Wild market action! #ADA surges 11%, while on-chain data weakens. ADA’s recent price action has been highly unusual: it rocketed 11% in 24 hours, holding above $0.27 and posting its biggest single-day gain since September 18. Its total market cap has climbed back to $10.2 billion.
But strangely, on-chain ecosystem activity is falling rather than rising! Trading volume on Cardano’s native DEX has continued to shrink, dropping from $11.74 million on October 1 to $4.05 million.
This divergence is because the latest rally has been driven mainly by capital flowing into CEX spot and derivatives markets, rather than by genuine demand to use the ecosystem. ADA is still down 91% from its all-time high. This short-term rebound is driven by market sentiment, not a trend reversal, and its staying power remains to be seen.
But strangely, on-chain ecosystem activity is falling rather than rising! Trading volume on Cardano’s native DEX has continued to shrink, dropping from $11.74 million on October 1 to $4.05 million.
This divergence is because the latest rally has been driven mainly by capital flowing into CEX spot and derivatives markets, rather than by genuine demand to use the ecosystem. ADA is still down 91% from its all-time high. This short-term rebound is driven by market sentiment, not a trend reversal, and its staying power remains to be seen.
