A recent report on investment trends shows that smart money prefers a lower-performing but stable altcoin project over risky cryptos like Bitcoin or Dogecoin.
Research shows smart money is flowing into this altcoin project
ADA Whale, one of the biggest Cardano community members, suggested in a lengthy tweet on December 29 that smart money prefers to buy Cardano. The crypto phenomenon says investors aren’t in a rush to pick up cryptos like Bitcoin or Dogecoin as much as they do ADA during bear market dips. The VC coins featured in their statement are crypto projects that were initially entirely financed by venture capitalists, rather than raising money through ICOs. Once such cryptocurrencies are released, a pump and dump scheme takes place in the market.
Cardano stands out on the development activity front
Network development activities demonstrate a similar advantage, supporting what ADA Whale says. In recent days, Cardano’s development activity has outperformed Polkadot, helping it regain the limelight. Prior to that, DOT dominated the market in terms of development activity for some time.
As ADA’s development activity soared, a few more interesting moves were noted in on-chain metrics. These metrics give a fair idea of where ADA is headed. For example, ADA’s Market Value to Realized Value (MVRV) Ratio rose last week. In addition, ADA has managed to garner interest in the derivatives market as the Binance funding rate has also increased.
Also, ADA’s social dominance spiked last week, solidifying its popularity. However, Cardano’s speed has dropped over the past few days, which can be troubling for the network.
Surprisingly, ADA’s market indicators are showing a bearish trend. The EMA data revealed the dominance of sellers as the 20-day EMA remained below the 55-day EMA. Cardano’s Equilibrium Volume (OBV) and RSI data were also bearish.
Is Cardano inadequate in terms of energy efficiency?
Another interesting piece of data about ADA came from Bitboy, a crypto analyst who shared the energy consumption data of the networks. According to the data it provides, Cardano is currently the most energy-consuming Blockchain in the market. Bitboy says that Solana, the greenest altcoin project, owes this to its “centralisation”.
According to the data, Solana is at the bottom of the list, outpacing payment methods like Cardano or Visa. Cardano consumes 51.59% per transaction. This means that Cardano is a much more decentralized blockchain than Solana. However, the concerns for Cardano were not limited to these. Although he backed out of his decision, a popular Youtuber recently said that he had sold his ADAs. cryptocoin.comWe have given the details in this article.