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Is Cardano Ready for a Rotation Rebound Against Ethereum?
As the cryptocurrency market continues to fluctuate, investors are once again faced with the eternal question: is Cardano (ADA) finally primed for a rotation rebound against Ethereum (ETH)? To provide some clarity on this topic, we’ll delve into the recent price action and developer activity of both cryptocurrencies.
The first glance at the chart suggests that the tide may be turning in favor of ADA. The cryptocurrency has posted a respectable 7% intraday gain, outperforming its competitor ETH which saw a much more modest 5% increase. This divergent behavior is reminiscent of the November rally when ADA surged by 286%, while ETH could only muster a 68% gain. It’s worth noting that at that time, the ADA/ETH ratio spiked by an impressive 166%.
In order to determine whether this divergence will continue or not, let’s take a closer look at their on-chain metrics and development activities.
On one hand, we see that Cardano is quietly building momentum in its developer activity. According to recent GitHub data, ADA now ranks fourth in terms of development activity, leaving Ethereum behind in 13th position. This suggests that Cardano has been focusing on protocol refinement, scalability, and on-chain utility, which are key elements for institutional capital investment.
Moreover, Cardano’s daily active addresses rose by an astonishing 24.6% over the past week, while Ethereum saw a 14% drop to 453k. These figures imply that investors may be slowly shifting their focus towards ADA, potentially paving the way for its price action to follow suit.
In summary, it is too early to claim that Cardano has fully regained traction as it seems.
Source: ambcrypto.com
