- Cardano’s social activity has seen a spike in the last 24 hours.
- Coin’s social dominance now sits at a six-month high.
Cardano’s [ADA] social dominance has risen to a six-month high amid its double-digit price gains over the past 24 hours, data from Santiment has shown.
According to the data provider, ADA’s social dominance saw an 85% spike between 7th and 8th December. Still in an uptrend at press time, the coin’s social dominance was 3.15%.
When an asset’s social dominance grows this way, the coin is being talked about more online. A coin’s social activity is measured by tracking the volume of mentions on social media platforms, news articles, forums, and other online sources.
ADA’s price uptick in the last 24 hours can be attributed to the surge in demand for the altcoin during that period. AMBCrypto found that on 8th December, the daily count of addresses that completed transactions involving ADA rallied by 31%.
Data from Santiment showed that the 72,821 daily active addresses recorded that day marked a single-day high in ADA’s daily active address count since 18th November.
But there is a catch
A close correlation exists between an asset’s social and price activity. When social discussions around an asset increase alongside its price, there is always the possibility of a sharp correction.
In situations where the price uptick is not driven by any significant ecosystem update, the hike in social dominance might be due to an increase in Fear of Missing Out (FOMO).
Are ADA holders back in profit?
The general market rally recorded in the last month has caused ADA’s price to grow by 62%. As the alt’s price steadily grew, transactions involving the coin became increasingly profitable.
An assessment of ADA’s transaction volume ratio in profit to loss (30-day small moving average) put the metric at 1.02 at press time. This suggested that for every transaction that returned a loss in that period, 1.02 ended in a profit.
Likewise, for the first time since April 2022, ADA’s Market Value to Realized Value (MVRV) ratio has posted a positive value.
The MVRV ratio tracks the ratio between an asset’s current market price and the average price of every coin or token of that asset acquired. A positive MVRV ratio above one signals an asset is overvalued, and investors hold above their cost basis.
How much are 1,10,100 ADAs worth today?
Conversely, a negative MVRV value shows that the asset in question is undervalued. This means if holders sold at the asset’s current price, they would realize losses.
At press time, ADA’s MVRV ratio was 9.09%. This meant that if coin holders sold their coin at the current price, they were guaranteed at least 9.09% profit on their investments.
After a strong surge in its price over the past few weeks, Cardano (ADA) has seen another sharp increase in the past 24 hours. The token rose over 27% in the past day, reaching an all-time high of roughly $1.60. This surge has led many to speculate if the ADA price predictions of 2020 will be accurate.
The current rally of Cardano has been attributed to the announcement of its upcoming upgrades in the coming months. Cardano’s founder Charles Hoskinson has indicated that the network’s highly anticipated update, titled ‘Goguen’, is planned to launch this November. This upgrade will be a significant milestone for the Cardano network as it brings the ability to create smart contracts. As a result of the news, the anticipation in the Cardano community has been building in recent weeks, which appears to be the catalyst for the current surge in value.
Many analysts have made bullish predictions for Cardano for the year 2020. Some of these ADA price predictions suggest that it could reach an all-time high of $2.50 by 2021. While it is still too soon to tell if these predictions will come to fruition, the current state of the token indicates that the price is heading in a positive direction.
The Cardano price surge has created a new wave of optimism in the cryptocurrency world. Many investors are beginning to view Cardano as an asset with strong long-term potential. With its upcoming upgrades and a strong community behind it, Cardano is sure to remain in the spotlight for some time. The current surge serves as evidence that the cryptocurrency market is ever-changing and full of surprises. Only time will tell if ADA’s price predictions for 2020 will come true.