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Cardano ADA performed weakly today, trading at $0.898, down 8% in the past 24 hours. Weak technical structure and multiple on-chain signals indicate ADA may trend lower in the near future.
Let's take a look at the factors that led to the decline in Cardano's price today.
Cardano network activity decreased
Since early December, user participation in the Cardano network has significantly decreased.
Artemis data shows that the daily active address count of Cardano's on-chain blocks has dropped from 96,700 on December 3rd to around 40,700 on December 18th.
Similarly, the daily trading volume also decreased from around 144,300 transactions in the same period to 72,500 transactions.
In addition, the total locked value (TVL) of Cardano showed a downward trend in December. The chart below shows that the TVL fell by over 36% from around $7.089 billion on December 3 to around $4.5082 billion at the time of writing.
The decline in network TVL is not limited to Cardano. The total value locked in the DeFil protocol on Cardano has also been significantly reduced, as shown in the figure below.
Among the leading projects in the Cardano DeFi ecosystem, the decentralized open-source platform Splash Protocol stands out with its TVL dropping by 53% in the past week.