Cardano (ADA) continued its losing streak on Jan. 9, dropping 8% over the last 24 hours to trade at $0.918. A weakening technical structure and several onchain signals suggest that ADA could slip lower in the near term.
ADA/USD daily chart. Source: Cointelegraph/TradingView
Let’s look at the factors driving Cardano price down today.
Reducing network activity weighs down ADA price
The Cardano network has seen a remarkable drop in user engagement since the beginning of December. Data from Artemis shows that the number of daily active addresses on the Cardano blockchain has dropped from 96,700 on Dec. 3 to around 38,200 on Jan. 9.
Similarly, daily transactions have declined from approximately 144,300 to 54,600 over the same period.
Daily active addresses and transactions on the Cardano network. Source: Artemis
Additional data from DefiLlama reveals that the total value locked (TVL) on Cardano also decreased in December.
The chart below shows that the TVL fell by over 31.5% from about $708.9 million on Dec. 3 to approximately $485 million at the time of publication. The TVL dropped by $105 million between Jan. 7 and Jan. 9, representing an 18% decline in less than 72 hours.
TVL on Cardano. Source: DefiLlama
Among the leading projects in Cardano’s DeFi ecosystem, LenFi—a decentralized open-source lending and borrowing protocol—stands out, with its TVL dropping by 53% over the last month and 10% in the past 24 hours.
Other Cardano-based protocols, such as Liqwid (lending), Minswap (DEX), and Indigo (lending), also registered TVL declines of 6.5%, 9% and 8.7,% respectively, over the past 24 hours.
Performance of top DeFi protocols on Cardano. Source: DefiLlama
The declining network activity and reducing TVL on Cardano indicate diminished user interaction, decreasing demand for ADA tokens and negatively impacting its price.
Cardano’s open interest (OI) has also decreased by over 17% over the last three days, reaching $1.10 billion on Jan. 9. The current decrease in OI coincides with the ongoing price drop, which infers a waning interest from futures traders.
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