Cardano: Are NFTs the catalyst ADA needs now

• NFTs on the Cardano network gained massive popularity.
• Despite this, activity on the network continued to decline.

Cardano [ADA] has seen a massive decline in price over the last month. Even though this drop may bring on skepticism around the Cardano network, there may be some factors that can help ADA push through.

NFTs see growth

The Cardano network NFTs dominated the market last month, with very large transactions taking place across collections. Cardano NFTs outnumbered Ethereum and Solana in sales and also in the overall price of each sale.

⚡️The Biggest #NFT Sales of the Past 30 Days

In this post, we highlight the largest Non-Fungible Token (NFT) sales that have occurred over the past month, delving into the details of each sale, including the specific NFT that was sold, and the price it fetched. Data from… pic.twitter.com/vW0W8pzm0v

— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) January 30, 2024

The dominance of Cardano’s NFTs in both transaction quantity and overall sales value positions the network as a formidable competitor in the NFT market. This success can attract artists, creators, and collectors to choose the network as their preferred platform for NFT creation and trading.

Moreover, the success of Cardano’s NFTs can enhance the network’s overall reputation and credibility in the broader blockchain space.

Positive market sentiment generated by successful NFT sales can attract attention from investors and developers, potentially leading to increased investment and the development of more decentralized applications (dApps) on the platform.

Some problems ahead

Despite the surge in NFTs being traded on the Cardano network, the overall activity on the protocol continued to fall along with the transactions occurring on the network.

Source: token terminal

Due to this, the fees generated by the network also declined. The fee accumulated declined by 11.3% in the last month.

The code commits on Cardano’s GitHub also fell. This suggested that development activity on the network had slowed down.

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Coming to the price of the ADA token, it was trading at $0.505 and its price had fallen by 4.26% in the last 24 hours.

The velocity at which ADA was trading surged during this period, which showed that the frequency at which ADA was being traded has increased.

Source: Santiment