Cardano [ADA] is among the top blockchains across the globe and recently hit a new peak in the Nakamoto coefficient of 16. This put Cardano as one of the most decentralized chains as prices slowly rebound.
The altcoin has surged by more than 19% this week with daily gains averaging more than 6%. These gains resulted from Cardano transitioning to the Dijkstra development era. Can the price keep surging?
Dijkstra launch fuels Cardano’s weekly gains
According to CoinMarketCap, Cardano came a distant second among the largest weekly gainers. SKYAI recorded 261% with MemeCore [M], Humanity Protocol [H], and Pieverse [PIEVERSE] wrapping up the top 5 list for this week.
Cardano’s transition to the Dijkstra development era drove these weekly gains. This was a newly approved roadmap that made it the first chain to fund core development directly from its treasury.
Additionally, the ecosystem was expanding to other blockchains. For instance, the chain connected with Injective [INJ] via The Inter-Blockchain Communication Protocol (IBC), which was on testnet. Both INJ and ADA will be usable across the two ecosystems.
As a result, the daily trading volume has also jumped by more than 78%, recording about $747 million. It jumped from $412.8 million to A 7-day sum of $3.50 billion.
Furthermore, the Total Value Locked (TVL) rose by around 3%, reaching $88 million. The chain’s weekly DEX volume also increased by 17%, reaching $13 million.
Moreover, such developments prompted the big players to position themselves. According to Santiment data, whales have accumulated over 240 million ADA in the past few days.
Can ADA stay above $0.20?
Meanwhile, Cardano’s price broke above the $0.20 resistance level, but there was some lag at this zone. The altcoin price has been ranging between $0.14 and $0.20 since July, aligning with whale positioning. The range followed a 41% sharp drop from $0.24 to $0.14.
In support of this trend was the Bull/Bear Power indicator, which turned green. The CVD showed that traders on Binance’s spot market bought more than 40 million ADA tokens.
With the token clearing the $0.20 resistance that capped every recovery attempt this year, it exposed $0.24 and $0.30 as the next target areas. But failing to hold above $0.20, the altcoin may revert back to the range.
Therefore, Cardano’s native ADA may rally higher if the chain developments continue.
Final Summary
- Cardano surged by more than 19% this week after transitioning to the Dijkstra era, funding its development directly from its community treasury.Â
- ADA price broke above a resistance level at $0.20, which has capped every recovery attempt this year.
