Cardano faces engagement crisis as trader positions shrink

Cardano is now struggling as user engagement remains low. The derivatives market is also showing signs of a downturn. Apart from the sharp 9% weekly decline in ADA, a more troubling signal is the lack of progress in user activity on the Cardano blockchain.

Data from CoinMarketCap revealed that there have been approximately 10,000 active addresses on the network per day since early March. This number hasn't grown even with the recent price hikes. This reflects the declining enthusiasm of new and existing users.

The market has also been pressured by the waning interest of traders in ADA-related derivatives. Contracts on this asset have fallen by nearly 30% since March 3, from $1.2 billion to under $900 million.

Experts say the stagnation in the Cardano network stems from both internal issues and broader industry trends.

The lack of significant catalysts and slow integration with the DeFi ecosystem is likely to make Cardano less appealing to investors. Such data is taken from the Coinotag portal.