Cardano is one of the significant cryptocurrencies currently battling the continuing bear market that began in May. As the market value declines, investors slowly lose hope in vital projects, including the Cardano network.
According to Santiment, a crypto analytics platform, Cardano (ADA) is among the digital currencies that have suffered the most from the ongoing bear market.
Santiment noted in a tweet that Cardano recorded the least number of unique addresses interacting on the network in a year, following the massive price fluctuation of crypto assets.
Cardano address (Yellow) is falling in the Santiment graph. The moving average (30) (Dark Yellow Line) of ADA active addresses has fallen to the lowest point since 27 July 2021.
“On this bear market slide, Cardano is seeing the least amount of unique addresses interacting on its network in a year,” Santiment tweeted.
Aside from the declining number of unique addresses interacting with Cardano, Santiment added that the popular blockchain project has also recently suffered a decline in social sentiment.
The blockchain data analytics provider also noted that crypto investors’ sentiment toward Cardano and its native cryptocurrency ADA has dropped to a four-month low.
Related: Cardano Releases a New Node For The Upcoming Mainnet Vasil Hard Fork
Cardano’s Native Currency ADA Could Spike Up
Interestingly, both factors could become catalysts that could propel the price of ADA to surge massively. According to basic crypto theory, when a digital asset does not sell in large numbers, its price could increase when there is a significant transaction.
Similarly, while the decline in social engagement for ADA may seem like a significant downside for the eighth-largest cryptocurrency, it could bode well for the asset class shortly when the price spikes, with Santiment predicting that Fear-Of-Missing-Out (FOMO) will quickly return.
“When $ADA spikes again, #FOMO should return quickly,” Santiment added.
On Coinmarketcap, the crypto coin is down 65.5% and currently trading around $0.48, a nominal value compared to the start of this year.
