Cardanos TVL has decreased significantly. Over the past few months, the overall TVL generated by Cardano has fallen from $58 million to $50 million.

This ended up affecting the fees generated by Cardano, which fell by 24.4% over the past week. According to Token Terminal, the overall fee collected by Cardano was $189,300.

Source: DéfiLlama

These developments had a negative impact on the Cardanos token, ADA. According to data collected by Santiment, the number of daily active addresses on the network had decreased.

It has fallen from 60,000 to 17,000 in the past month. Even the speed of Cardanos has decreased over the same period. Thus, suggesting that the frequency at which ADA was traded had decreased.

Source: Santiment

Whether Cardano’s increased development activity will help it meet the challenges ahead remains to be seen. However, at the time of writing, ADA is trading at $0.240 and its price has fallen by 1.45% in the last 24 hours.

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