- ADA’s price was strongly impacted by the SEC’s latest lawsuits against the crypto industry.
- Several on-chain metrics for ADA reached yearly highs despite its price plummeting.
- At press time, ADA was changing hands at $0.2633 following a 3.03% gain.
The pair of lawsuits by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, wherein Cardano (ADA) was labelled as a security, led to a drop in the Ethereum-killer’s price to $0.23. Despite this, some of ADA’s metrics reached yearly highs, indicating increased adoption, according to data from Santiment.
The blockchain intelligence firm Santiment reported that ADA’s trading volume surged recently – reflecting growing network activity and interest in the cryptocurrency. This heightened trading volume signifies active engagement from traders with the asset. Cardano’s daily active addresses hit a yearly high, further indicating increased user activity.
Alongside this, its social dominance also surged, suggesting a highly active market. Despite the price drop, these metrics show increased transactions and interest, possibly indicating a market bottom for Cardano.
According to DeFi Llama data, there has been a significant decrease of around $50 million in Total Value Locked (TVL) in Cardano protocols since June 5, compared to its peak of $183.06 million in May 2022. However, when considering ADA specifically, the TVL has reached a record high, surpassing 507 million.
This represents a remarkable increase of 250% since the beginning of the year. ADA’s resilience in TVL can be attributed to various network improvements, including the launch of Hydra in May, which is Cardano’s scalability solution.
At press time, CoinMarketCap indicated that the altcoin had printed a 3.03% gain over the past 24 hours. As a result, ADA was changing hands at $0.2633. Despite the positive price performance over the past day, the Ethereum-killer’s weekly performance remained in the red, as the crypto’s price was down more than 16% over the past 7 days.
ADA also saw a drop in daily trading volume. At press time, the altcoin’s trading volume stood at $211 million, which was 23.64% lower than what it was the previous day.
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