Cardano (ADA) jumps 8% in 24 hours, but what does on-chain sentiment data show?

By Shaurya Malwa

ADA, the native token of smart contract platform Cardano, jumped 8% in the past day amidst rising public sentiment for the broader ecosystem, data from multiple sources showed.

ADA up

Cardano, for the uninitiated, runs on a proof-of-stake consensus design that allows coin holders, called stakers, to mine or validate block transactions according to how many coins they hold. This allows for a faster and lower fee network, and all internal transactions are conducted in ADA.

The platform is designed through peer-reviewed papers written by academics and is currently overseen by the Zug-based Cardano Foundation.

As per the below image, ADA trades above its 34-period exponential moving average—a tool used by traders that determines market trends using historical price movements—and seemingly remains in an uptrend (for now).

ADA:USD via TradingView

Technicals remain favorable on the on-chain side as well. As per data from on-chain sentiment tracking tool IntoTheBlock, three of the four major indicators measuring sentiment remained ‘bullish’ for Cardano. Net Network Growth increased by 3.38%, “whales” (holders with large holdings of an asset) continue to increase their positions, and momentum signals remained strong.

Image: IntoTheBlock

The coin has, however, ranged in the $0.97-$1.42 price range in the past two months, with its market cap hovering between $27 billion and $44 billion as a result. ADA has a current circulating supply of 31 billion with a max of 45 billion—giving it a fully diluted valuation of over $62 billion at these prices.

Cardano adoption

So what’s causing the ADA surge anyway? The project has seen a bump in adoption in the past week, with a partnership with the Ethiopian government serving as a big catalyst for the renewed public interest.

As CryptoSlate reported this week, the Cardano ecosystem would now be used to power student and teacher IDs and attainment recording systems to digitally verify grades, remotely monitor school performance and boost education and employment nationwide.

The solution will enable authorities to create tamper-proof records of educational performance across 3,500 schools, 5 million students, and 750,000 teachers to pinpoint the locations and causes of educational under-achievement and allocate educational resources effectively.

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