The Key Takeaways
Cardano’s Q3 growth was 40%, but the delay in Chainlink integration as well as weaker on-chain activities held back DeFi.
Cardano’s [ADA] Three consecutive monthly price increases are shown.
ADA’s rally since Q3 started has been 40% above its $0.57 starting point, hinting at a double-digit move in September.
This price stability isn’t translating to on-chain dominance.
Slump in the on-chain market despite price increase
The fact that key metrics such as Daily Active Addresses (DAA) have fallen by nearly 100 percent in the last three months and Total Value Locked(TVL), which peaked at $721 million during the campaign, has dropped to less than half its previous peak.
DeFilLama
This kind of divergence is usually an indication that there could be manipulation.
Cardano is stuck in the same range of prices across all timeframes. Even though it has steady MoM inflows over the past few months, Cardano can’t overcome key psychological barriers, and underlying position is feeding a loop of volatility.
Derivatives also added to the volatility.
The 18th August saw ADA at $0.96 and Open Interest (OI). climbed Tokens fell to $0.80, with OI easing down to $1.54 billion by press time. The token dropped to $0.80 due to lack of follow through, and OI eased to $1.54bn by the time press was published.
Chainlink integration is critical for Cardano
Cardano has a very unique set-up.
Other Ethereum [ETH]Cardano has a special architecture, with its own language of programming (Plutus), and consensus protocol called Ouroboros. This makes it difficult to plug into Chainlink or other similar systems.
You can also find out more about us on our website. Chainlink [LINK] Cardano’s integration of the EVM chain requires additional dev glue and custom adapters.
Cardano Charles Hoskinson noted,
“Chainlink gave us an absurd number (price) for integration,” Sergey Nazarov “knows he’s sitting on a golden egg.”
Source: Artemis Terminal
What’s the outcome?
Faster On-Chain activity Chainlink’s oracle database (a critical piece of smart contract data) would be easier to obtain and more affordable, allowing fewer DeFi project launches.
Cardano needs to make compromises if it wants to break through this slump.
Cardano lags behind Ethereum which, thanks to Chainlink, gained almost $10 billion TVLs in August.
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Source: ambcrypto.com
